FAT Brands(FAT) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 decreased by 8.4% to $145.3 million compared to $158.6 million in Q4 2023, primarily due to a 14th week contributing $11.3 million in the prior year[4] - The company reported a net loss of $67.4 million, or $4.06 per diluted share, compared to a net loss of $26.2 million, or $1.68 per diluted share in Q4 2023[4] - Total revenue for the fiscal quarter ended December 29, 2024, was $145.28 million, a decrease of 8.4% from $158.64 million in the same quarter of 2023[25] - The net loss for the fiscal quarter was $67.42 million, compared to a net loss of $26.24 million in the same quarter of the previous year, representing a 156.5% increase in losses[27] - Basic and diluted loss per common share was $4.06 for Q4 2024, compared to $1.68 for Q4 2023, indicating a substantial increase in per-share losses[27] Revenue and Sales - System-wide sales declined by 7.4% in Q4 2024, with same-store sales decreasing by 1.6%[4] - Restaurant sales increased significantly to $100.89 million in Q4 2024, up 10.5% from $111.07 million in Q4 2023[25] - For the full fiscal year 2024, total revenue increased by 23.4% to $592.7 million compared to $480.5 million in FY 2023[13] Expenses and Losses - Adjusted EBITDA for Q4 2024 was $14.4 million, down from $27.0 million in Q4 2023[4] - Adjusted EBITDA for the fiscal quarter was $14.36 million, down 46.8% from $27.03 million in Q4 2023[26] - General and administrative expenses increased by 13.9% to $34.5 million in Q4 2024, primarily due to $5.0 million in Smokey Bones store closure costs[7] - General and administrative expenses rose to $34.52 million in Q4 2024, an increase of 14.8% from $30.30 million in Q4 2023[25] - Total costs and expenses for the quarter were $184.58 million, up 14.0% from $161.78 million in the same quarter of the previous year[25] Company Developments - The company opened 92 new restaurants in FY 2024 and signed over 250 new franchise agreements, increasing the development pipeline to 1,000 locations[3] - The company plans to refranchise 57 company-owned Fazoli's locations, aiming to return to nearly 100% franchised operations[3] - The spin-out of Twin Hospitality Group Inc. is expected to provide valuable capital resources to accelerate growth for FAT Brands[3] Impairments and Share Information - The company reported a significant impairment of goodwill and other intangible assets amounting to $30.60 million in Q4 2024, compared to only $500,000 in Q4 2023[25] - The weighted average shares outstanding increased to 17,113,424 in Q4 2024 from 16,675,096 in Q4 2023, reflecting a 2.6% increase in shares[27] Dividends - The company declared cash dividends of $0.14 per common share for both Q4 2024 and Q4 2023, maintaining the same dividend level[27]