FAT Brands(FATBB) - 2025 Q2 - Quarterly Results

Financial Performance - Total revenue decreased by 3.4% to $146.8 million compared to $152.0 million in the fiscal second quarter of 2024[6] - Net loss was $54.2 million, or $3.17 per diluted share, compared to a net loss of $39.4 million, or $2.43 per diluted share, in the same quarter last year[6] - System-wide same-store sales declined by 3.9%[6] - Total revenue for the thirteen weeks ended June 29, 2025, was $146.836 million, a decrease of 3.9% compared to $152.040 million for the same period in 2024[26] - Net loss attributable to FAT Brands Inc. for the thirteen weeks ended June 29, 2025, was $54.188 million, compared to a net loss of $39.359 million for the same period in 2024, representing a 37.7% increase in loss[28] - Adjusted EBITDA for the twenty-six weeks ended June 29, 2025, was $26.764 million, down from $33.953 million for the same period in 2024, reflecting a decrease of 21.2%[27] - Basic and diluted loss per common share for the thirteen weeks ended June 29, 2025, was $3.17, compared to $2.43 for the same period in 2024, indicating a 30.1% increase in loss per share[28] - Total costs and expenses for the thirteen weeks ended June 29, 2025, were $162.386 million, an increase of 4.2% from $154.743 million in the same period of 2024[26] - Adjusted net loss for the thirteen weeks ended June 29, 2025, was $48.956 million, compared to $30.905 million for the same period in 2024, representing a 58.5% increase[28] - The company reported a loss from operations of $15.550 million for the thirteen weeks ended June 29, 2025, compared to a loss of $2.703 million for the same period in 2024, indicating a significant decline in operational performance[26] Expenses and Costs - General and administrative expenses increased by 50.3% to $44.4 million, primarily due to increased share-based compensation[9] - General and administrative expenses increased to $44.415 million for the thirteen weeks ended June 29, 2025, compared to $29.558 million in the same period of 2024, marking a 50.3% rise[26] - Interest expense for the thirteen weeks ended June 29, 2025, was $34.952 million, up from $29.586 million in the same period of 2024, reflecting an 18.0% increase[27] Sales and Revenue Streams - Digital sales at Great American Cookies now account for 25% of total revenue, with loyalty-driven sales up 40%[5] - The company opened 18 new locations during the second quarter, aiming for over 100 openings in 2025[5] - A development deal in Florida will add 40 Fatburger locations over the next decade, increasing the state's presence to approximately 50 locations[5] Strategic Initiatives - The company expects to generate an additional $30 to $40 million in annual cash flow savings from a bondholder agreement[5] - The company is actively pursuing strategic partnerships to expand manufacturing capacity and brand reach[5]