FAT Brands(US:FAT)2025-11-12 22:06Financial Performance - Total revenue for the thirty-nine weeks ended September 28, 2025, decreased by $18.5 million, or 4.1%, to $428.9 million compared to $447.4 million in the same period of 2024[142]. - The company reported a net loss attributable to FAT Brands Inc. of $58.2 million for the thirteen weeks ended September 28, 2025, compared to a net loss of $44.8 million in the same period of 2024[141]. - The company recognized losses from operations of $41.5 million for the thirty-nine weeks ended September 28, 2025, compared to $12.9 million in the same period of 2024[157]. - General and administrative expenses increased by $26.1 million, or 27.7%, to $120.1 million for the first three quarters of 2025, primarily due to increased share-based compensation and store closure costs[143]. - Total other expense, net, for the first three quarters of 2025 was $116.3 million, which included interest expense of $116.7 million[146]. Cash Flow and Liquidity - The company had negative cash flows from operations of $54.7 million for the thirty-nine weeks ended September 28, 2025, compared to $45.8 million in the same period of 2024[157]. - As of September 28, 2025, the company's cash and restricted cash balance was $22.7 million, down from $67.4 million as of December 29, 2024[162]. - Net cash used in operating activities increased by $8.9 million to $54.7 million for the thirty-nine weeks ended September 28, 2025, compared to $45.8 million in the same period of fiscal 2024[164]. - Net cash used in investing activities decreased by $21.3 million to $4.7 million for the thirty-nine weeks ended September 28, 2025, from $26.0 million in the same period of fiscal 2024[165]. - Net cash provided by financing activities decreased by $31.9 million to $14.7 million for the thirty-nine weeks ended September 28, 2025, compared to $46.6 million in the same period of fiscal 2024[166]. Company Operations - The company operated approximately 2,300 locations, with about 92% being franchised as of September 28, 2025[135]. - The cost of restaurant and factory revenues decreased by $7.2 million, or 2.4%, to $288.8 million for the first three quarters of 2025, attributed to the closure of underperforming locations[144]. Dividends and Shareholder Returns - During the thirty-nine weeks ended September 28, 2025, the company declared and paid cash dividends totaling $2.9 million on its Series B Cumulative Preferred Stock[167]. - The company has paused the payment of cash dividends on its Series B Cumulative Preferred Stock beginning with the monthly dividend period for April 2025[167]. - The declaration and payment of future dividends are subject to the discretion of the Board of Directors and depend on various financial factors[168]. Financial Health and Concerns - As of September 28, 2025, the company had an accumulated deficit of $611.8 million[157]. - There is substantial doubt about the company's ability to continue as a going concern for the twelve-month period following the issuance of the financial statements[161]. - Without restructuring of debt or relief from noteholders, the company will not be able to meet cash obligations for the next twelve months[161]. - The effective income tax rate for the first three quarters of 2025 was (2.1)%, compared to (4.8)% for the same period in 2024[147]. - The company does not have any material commitments for capital expenditures as of September 28, 2025[169].