Financial Data and Key Metrics Changes - Total system-wide sales for the quarter were $170.7 million, a 3.3% decrease from the previous year [13] - Total revenue was $82.3 million, down 1.6% from $83.7 million in the prior year [13] - Net loss for the quarter was $24.5 million, compared to $16.2 million in the previous year [16] - Adjusted EBITDA increased to $3 million, compared to $2.3 million in the prior year [16] Business Line Data and Key Metrics Changes - Twin Peaks revenue was $50.3 million, up 5.3% from $47.8 million in the prior year, driven by new lodge openings [13] - Smokey Bones revenue was $32 million, down 10.8% from $35.9 million in the prior year, reflecting strategic conversions and closures [14] - Twin Peaks restaurant-level contribution margin increased to 17%, up from 16.3% in the previous year [15] - Smokey Bones restaurant-level contribution margin was negative 0.3%, down from positive 0.3% in the previous year [15] Market Data and Key Metrics Changes - Comparable sales for Twin Peaks declined by 4.1%, influenced by immigration-related issues, particularly in the San Antonio market [13] - System-wide weekly sales averaged $11.3 million over the past 12 weeks, indicating steady performance despite challenges [7] Company Strategy and Development Direction - The company is focused on operational excellence, strengthening margins, and positioning for sustained growth [3] - A strategic conversion program is underway to transform Smokey Bones locations into high-performing Twin Peaks lodges [9] - The company has identified 19 prime conversion candidates for transformation into Twin Peaks lodges [10] - A new partnership with Camp Hope supports veterans, enhancing community engagement [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full annual equity target range to support debt reduction and growth investments [17] - The upcoming fourth quarter is expected to benefit from a strong sports calendar, including college football playoffs [17] - Operational improvements and cost discipline initiatives are anticipated to continue driving margin expansion [17] Other Important Information - The company has strengthened its executive team with key appointments and promotions to enhance operational performance [4][5][6] - The closure of underperforming units and improved financial visibility are part of the strategic plan for Smokey Bones [11] Q&A Session Summary - No questions were taken following the prepared remarks, and the call concluded without a Q&A session [2][20]

Financial Data and Key Metrics Changes - Total system-wide sales for the quarter were $170.7 million, a 3.3% decrease from the previous year [13] - Total revenue was $82.3 million, down 1.6% from $83.7 million in the prior year [13] - Net loss for the quarter was $24.5 million, compared to $16.2 million in the previous year [16] - Adjusted EBITDA increased to $3 million, compared to $2.3 million in the prior year [16] Business Line Data and Key Metrics Changes - Twin Peaks revenue was $50.3 million, up 5.3% from $47.8 million in the prior year, driven by new lodge openings [14] - Smoky Bones revenue was $32 million, down 10.8% from $35.9 million in the prior year, reflecting strategic conversions and closures [14] - Twin Peaks restaurant-level contribution margin increased to 17%, up from 16.3% in the previous year [15] - Smoky Bones restaurant-level contribution margin was negative 0.3%, down from positive 0.3% in the prior year [15] Market Data and Key Metrics Changes - Comparable sales for Twin Peaks declined by 4.1%, influenced by immigration-related issues in the San Antonio market [13] - System-wide weekly sales averaged $11.3 million over the past 12 weeks, indicating steady performance despite challenges [7] Company Strategy and Development Direction - The company is focused on operational excellence, strengthening margins, and positioning for sustained growth [3] - A strategic conversion program is underway to transform underperforming Smoky Bones locations into Twin Peaks lodges [9] - The company has identified 19 prime conversion candidates for transformation into Twin Peaks lodges [10] - A new Twin Peaks prototype is being developed to reduce costs and complexity [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full annual equity targets to support debt reduction and growth investments [17] - The upcoming sports calendar is expected to drive continued engagement and sales [18] - Operational improvements and cost discipline initiatives are anticipated to continue driving margin expansion [17] Other Important Information - The company has strengthened its executive team with key appointments and promotions to enhance operational performance [4][5][6] - A partnership with Camp Hope has been established to support veterans struggling with PTSD [11] Q&A Session Summary - No questions were taken following the prepared remarks, as indicated by the operator [2]

