FAT Brands(US:FAT) Globenewswire·2025-07-30 20:05Core Insights - FAT Brands reported a total revenue of $146.8 million for the fiscal second quarter of 2025, a decrease of $5.2 million or 3.4% compared to the same period in the previous year [5][6] - The company experienced a net loss of $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 fiscal second quarter of 2024 [6][10] - The company opened 18 new locations during the second quarter and aims for over 100 restaurant openings in 2025, supported by a pipeline of approximately 1,000 signed deals [2][5] Financial Performance - Total revenue decreased by 3.4% to $146.8 million from $152.0 million in the fiscal second quarter of 2024, primarily due to the closure of five underperforming Smokey Bones locations and lower same-store sales [5][6] - System-wide sales declined by 3.7%, and same-store sales decreased by 3.9% [6] - Adjusted EBITDA remained stable at $15.7 million for both the fiscal second quarter of 2025 and 2024 [6][27] Cost Management - General and administrative expenses increased by 50.3% to $44.4 million, primarily due to increased share-based compensation [7] - Cost of restaurant and factory revenues decreased by 2.1% to $98.1 million, reflecting reduced costs at company-owned restaurants [8] - Advertising expenses decreased by $3.1 million to $11.5 million compared to the prior year [9] Strategic Initiatives - The company is focusing on expanding its manufacturing capacity and pursuing strategic partnerships to enhance brand reach and manufacturing capabilities [2] - Digital sales at Great American Cookies now account for 25% of total revenue, with loyalty-driven sales up 40% [2] - The company has secured a bondholder agreement to convert amortizing bonds to interest-only, generating an additional $30 to $40 million in annual cash flow savings [2]