Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $142 million, reflecting a 6.5% decrease from $152 million in the same period last year [12][30] - Adjusted EBITDA was $11.1 million compared to $18.2 million in the prior year quarter [13][32] - Net loss attributable to FAT Brands was $46 million or $2.73 per diluted share, compared to a net loss of $38.3 million or $2.37 per share in the prior year [31] Business Line Data and Key Metrics Changes - Domestic system-wide sales outperformed international sales, with system-wide sales totaling $571.1 million, down 1.8% year-over-year [13] - The Casual Dining segment saw same-store sales increase approximately 1.6%, driven by Buffalo's Cafe and Ponderosa and Bonanza locations [14] - Factory revenue was off about 7%, attributed to lower same-store sales and the absence of Smoky Bones locations [53] Market Data and Key Metrics Changes - The company observed an encouraging rebound in international locations towards the end of Q1, indicating potential for future growth [13] - Digital sales at Roundtable Pizza increased by 5% sequentially from Q4 2024 to Q1 2025 [16] Company Strategy and Development Direction - The growth strategy is based on three elements: organic expansion with over 1,000 new locations in the pipeline, strategic acquisitions, and enhancing production capabilities [14][15] - The company is focused on reducing leverage and improving cash flow, with plans to raise between $75 million and $100 million in equity in 2025 [10][11] - A remodeling initiative aims to refresh 5% of all stores in 2025, increasing to 10% in 2026 [19] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer confidence is mixed, with consumers being apprehensive and focused on value [40][41] - The company is optimistic about achieving its full annual equity target raise over the next twelve months despite current market volatility [10][11] - Management expects to see a significant reduction in litigation expenses in Q2 2025 [60] Other Important Information - The company has initiated a comprehensive executive search for a new CEO following the transition of Joe Hummel [9][73] - The foundation has awarded 10 grants in 2025, indicating a commitment to community engagement [28] Q&A Session Summary Question: Impact of cookie facility utilization increase - Management aims to increase the cookie facility's revenue from $15 million to $25 million annually with improved utilization [34][35] Question: Consumer focus on value - Management acknowledged that consumer confidence is event-driven and emphasized the importance of providing a great experience to justify prices [40][41] Question: Delay in equity raise post-Twin Peaks IPO - Management indicated that there is no immediate pressure to raise funds and is waiting for market conditions to improve [43][44] Question: Year-over-year impact of Smoky Bones - Management estimated a couple million dollars negative impact from Smoky Bones on adjusted EBITDA [66][67] Question: Timeline for new CEO search - Management stated that the executive search is progressing well and should conclude soon [73][74] Question: Incremental adjusted EBITDA from new stores and factory - Management expects to achieve the targeted incremental adjusted EBITDA over the next couple of years [76]

Core Viewpoint - The company, Haoyang Co., experienced a significant decline in both revenue and net profit in 2024, indicating challenges in adapting to changing market conditions amid global economic uncertainties [1][4]. Revenue and Profit Decline - In 2024, Haoyang Co. reported revenue of approximately 1.212 billion yuan, a decrease of 7.12% from 1.305 billion yuan in 2023 [4]. - The net profit attributable to shareholders fell to 302 million yuan, down 17.61% from 366 million yuan in the previous year [4]. - This marks the first instance of simultaneous revenue and profit decline since 2020, highlighting the company's insufficient response to market changes [4]. R&D Investment and Short-term Impact - Despite the decline in performance, Haoyang Co. maintained its investment in research and development, totaling approximately 85.85 million yuan in 2024 [5]. - The company holds 765 domestic patents, 194 international patents, and 429 software copyrights, indicating a strong focus on innovation [5]. - However, the short-term economic benefits from these R&D efforts have not materialized, as evidenced by the continued decline in revenue and profit [5]. Brand Expansion and Overseas Market Risks - Haoyang Co. made significant strides in brand expansion, particularly in overseas markets, including the acquisition of Danish SGM company assets and the establishment of wholly-owned subsidiaries in Denmark and the U.S. [6]. - Participation in international trade shows, such as the Barcelona ISE and Frankfurt PROLIGHT+SOUND, has been part of the company's strategy to enhance its global presence [6]. - Nonetheless, the expansion into overseas markets introduces new risks, including economic slowdown and geopolitical tensions, which could impact stable performance growth [6].

Financial Data and Key Metrics Changes - In Q4, revenues increased by 5% to $932 million, with an adjusted growth of 14% when accounting for currency and last year's extra week [12][53] - For the full year, revenues grew by 8% in U.S. dollars to $3 billion, and by 10% in constant currency [21] - Adjusted earnings per share (EPS) for Q4 was $1.48, down from $2.01 in the previous year [66] Business Line Data and Key Metrics Changes - The Rag & Bone acquisition contributed 9 points to the 14% growth, while the core guest business added 5 points [12] - The licensing business grew by 18% in Q4, driven by strong performance in footwear, fragrances, handbags, and eyewear [15][61] - The Americas retail business saw a 14% constant currency comp decline, while the European retail business had a 5% constant currency comp increase [15][56] Market Data and Key Metrics Changes - In Europe, revenues grew by 2% to $494 million, with a constant currency growth of 13% [53] - Asia revenues decreased by 15% to $70 million, with a constant currency decline of 4% [60] - The U.S. and Canadian guest stores experienced a 14% comp decline, while e-commerce in the region also faced challenges [15][56] Company Strategy and Development Direction - The company aims to strengthen brand awareness and customer engagement, focusing on improving retail store and e-commerce productivity [22][51] - Plans include optimizing the business model, enhancing product offerings, and expanding into new markets such as India and the Middle East [22][43] - The company is exploring the integration of its infrastructures across different regions to improve cost structure and profitability [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflationary pressures, traffic declines in retail stores, and the impact of the U.S. dollar on revenues and margins [10][70] - For fiscal year 2026, the company expects revenue growth between 3.9% and 6.2%, with adjusted operating margins between 4.5% and 5.4% [47][79] - Management remains optimistic about growth opportunities, particularly with the Rag & Bone brand and the new Guess Jeans initiative [44][120] Other Important Information - The company plans to close approximately 20 non-strategic stores in North America by the end of the year [39][76] - A new Chief Financial Officer, Alberto Toni, will join the company in June, bringing extensive experience [24] - The company ended the quarter with $563 million in inventory, a 21% increase, largely due to the Rag & Bone acquisition [66] Q&A Session Summary Question: What are the drivers for Rag & Bone's growth? - Management expressed excitement about the Rag & Bone acquisition, highlighting strong e-commerce performance and plans for new store openings in Europe and North America [90][92] Question: What is the strategy for the Americas business? - Management discussed plans to improve retail productivity through exclusive product collections and a speed-to-market model to capitalize on current trends [100][102] Question: What opportunities exist for Guess Jeans? - Management noted strong initial performance in Europe and plans for expansion in the U.S. and Japan, emphasizing the brand's alignment with younger consumers [120][129]