Financial Data and Key Metrics Changes - Total system-wide sales for the quarter were $170.7 million, a 3.3% decrease from the previous year [13] - Total revenue was $82.3 million, down 1.6% from $83.7 million in the prior year [14] - Net loss for the quarter was $24.5 million, compared to $16.2 million in the previous year [17] - Adjusted EBITDA increased to $3 million, compared to $2.3 million in the prior year [17] Business Line Data and Key Metrics Changes - Twin Peaks revenue was $50.3 million, up 5.3% from $47.8 million in the prior year, driven by new lodge openings [14] - Smoky Bones revenue was $32 million, down 10.8% from $35.9 million in the prior year, reflecting the strategic conversion of locations [15] - Twin Peaks restaurant-level contribution margin increased 72 basis points to 17% [16] - Smoky Bones restaurant-level contribution margin was negative 0.3%, down from positive 0.3% in the previous year [16] Market Data and Key Metrics Changes - Comparable sales for Twin Peaks declined by 4.1%, influenced by immigration-related issues in the San Antonio market [14] - System-wide weekly sales averaged $11.3 million over the past 12 weeks, indicating steady performance despite external headwinds [7] Company Strategy and Development Direction - The company is focused on operational excellence, strengthening margins, and positioning for sustained growth [3] - A strategic conversion program is underway to transform underperforming Smoky Bones locations into high-performing Twin Peaks lodges [9] - The company has identified 19 prime conversion candidates for transformation into Twin Peaks lodges [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full annual equity target range to support debt reduction and growth investments [18] - The upcoming fourth quarter is expected to benefit from a strong sports calendar, including college football playoffs [18] - Operational improvements and cost discipline initiatives are anticipated to continue driving margin expansion [18] Other Important Information - The company has strengthened its executive team with key appointments and promotions to enhance operational performance [4][5] - A new partnership with Camp Hope supports veterans struggling with PTSD, reflecting the company's commitment to community engagement [11] Q&A Session Summary - No questions were taken following the prepared remarks, concluding the conference call [2][20]

We know that McDonald's has been trying to position themselves as one of the value choices in this economy as things get a little bit harder for people trying to buy lunch. Honestly, what did you make of these reports. Because it seems like the Street welcoming them with open arms.Yeah. Thank you so much for having me on today. I think we were pleased by the print this morning.Honestly, it's been a really difficult environment for consumer companies reporting earnings and in restaurants in particular. And r ...

