FAT BRANDS(FATBP) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenue decreased by 2.3% to $140.0 million compared to $143.4 million in Q3 2024[5] - Net loss for the quarter was $58.2 million, or $3.39 per diluted share, compared to a net loss of $44.8 million, or $2.74 per diluted share in Q3 2024[5] - Adjusted EBITDA was $13.1 million, down from $14.1 million in Q3 2024[5] - System-wide sales declined by 5.5% and same-store sales declined by 3.5% in Q3 2025[5] - Total revenue for the thirteen weeks ended September 28, 2025, was $140,009,000, a decrease of 2.4% from $143,365,000 in the same period of 2024[26] - Net loss attributable to FAT Brands Inc. for the thirteen weeks ended September 28, 2025, was $58,219,000, compared to a net loss of $44,755,000 for the same period in 2024, representing a 30.1% increase in loss[28] - Adjusted EBITDA for the thirty-nine weeks ended September 28, 2025, was $39,881,000, down from $48,012,000 in the same period of 2024, reflecting a decrease of 16.5%[27] - Basic and diluted loss per common share for the thirteen weeks ended September 28, 2025, was $3.39, compared to $2.74 for the same period in 2024, reflecting a 23.7% increase in loss per share[28] - Total costs and expenses for the thirteen weeks ended September 28, 2025, were $157,375,000, up from $152,198,000 in the same period of 2024, representing a 3.6% increase[26] - Adjusted net loss for the thirty-nine weeks ended September 28, 2025, was $133,127,000, compared to $101,820,000 in the same period of 2024, an increase of 30.5%[28] Operational Highlights - Same-store sales growth in the casual dining segment was 3.9%, indicating strong operational execution[4] - The company opened 60 new restaurants year-to-date, with 13 new store openings in Q3 2025[5] - Approximately 900 committed locations are expected to contribute $50-$60 million in incremental EBITDA once fully operational[4] Expenses and Costs - General and administrative expenses increased by 23.7% to $42.7 million, primarily due to store closure costs and higher share-based compensation[8] - General and administrative expenses increased to $42,665,000 for the thirteen weeks ended September 28, 2025, compared to $34,481,000 in the same period of 2024, marking a rise of 23.7%[26] - Interest expense for the thirteen weeks ended September 28, 2025, was $41,519,000, an increase from $35,527,000 in the same period of 2024, indicating a rise of 16.3%[27] - Advertising expenses increased to $12.2 million, reflecting a rise from $10.0 million in the same period last year[10] - The company reported a store closure expense of $8,285,000 for the thirteen weeks ended September 28, 2025[27] Financial Strategy - The company is negotiating a debt restructuring and plans a $75-$100 million equity raise to pay down debt and fund new unit development[4] - Cash dividends declared per common share were $0.14 in the prior year, with no dividends declared for the current year[28]