Company Overview - FAT Brands Inc. is a leading global franchising company that owns and operates 18 restaurant brands including Round Table Pizza, Fatburger, Johnny Rockets, and Twin Peaks [3] - The company has approximately 2,300 units worldwide, focusing on fast casual, quick-service, casual dining, and polished casual dining concepts [3] Upcoming Event - Andy Wiederhorn, Chairman, and Ken Kuick, Co-CEO and CFO of FAT Brands, will present at Noble Capital Markets' Emerging Growth Virtual Equity Conference on June 5, 2025, at 1:00 PM Eastern Standard Time [1] - Registered, qualified investor attendees will have the opportunity for scheduled 1x1 meetings with the company [1] Event Accessibility - Attendees can register for the live presentation at no cost [2] - A video webcast of the presentation will be available on the company's website and on Channelchek for 90 days following the event [2]

Company Overview - Pretzelmaker, owned by FAT Brands Inc., is known for its innovative Pretzel Bites and has been in operation since 1991, starting as a single pretzel stand [3][6] - The company has grown to over 280 locations worldwide and continues to innovate with various menu offerings [6] New Product Launch - Pretzelmaker has introduced a new menu item, Cheetos Flamin' Hot Pretzel Bites, available until July 13, 2025, following the success of last year's Cheetos Pretzel Bites [2][3] - The new product features a dusting of Cheetos' Flamin' Hot Dust and is freshly baked and hand-rolled daily, providing a spicy flavor that pairs well with the chain's all-natural Lemonade [2][3] Marketing Strategy - The Vice President of Marketing at Pretzelmaker, Katie Thoms, emphasized the company's commitment to customer feedback and the desire to enhance flavor offerings, indicating a strong focus on customer engagement [3] - The collaboration with Cheetos aims to maintain excitement and attract customers through innovative flavor combinations [3] Parent Company Information - FAT Brands is a global franchising company that owns 18 restaurant brands and operates over 2,300 units worldwide, indicating a robust presence in the fast-casual dining sector [5] - The company strategically acquires and develops various dining concepts, showcasing its diverse portfolio [5]

PART I. FINANCIAL INFORMATION (Unaudited) [Item 1. Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q1 2025 reflect decreased revenue, a wider net loss, and an increased stockholders' deficit, influenced by the Twin Hospitality Group spin-off and legal challenges [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 30, 2025, total assets decreased to **$1.27 billion**, total liabilities increased to **$1.77 billion**, and the stockholders' deficit widened to **$499.5 million**, with **negative working capital of $233.5 million** Condensed Consolidated Balance Sheet Data (in thousands USD) | Account | March 30, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$1,273,539** | **$1,289,178** | | Cash | $12,150 | $23,383 | | Goodwill | $285,337 | $285,337 | | Other intangible assets, net | $591,783 | $595,689 | | **Total Liabilities** | **$1,773,035** | **$1,744,890** | | Total current liabilities | $316,594 | $298,316 | | Long-term debt, net | $1,216,805 | $1,208,997 | | **Total stockholders' deficit** | **($499,496)** | **($455,712)** | - The company reported **negative working capital of $233.5 million** as of March 30, 2025, including **$91.8 million** in redeemable preferred stock classified as a current liability[27](index=27&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenue decreased to **$142.0 million**, loss from operations widened to **$8.6 million**, and net loss attributable to FAT Brands Inc. increased to **$46.0 million**, or **$2.73 per share** Condensed Consolidated Statements of Operations (in thousands USD, except per share data) | Metric | Thirteen Weeks Ended March 30, 2025 | Thirteen Weeks Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $142,019 | $151,967 | | Loss from operations | ($8,566) | ($1,382) | | Net loss attributable to FAT Brands Inc. | ($45,969) | ($38,316) | | Basic and diluted loss per common share | ($2.73) | ($2.37) | - No cash dividends were declared per common share in Q1 2025, compared to **$0.14** in Q1 2024[13](index=13&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Deficit](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Deficit) The total stockholders' deficit increased from **$455.7 million** to **$499.5 million** in Q1 2025, primarily driven by a **$46.3 million** net loss, partially offset by stock issuances and share-based compensation - The **net loss of $46.0 million** was the main contributor to the increase in the accumulated deficit during Q1 