Financial Data and Key Metrics Changes - In Q3 2025, the company reported revenue of $424 million, a 25% increase or $85 million compared to the same quarter last year [22][24] - Adjusted EBITDA for the quarter was $78 million, reflecting a 22% increase or $14 million year-over-year [24][25] - Adjusted EPS rose to $0.19, up from $0.16, marking a 19% increase from Q3 of the previous year [28] Business Line Data and Key Metrics Changes - Company-operated revenue reached $393 million, a 27% increase or $85 million year-over-year, with same shop sales growth of 7.4% driven by 6.8% transaction growth [25][26] - System-wide same shop sales growth was 5.7%, supported by a 4.7% increase in system transaction growth [22][23] Market Data and Key Metrics Changes - The company successfully expanded into six new states in 2025, bringing its total presence to 24 states [5][6] - The average unit volumes (AUVs) across the system reached record highs, indicating strong customer demand and brand appeal [5][19] Company Strategy and Development Direction - The company aims to open approximately 175 new system shops in 2026, with a long-term goal of 2,029 shops by 2029 [6][30] - The strategic focus includes enhancing the food program to drive breakfast and morning day part occasions, with plans to complete the rollout by the end of 2026 [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term durability of the business model and the effectiveness of transaction-driving initiatives, raising full-year guidance for total revenues and same shop sales growth [7][30] - The company noted that transaction growth has been consistent, marking the fifth consecutive quarter of growth, and highlighted the importance of culture and customer experience in driving sales [21][22] Other Important Information - The company has invested in advanced analytics and tools to maintain momentum as it scales, reinforcing its long-term financial model [20][30] - Coffee costs are expected to remain elevated into 2026, impacting margins, while labor costs are anticipated to be affected by regulatory changes in California [26][45] Q&A Session Summary Question: What are the key levers for traffic growth and future innovations? - Management believes there is significant runway in innovation, paid advertising, and the Dutch Rewards program, with ongoing efforts to segment customer offers [32][33] Question: How is the company performing among younger consumers? - The company reported strong performance among younger cohorts, with 75% of transactions coming from Dutch Rewards, indicating brand loyalty despite economic challenges [35] Question: Can you provide insights on customer feedback regarding the food program? - Customer and employee feedback has been positive, with improvements noted as the food program rolls out in new markets [36][37] Question: What is the impact of food on ticket dynamics? - The company noted a 4% comp lift in shops that have food, with a significant portion coming from transaction growth [40] Question: How has competition affected sales in new markets? - Management reported no negative impact from competitors in new markets, maintaining strong sales momentum [41] Question: What are the dynamics of the paid advertising efforts? - The company plans to continue ramping up paid advertising to build brand awareness and drive transactions through the Dutch Rewards program [54][55] Question: How is the mobile order and pay feature performing? - The mobile order mix reached 13%, with expectations for growth as new shops are rolled out [56][57] Question: What operational changes are needed for the food rollout? - The company is adding new equipment and training to ensure that food offerings do not slow down service, with positive throughput metrics observed [58][59]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 decreased by 0.5% year-over-year to $122.1 million [15] - Comparable sales grew by 4% in Q3, with an increase of 8% in October [5][16] - Average check increased by 4.6%, including a 2% effective pricing during the quarter [16] - Net loss for Q3 was $9.2 million, or a loss of $0.20 per diluted share, compared to a net loss of $6.8 million, or a loss of $0.15 per diluted share last year [18] - Adjusted EBITDA improved by $1.6 million, or approximately 33%, to $6.5 million [11][18] Business Line Data and Key Metrics Changes - Digital sales channel saw a meaningful year-over-year improvement, driven largely by third-party delivery, which increased by 12% [6] - Restaurant contribution margins improved by 40 basis points to 13.2% from 12.8% in Q3 2024 [16][18] - COGS as a percentage of sales was 25.7%, a 20 basis point increase from last year [17] Market Data and Key Metrics Changes - Company comp traffic decreased slightly by 0.6% in Q3, but was positive in the second half of the quarter [16] - Year-over-year traffic was positive over 1.5% quarter-to-date, extending a positive traffic trend that began midway through Q3 [9] Company Strategy and Development Direction - The company is focusing on closing underperforming restaurants to improve overall sales leverage and enhance profitability [10][20] - The introduction of the Delicious Duos platform is aimed at providing value while maintaining brand equity and profitability [7] - The company is executing a comprehensive cost-savings plan expected to deliver over $5 million in savings across its P&L in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path ahead, citing strong sales trends and the success of recent initiatives [4][6] - The company anticipates continued strength in sales and margins, particularly as it laps over a period of heavy promotions and discounts from the previous year [9][21] - Management is