Company Overview - Pretzelmaker, owned by FAT Brands Inc., is known for its innovative soft Pretzel Bites and has expanded its presence with a new location in Clear Lake, IA [1][2] - The company has grown to become the second-largest soft pretzel concept in the U.S., with over 280 locations worldwide [6] Growth and Expansion - The new Clear Lake location marks the 11th operated by franchisee Mark Frandle, highlighting the brand's growth in Iowa [2] - Since its inception in 1991, Pretzelmaker has evolved from a single pretzel stand to a well-recognized brand offering a variety of snacks and beverages [2][6] Product Offering - Pretzelmaker specializes in fresh-baked, hand-rolled Pretzel Bites accompanied by a selection of sweet and savory dipping sauces, as well as fresh-squeezed, all-natural lemonade [2][6] Business Model - FAT Brands is a global franchising company that owns and operates 18 restaurant brands, with over 2,300 units worldwide [5]

Major Milestone Before Planned Public Listing of Twin Hospitality Group LOS ANGELES, Nov. 18, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc., (NASDAQ: FAT), a leading global franchising company and parent company of 18 iconic brands, is pleased to announce that Twin Hospitality Group Inc., the operating unit for its Twin Peaks and Smokey Bones restaurant brands, has priced the issuance of new notes to refinance its whole business securitization credit facility originated in October 2021 ...

Beloved Burger Chain Continues to Sizzle in the Lone Star State with Latest San Antonio Area Opening LOS ANGELES, Nov. 14, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. announces the opening of the latest Fatburger and Buffalo’s Express location in the greater San Antonio area in New Braunfels, TX. This marks the 10th location in the state of Texas, which continues to be a high-growth area for the California-born burger brand. “Since we first landed in Texas, we have developed a loyal ...

Award-Winning Wing Brand Debuts First Theme Park Location LOS ANGELES, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Hurricane Grill & Wings, the award-winning wing chain owned by FAT Brands Inc. is thrilled to announce the opening of a new location at Six Flags Great Escape Lodge, Lake George’s premier family resort destination. As the hotel’s brand-new, flagship dining option, the restaurant brings a vibrant, laid-back atmosphere with delicious menu offerings to both resort guests and the Lake George regional communi ...

Sister Concepts Double Down on Co-Branded Experience LOS ANGELES, Nov. 01, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc., parent company of Great American Cookies, Marble Slab Creamery and 16 other restaurant concepts, announces the launch of a brand new app experience and loyalty program for sister brands Great American Cookies and Marble Slab Creamery – the Great American Cookies and Marble Slab Creamery Rewards App. The Great American Cookies and Marble Slab Creamery Rewards app cre ...

Revenue Growth - Total revenue increased by $125.6 million, or 39.0%, to $447.4 million for the first three quarters of 2024 compared to $321.8 million in the same period of 2023, primarily driven by the acquisition of Smokey Bones and new restaurant openings [124]. - Restaurant sales rose to $312.6 million for the first three quarters of 2024, up from $187.9 million in the same period of 2023, reflecting a significant increase in company-owned restaurant performance [123]. - Total revenue for the third quarter of 2024 increased by $34.0 million, or 31.1%, to $143.4 million compared to $109.4 million in the same period of 2023 [133]. Costs and Expenses - Total costs and expenses increased by $163.9 million, or 55.3%, to $460.3 million in the first three quarters of 2024, mainly due to the acquisition of Smokey Bones and increased activity from company-owned restaurants [125]. - Costs and expenses for the third quarter of 2024 rose by $49.5 million, or 48.1%, to $152.2 million, largely due to the acquisition of Smokey Bones and increased activity from company-owned restaurants [134]. - General and administrative expenses rose by $31.2 million, or 49.7%, to $94.0 million in the first three quarters of 2024, influenced by the acquisition of Smokey Bones and increased professional fees [127]. - Cost of restaurant and factory revenues increased by $118.2 million, or 66.5%, in the first three quarters of 2024, driven by the acquisition of Smokey Bones and higher sales from company-owned locations [128]. Net Loss and Other Expenses - Net loss for the first three quarters of 2024 was $122.4 million, compared to a net loss of $63.9 million in the same period of 2023 [123]. - Total other expense, net, for the first three quarters of 2024 was $103.9 million, up from $86.8 million in the prior year, primarily due to increased interest expenses from new debt offerings [132]. Cash Flow and Liquidity - As of September 29, 2024, the company's cash and restricted cash balance was $66.7 million, down from $91.9 million as of December 31, 2023 [146]. - Net cash used in operating activities increased by $22.8 million to $(45.8) million for the thirty-nine weeks ended September 29, 2024, compared to $(23.0) million in 2023 [147]. - Net cash used in investing activities was $26.0 million for the thirty-nine weeks ended September 29, 2024, compared to $14.3 million in the same period of 2023 [148]. - Net cash provided by financing activities was $46.6 million for the thirty-nine weeks ended September 29, 2024, primarily from borrowings [149]. - The company believes it has sufficient liquidity to meet its needs for at least the next twelve months through available cash and cash flows from operations [144]. Future Plans and Commitments - The company plans to expand franchise locations, which will require significant liquidity primarily from franchisees [142]. - Future acquisitions of restaurant concepts are expected to necessitate financing through additional debt or equity transactions [143]. - There are no material commitments for capital expenditures as of September 29, 2024 [152]. Dividends and Liabilities - The company declared cash dividends of $0.14 per share for Class A and Class B common stock, totaling $2.4 million for each declaration [150]. - The company has liabilities of $91.8 million related to put options on Series B Cumulative Preferred Stock, with options to extend repayment [144]. Tax Rate - The effective income tax rate for the first three quarters of 2024 was (4.8)%, compared to (4.2)% for the same period in 2023, reflecting changes in valuation allowances and nondeductible expenses [133].