2025[16](index=16&type=chunk) - The spin-off of Twin Hospitality Group Inc. created a **non-controlling interest of $5.6 million** on the balance sheet[16](index=16&type=chunk)[121](index=121&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities improved to **$13.2 million** outflow, while net cash from financing activities decreased to **$5.2 million**, resulting in an **$8.0 million** decrease in cash and restricted cash to **$59.3 million** Consolidated Cash Flow Summary (in thousands USD) | Cash Flow Activity | Thirteen Weeks Ended March 30, 2025 | Thirteen Weeks Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($13,217) | ($28,401) | | Net cash used in investing activities | ($24) | ($8,046) | | Net cash provided by financing activities | $5,193 | $40,376 | | **Net (decrease) increase in cash** | **($8,048)** | **$3,929** | | **Cash and restricted cash at end of period** | **$59,341** | **$95,832** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail liquidity risks from net losses and negative working capital, a complex **$1.26 billion** debt structure, significant redeemable preferred stock liabilities, ongoing government investigations and lawsuits, and the recent spin-off of Twin Hospitality Group Inc - The company has a history of net losses, an **accumulated deficit of $499.5 million**, and **negative working capital of $233.5 million** as of March 30, 2025, though management expects sufficient liquidity for the next twelve months[27](index=27&type=chunk) Total Debt Summary (in millions USD) | Debt Category | Face Value | Book Value | | :--- | :--- | :--- | | Total Securitized Debt | $1,278.2 | $1,250.8 | | Other Debt | $14.5 | $14.5 | | **Total Debt** | **$1,292.7** | **$1,265.3** | - Significant liabilities from redeemable preferred stock, totaling **$91.8 million** as of March 30, 2025, stem from GFG and Twin Peaks acquisitions, subject to put options and accruing interest[87](index=87&type=chunk)[93](index=93&type=chunk)[27](index=27&type=chunk) - The company and its former CEO face ongoing DOJ and SEC investigations regarding transactions, compensation, and loans, with the DOJ indicting the company in May 2024, alongside multiple derivative and class action lawsuits[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - On January 29, 2025, the company completed the spin-off of Twin Hospitality Group Inc., retaining approximately **98.6%** voting power and continuing to consolidate its financial statements[119](index=119&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **6.5%** Q1 2025 revenue decrease to planned restaurant closures and notes a **10.1%** rise in G&A expenses due to litigation, while expressing confidence in liquidity for the next twelve months despite negative operating cash flow - Total revenue decreased by **$9.9 million (6.5%)** in Q1 2025, primarily due to reduced restaurant revenue from planned closures for conversions[131](index=131&type=chunk) - General and administrative expenses increased by **$3.0 million (10.1%)** in Q1 2025, mainly due to higher professional fees for pending litigation[133](index=133&type=chunk) - Net cash used in operating activities improved to **$13.2 million** in Q1 2025 from **$28.4 million** in Q1 2024, primarily due to working capital changes[147](index=147&type=chunk) - Management expresses confidence in meeting liquidity needs for the next twelve months via cash on hand, operational cash flow, and capital market access, despite **$91.8 million** in liabilities from exercised Series B Preferred Stock put options[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This disclosure is not required for the current filing - Disclosure for this item is not required[153](index=153&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded the company's Disclosure Controls and Procedures were effective as of the end of the reporting period[154](index=154&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[155](index=155&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 of the condensed consolidated financial statements for details on material pending legal proceedings - The report refers to Note 13, Commitments and Contingencies, in the financial statements for a description of material pending legal proceedings[157](index=157&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the Annual Report on Form 10-K filed on February 28, 2025 - No material changes in risk factors have occurred from those discussed in the Annual Report on Form 10-K filed on February 28, 2025[158](index=158&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported[159](index=159&type=chunk) [Item 3. Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None reported[160](index=160&type=chunk) [Item 4. Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[161](index=161&type=chunk) [Item 5. Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the fiscal quarter ended March 30, 2025[162](index=162&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements for the Twin Hospitality Group Inc. spin-off, a securitization amendment, and officer certifications - Key exhibits filed include agreements for the Twin Hospitality spin-off, an amendment to the Fazoli's/Native Securitization, and required officer certifications under the Sarbanes-Oxley Act[164](index=164&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $142 million, reflecting a 6.5% decrease from $152 million in the same period last year [12][30] - Adjusted EBITDA was $11.1 million compared to $18.2 million in the prior year quarter [13][32] - Net loss attributable to FAT Brands was $46 million or $2.73 per diluted share, compared to a net loss of $38.3 million or $2.37 per share in the prior year [31] Business Line Data and Key Metrics Changes - System-wide sales were $571.1 million, down 1.8% compared to the previous year's quarter [13] - The Casual Dining segment saw same-store sales increase approximately 1.6%, driven by Buffalo's Cafe and Ponderosa and Bonanza locations [14] - Factory revenue decreased by about 7%, attributed to lower same-store sales and the absence of Smoky Bones locations [54] Market Data and Key Metrics Changes - Domestic system-wide sales outperformed international sales for the quarter, although there was an encouraging rebound in international locations towards the end of Q1 [13] - Digital sales at Roundtable Pizza increased by 5% sequentially from Q4 2024 to Q1 2025 [16] Company Strategy and Development Direction - The company is focused on expanding its brand presence with commitments for over 1,000 new locations already in the pipeline [14] - A strategic move involved spinning off Twin Hospitality Group Inc, which is now listed separately on Nasdaq [7] - The company aims to enhance production capabilities at its Georgia facility, particularly in cookie dough and dry mix manufacturing [15][26] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is mixed, with consumers being apprehensive and focused on value [40][41] - The company is committed to debt reduction and leveraging its robust pipeline of growth opportunities [29] - Management expressed confidence in achieving full annual equity target raises over the next twelve months despite current market volatility [10][44] Other Important Information - The company has temporarily paused FAT's common dividend and started accruing the FAT Series B preferred dividend until certain financial thresholds are met [11] - The company is focused on refranchising its Fazoli's locations, which could generate approximately $20 million to $25 million in proceeds for debt reduction [59] Q&A Session Summary Question: Impact of cookie facility utilization increase - Management aims to increase the cookie facility's revenue from $15 million to $25 million annually with improved utilization [34][35] Question: Consumer focus on value - Management noted that consumers are looking for great food and experiences to justify prices, indicating a continued focus on value [40][41] Question: Smoky Bones negative impact on EBITDA - Management estimated a couple million dollars negative impact from Smoky Bones on adjusted EBITDA for the quarter [66][67] Question: Timeline for finding a new CEO - The executive search for a new CEO is progressing well, with expectations to conclude within the quarter [73] Question: Incremental adjusted EBITDA from new stores and factory - Management anticipates achieving the targeted incremental adjusted EBITDA over the next couple of years [77]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $142 million, reflecting a 6.5% decrease from $152 million in the same period last year [12][30] - Adjusted EBITDA was $11.1 million compared to $18.2 million in the prior year quarter [13][32] - Net loss attributable to FAT Brands was $46 million or $2.73 per diluted share, compared to a net loss of $38.3 million or $2.37 per share in the prior year [31] Business Line Data and Key Metrics Changes - Domestic system-wide sales outperformed international sales, with system-wide sales totaling $571.1 million, down 1.8% year-over-year [13] - The Casual Dining segment saw same-store sales increase approximately 1.6%, driven by Buffalo's Cafe and Ponderosa and Bonanza locations [14] - Factory revenue was off about 7%, attributed to lower same-store sales and the absence of Smoky Bones locations [53] Market Data and Key Metrics Changes - The company observed an encouraging rebound in international locations towards the end of Q1, indicating potential for future growth [13] - Digital sales