optimistic about the impact of restaurant closures on future profitability, expecting a positive contribution of over $2 million in 2026 [20][21] Other Important Information - The board of directors has initiated a review of strategic alternatives to explore ways to maximize shareholder value [15] - The company plans to introduce new menu items, including a collaboration with a popular candy bar, in December [13] Q&A Session Summary Question: Can you discuss the success of the Delicious Duos and its impact on value perception? - Management noted that Delicious Duos filled a value void and is mixing around 4-5% across restaurants, with positive value scores from guests [23][24] Question: How does the company account for organic traffic versus sales transfer from closed stores? - Management indicated that closures have contributed about a 1% lift in sales, with positive traffic outside of sales transfer [25] Question: What are the learnings from the Ramen limited-time offer (LTO)? - Management is encouraged by the trial and repeat business from the Ramen LTO and sees potential for it to be a permanent menu item [26][27]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $140 million, a 2.3% decrease from $143.4 million in the same quarter last year, primarily due to the closure of 11 underperforming Smokey Bones locations and lower same-store sales [16] - Adjusted EBITDA for the quarter was $13.1 million, compared to $14.1 million in the year-ago quarter [18] - Net loss attributable to FAT Brands 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 the prior year quarter [18] Business Line Data and Key Metrics Changes - Same-store sales performance improved, with a decline narrowed to 3.5% from 4.2% in the second quarter, marking the strongest quarterly performance this year [8] - The casual dining segment showed strong results with same-store sales growth of 3.9% [8] - The company opened 13 new locations during the third quarter and 60 locations year-to-date, with a target of 80 new openings for the year [8] Market Data and Key Metrics Changes - The restaurant industry continues to face headwinds, but the company is focused on strategic execution and enhancing shareholder value [7] - The company secured over 190 franchise development agreements year-to-date, contributing to approximately 900 committed locations scheduled to open over the next five to seven years [9] Company Strategy and Development Direction - The company is advancing plans for a $75-$100 million equity raise at Twin Peaks to pay down debt and fund new unit development [7] - The strategic pillars include organic expansion, targeted acquisitions, and manufacturing scale-up, particularly in cookie dough and dry mix production [8][9] - The company is focused on strengthening its financial position and capital structure while actively negotiating a debt restructuring with noteholders [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the restaurant industry, describing it as a "restaurant recessionary environment" but noted that the decline is manageable [23] - The company is optimistic about achieving positive cash flow in the coming quarters and reducing debt [7] - Management emphasized the importance of enhancing the guest experience in casual dining to justify pricing amidst rising labor and food costs [25][26] Other Important Information - The company has resolved various legal matters, including the dismissal of charges by the U.S. Department of Justice and the resolution of derivative cases, which are expected to save at least $30 million annually [5][7] - The FAT Brands Foundation has awarded 42 grants and provided over $170,000 in funding this year, promoting employee well-being and community support [14][15] Q&A Session Summary Question: Timing on debt restructuring negotiations - Management is hopeful for a resolution during the current quarter, pending government reopening [19] Question: Status of underperforming Smokey Bones closures - All planned closures have been completed, with some additional closures expected as part of a master lease review [20] Question: Update on Fazoli's refranchising efforts - Material progress has been made, with proposals under evaluation [21] Question: Target for new store openings - The target has been adjusted from 100 to 80 new stores due to slower franchisee openings [21] Question: Details on SG&A reduction - Reductions have come from staff and executive cuts, as well as consolidating operations [22] Question: Same-store sales growth in casual dining - Several brands, including Hurricane Grill & Wings and Ponderosa & Bonanza, are performing well in this category [25] Question: Future opening program for Twin Peaks - Active development is ongoing, with both corporate and franchise locations planned [27]

Core Insights - Dutch Bros (NASDAQ: BROS) reported a strong performance in the third quarter, exceeding both earnings and revenue expectations [1] Financial Performance - The company posted an adjusted earnings per share (EPS) of $0.19, surpassing the expected $0.17 [1] - Revenue for the quarter reached $423.58 million, exceeding the consensus estimate of $413.60 million [1]

1 Supplemental Earnings Slides Q3 2025 DISCLAIMER Forward-Looking Statements. Statements in this presentation and the accompanying oral presentation that are not statements of historical fact are forward-looking statements. Such forward-looking statements include, without limitation, statements regarding the Company's future results of operations or financial condition, including guidance for 2025, new shop openings, business strategy and plans, objectives of management for future operations, and potential ...

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