Financial Performance - Total revenue grew 31.1% to $143.4 million, up from $109.4 million in the same quarter last year, primarily driven by the acquisition of Smokey Bones [8][39] - Adjusted EBITDA was $14.1 million, compared to $21.9 million in the corresponding quarter last year [8][43] - Net loss was $44.8 million or $2.74 per diluted share, compared to a net loss of $24.7 million or $1.59 per diluted share in the prior year quarter [43] Business Line Performance - System-wide sales increased to $600.7 million in Q3, marking a 6.4% increase year-over-year [8] - Twin Peaks locations achieved average unit volumes of approximately $6 million annually, with select high-performing markets seeing AUVs in the $9 million to $14 million range [12][13] - The acquisition of Smokey Bones is expected to convert approximately 30 locations into Twin Peaks, enhancing sales significantly [14][15] Market Performance - The company opened 22 new units during the quarter, bringing year-to-date openings to 62 units, with plans for approximately 40 additional units in Q4 [10] - The development pipeline includes signed agreements to open approximately 1,000 new units in the coming years, projected to contribute $50 million to $60 million to annual adjusted EBITDA [11] Company Strategy and Industry Competition - The company focuses on organic growth, acquisitions, and increasing production at its Georgia-based manufacturing facility [9] - Emphasis on digital marketing initiatives and enhancing guest experience to drive growth [12] - The company is exploring co-branding opportunities, such as the Great American Cookies and Marble Slab Ice Cream initiative, which has expanded significantly [22][24] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the conversion of Smokey Bones locations to Twin Peaks, noting significant sales increases [46] - The company is focused on improving cash flow and plans to refinance debt to enhance financial stability [92][93] - Management highlighted the importance of guest experience in driving traffic and sales, especially in the current economic climate [80] Other Important Information - The FAT Brands Foundation awarded over 50 grants through September, surpassing the previous year's total [35] - The company is in the process of refinancing Twin Peaks' securitization debt and plans to use proceeds from a potential IPO to reduce leverage and fund new restaurant construction [20][21] Q&A Session Summary Question: How has the conversion of Smokey Bones to Twin Peaks gone so far? - Management reported strong performance, with sales increasing from $3.6 million to $8.3 million post-conversion, exceeding expectations [46] Question: What is the performance of Twin Peaks compared to other brands? - Twin Peaks has shown outstanding same-store sales and overall system-wide sales have increased significantly due to unit growth [50] Question: What is the outlook for the operating loss and royalty revenues? - Management acknowledged challenges with Smokey Bones and company-owned stores but noted positive trends in other brands [55][56] Question: What is the status of the manufacturing facility's revenue? - Management indicated ongoing efforts to increase utilization through third-party customers and a national test for cookie production [60][62] Question: What are the plans for refinancing debt? - Management is focused on refinancing Twin Peaks debt and addressing other debt facilities, with expectations for significant cash flow improvements in the next 12 months [63][68]

Q3 2024 EARNINGS SUPPLEMENT OCTOBER 30, 2024 FRESH. AUTHENTIC. TASTY. L MES. LEGAL DISCLAIMER This earnings supplement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the future financial and operating results of the Company, estimates of future EBITDA, the timing and performance of new store openings, future reductions in cost of capital and leverage ratio, our ability to conduct future accretive acquisitions a ...

Conference call and webcast today at 5:00 p.m. ET LOS ANGELES, Oct. 30, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) ("FAT Brands" or the "Company") today reported financial results for the fiscal third quarter ended September 29, 2024. Andy Wiederhorn, Chairman of FAT Brands, said, "Over the last three years, we have expanded our brand portfolio to include 18 distinct concepts while our footprint has increased tenfold, now encompassing over 2,300 locations across more t ...

LOS ANGELES, Oct. 23, 2024 (GLOBE NEWSWIRE) -- FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”), a leading global franchising company and parent company of iconic brands including Round Table Pizza, Fatburger, Johnny Rockets, Twin Peaks, Fazoli’s and 13 other restaurant concepts, today announced that the Company will host a conference call to review its third quarter 2024 financial results on Wednesday, October 30, 2024 at 5:00 PM ET. A press release with third quarte ...