at Roundtable Pizza increased by 5% sequentially from Q4 2024 to Q1 2025 [16] Company Strategy and Development Direction - The growth strategy is based on three elements: organic expansion with over 1,000 new locations in the pipeline, strategic acquisitions, and enhancing production capabilities [14][15] - The company is focused on reducing leverage and improving cash flow, with plans to raise between $75 million and $100 million in equity in 2025 [10][11] - A remodeling initiative aims to refresh 5% of all stores in 2025, increasing to 10% in 2026 [19] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is mixed, with consumers being apprehensive and focused on value [40][41] - The company is optimistic about achieving its full annual equity target raise over the next twelve months despite current market volatility [10][11] - Management expects to see a significant reduction in litigation expenses in Q2 2025 [60] Other Important Information - The company has initiated a comprehensive executive search for a new CEO following the transition of Joe Hummel [9][73] - The foundation has awarded 10 grants in 2025, indicating a commitment to community engagement [28] Q&A Session Summary Question: Impact of cookie facility utilization increase - Management aims to increase the cookie facility's revenue from $15 million to $25 million annually with improved utilization [34][35] Question: Consumer focus on value - Management acknowledged that consumer confidence is event-driven and emphasized the importance of providing a great experience to justify prices [40][41] Question: Delay in equity raise post-Twin Peaks IPO - Management indicated that there is no immediate pressure to raise funds and is waiting for market conditions to improve [43][44] Question: Year-over-year impact of Smoky Bones - Management estimated a couple million dollars negative impact from Smoky Bones on adjusted EBITDA [66][67] Question: Timeline for new CEO search - Management stated that the executive search is progressing well and should conclude soon [73][74] Question: Incremental adjusted EBITDA from new stores and factory - Management expects to achieve the targeted incremental adjusted EBITDA over the next couple of years [76]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $142 million, a 6.5% decrease from $152 million in the same period last year [11][28] - Adjusted EBITDA was $11.1 million compared to $18.2 million in the previous year [12][30] - Net loss attributable to FAT Brands was $46 million or $2.73 per diluted share, compared to a net loss of $38.3 million or $2.37 per share in the prior year [29] Business Line Data and Key Metrics Changes - System-wide sales were $571.1 million, down 1.8% compared to the previous year's quarter [12] - Casual Dining segment saw same store sales increase approximately 1.6%, driven by Buffalo's Cafe and Ponderosa and Bonanza locations [13] - Factory revenue decreased by about 7% [50] Market Data and Key Metrics Changes - Domestic system-wide sales outperformed international sales, although there was a rebound in international locations towards the end of Q1 [12] - Digital sales at Roundtable Pizza increased by 5% sequentially from Q4 2024 to Q1 2025 [15] Company Strategy and Development Direction - The company is focused on expanding its brand presence with over 1,000 new locations in the pipeline and evaluating strategic acquisitions [13][16] - A remodeling initiative aims to refresh 5% of all stores in 2025, increasing to 10% in 2026 [17] - The company is enhancing production capabilities at its Georgia facility, targeting increased utilization from 40-45% to 60-70% [24] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is mixed, with consumers being apprehensive and focused on value [38] - The company is committed to debt reduction and leveraging growth opportunities, with a focus on maximizing shareholder value [27] - Management expressed confidence in achieving full annual equity target raises despite current market volatility [10][42] Other Important Information - The company has temporarily paused FAT's common dividend and started accruing the FAT Series B preferred dividend [10] - The spin-off of Twin Hospitality Group Inc. was completed, allowing shareholders to invest directly in Twin Peaks growth [7] Q&A Session Summary Question: Impact of cookie facility utilization increase - Management aims to increase the facility's revenue from $15 million to $25 million annually with improved contracts [32][36] Question: Consumer focus on value - Management indicated that consumers are looking for great food and experiences to justify prices, and this trend is expected to continue [39][40] Question: Delay in equity raise post-Twin Peaks IPO - Management stated that there are no immediate pressures, and they are waiting for market conditions to improve [41][42] Question: Year-over-year impact of Smoky Bones - Management estimated a couple million dollars negative impact from Smoky Bones on adjusted EBITDA [66] Question: Timeline for new CEO search - The executive search for a new CEO is progressing well, with several excellent candidates [72] Question: Incremental adjusted EBITDA from new stores and factory - Management expects the additional $15 million in adjusted EBITDA to materialize over the next couple of years [73]

Q1 2025 Financial Performance - System-wide sales decreased by 1.8%[7] from $581.8 million in Q1 2024 to $571.1 million in Q1 2025[10] - Same-store sales declined by 3.4%[7] - Total revenue decreased from $152.0 million in Q1 2024 to $142.0 million in Q1 2025[7, 10], a decrease of approximately 6.6% - Adjusted EBITDA decreased from $18.2 million in Q1 2024 to $11.1 million in Q1 2025[7, 10], a decrease of approximately 39% - Net loss attributable to FAT Brands Inc increased from $38.316 million to $45.969 million[21, 22], an increase of approximately 20% Strategic Initiatives - The company plans to accelerate the build-out of a 1,000+ unit new store pipeline[13] - The company aims to drive approximately $10 million in Adjusted EBITDA growth from new stores[13] - The company aims to drive approximately $5 million in Adjusted EBITDA growth from factory production[13] - The company intends to re-franchise 57 company-owned Fazoli's restaurants[13]

Exhibit 99.1 FAT BRANDS INC. REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS Conference call and webcast today at 5:30 p.m. ET LOS ANGELES (May 8, 2025) – FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) ("FAT Brands" or the "Company") today reported financial results for the fiscal first quarter ended March 30, 2025. Andy Wiederhorn, Chairman of FAT Brands, said, "We started 2025 with strong momentum, opening 23 new locations in the first quarter, a 37% increase over last year's quarter. We remain on ...

Core Insights - FAT Brands reported a total revenue of $142.0 million for the fiscal first quarter of 2025, a decrease of $9.9 million or 6.5% compared to $152.0 million in the same quarter last year, primarily due to lower same-store sales and the closure of one Smokey Bones location [5][7] - The company opened 23 new locations in the first quarter, representing a 37% increase from the previous year, and is on track to open over 100 new restaurants in 2025 [2][7] - The net loss for the first quarter was $46.0 million, or $2.73 per diluted share, compared to a net loss of $38.3 million, or $2.37 per diluted share, in the same quarter of 2024 [7][9] Financial Performance - System-wide sales declined by 1.8%, and same-store sales decreased by 3.4% in the first quarter of 2025 [7] - EBITDA for the quarter was $2.1 million, down from $9.4 million in the fiscal first quarter of 2024, while adjusted EBITDA was $11.1 million compared to $18.2 million in the prior year [7][26] - General and administrative expenses increased by $3.0 million, or 10.1%, to $33.0 million, primarily due to increased professional fees related to pending litigation [8] Strategic Developments - The successful spin-off of Twin Hospitality Group Inc. resulted in a $50 million dividend to shareholders, while the company retains ownership of remaining shares [2] - The company is advancing its strategy to return to a nearly 100% franchised model, with plans to refranchise 57 company-operated Fazoli's restaurants [2] - FAT Brands is expanding internationally, having secured agreements to open 40 locations in France, including Fatburger and Buffalo's Cafe concepts [2]

Core Viewpoint - FAT Brands Inc. will host a conference call to discuss its first quarter 2025 financial results on May 8, 2025, at 5:30 PM ET, with a press release to be issued prior to the call [1] Group 1: Conference Call Details - The conference call can be accessed by dialing 1-877-704-4453 from the U.S. or 1-201-389-0920 internationally, with a replay available until May 29, 2025 [2] - The call will be hosted by Andy Wiederhorn, Chairman, and Ken Kuick, Co-Chief Executive Officer and Chief Financial Officer [2] - The conference call will also be webcast live on the corporate website under the "Investors" section, with a replay available shortly after the call [3] Group 2: Company Overview - FAT Brands is a leading global franchising company that owns and operates 18 restaurant brands, including Round Table Pizza, Fatburger, and Johnny Rockets, with over 2,300 units worldwide [4] - The company focuses on acquiring, marketing, and developing various dining concepts, including fast casual, quick-service, and casual dining [4]