Company Leadership Changes - Andrew Wiederhorn has returned as Chief Executive Officer of FAT Brands, while continuing as Chairman of the Board [1][2] - Ken Kuick will focus solely on his role as Chief Financial Officer, and Taylor Wiederhorn will remain as Chief Development Officer [1] Strategic Focus - The company aims to build on its momentum through organic expansion, targeted acquisitions, increasing manufacturing capacity, and focusing on its balance sheet [2] - FAT Brands is positioned as a global leader in the restaurant industry [2] Company Overview - FAT Brands is a leading global franchising company that owns and operates 18 restaurant brands, including Fatburger and Johnny Rockets, with over 2,300 units worldwide [3]

Core Insights - FAT Brands Inc. has opened its first co-branded Round Table Pizza and Fatburger location in Rancho Cordova, California, allowing customers to enjoy a diverse menu that includes custom-built burgers, fries, and milkshakes [1][2] Company Overview - FAT Brands is a leading global franchising company that owns and operates 18 restaurant brands, including Round Table Pizza and Fatburger, with over 2,300 units worldwide [3] - Round Table Pizza has been recognized for its commitment to quality and authenticity for over 60 years, operating approximately 400 restaurants across the United States [4] - Fatburger, a Hollywood favorite, has a legacy of over 70 years, known for its customizable burgers and strong customer loyalty, including a fan base of celebrities and athletes [5] Strategic Initiatives - The opening of the co-branded location represents a strategic growth initiative for FAT Brands, with plans to expand this model throughout California [2] - The grand opening celebration on August 9 includes promotional offers such as free Original Fatburgers for the first 100 customers and complimentary fries with any purchase [2] Location Details - The new restaurant is located at 2234 Sunrise Blvd., Rancho Cordova, CA 95670, with operating hours from 11:00 a.m. to 9:00 p.m. Sunday through Thursday, and 11:00 a.m. to 10:00 p.m. on Friday and Saturday [3]

Core Viewpoint - FAT Brands has reached a settlement to resolve two stockholder derivative lawsuits without admitting liability, while implementing corporate governance changes and receiving financial compensation [1][2][3] Group 1: Lawsuit Details - The derivative lawsuits were filed in June 2021 and March 2022, related to a merger and recapitalization [1] - The lawsuits involved claims against current and former directors and officers of the Company [1] Group 2: Settlement Terms - The settlement includes a $10 million payment from the Company's insurers, with plaintiffs' counsel fees deducted [2] - Fog Cutter Holdings LLC will contribute 200,000 shares of Twin Hospitality Group Inc. to the Company as part of the settlement [2] - The settlement is subject to court approval and non-objection by the United States [3] Group 3: Company Overview - FAT Brands is a global franchising company that owns 18 restaurant brands and operates over 2,300 units worldwide [4] - The Company focuses on fast casual, quick-service, casual dining, and polished casual dining concepts [4]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were $146.8 million, a 3.4% decrease from $152 million in the same quarter last year, primarily due to the closure of underperforming locations and lower same-store sales [25] - General and administrative expenses increased to $44.4 million from $29.6 million, largely due to non-cash share-based compensation related to the public listing of Twin Hospitality Group [25] - Net loss attributable to FAT Brands was $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 prior year quarter [26] Business Line Data and Key Metrics Changes - The closure of five underperforming Smoky Bones locations impacted revenue, while new Twin Peaks Lodges partially offset this decline [25] - Adjusted EBITDA for the quarter remained flat at $15.7 million, comparable to the previous year [26] - The snacks segment, including Great American Cookies and Marble Slab Creamery, showed consistent strength, with digital sales for Great American Cookies increasing to 25% of total sales [13][14] Market Data and Key Metrics Changes - Domestic system-wide sales outperformed international sales, although there were positive signs internationally, particularly for Fatburger locations in Canada [12][13] - The company operates approximately 2,300 locations across 49 states and 35 countries, with 80% in domestic markets and 20% internationally [7] Company Strategy and Development Direction - The growth strategy is anchored by three pillars: organic expansion, targeted acquisitions, and increasing manufacturing capacity, particularly in cookie dough production [14] - The company plans to open 100 new locations in 2025, with a robust development pipeline of approximately 1,000 locations committed by franchisees over the next five to seven years [15] - The company is also focusing on enhancing the guest experience through innovation and menu development, as well as revitalizing existing locations through a Store Refresh program [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future following the resolution of legal issues, which will save approximately $30 million annually in litigation costs [11][26] - There are encouraging signs of improved consumer confidence, particularly in the snack brands, while QSR brands face challenges [34][54] - The company is working towards achieving cash flow positive status in the coming quarters while continuing strategic deleveraging efforts [12][41] Other Important Information - The company has reached a settlement in the Delaware derivative cases, which is subject to court approval [6] - The Georgia production facility generated $10.3 million in sales with a 37% margin, currently operating at 45% capacity, indicating significant growth potential [21] Q&A Session Summary Question: Update on SEC civil action following DOJ announcement - Management is hopeful the SEC investigation will also conclude favorably following the DOJ case, and they have filed for recovery of legal fees through insurance [29][30] Question: Increase in G&A costs and future expectations - The increase in G&A costs is a one-time event related to the Twin Peaks spin-off, and costs are expected to decrease moving forward [30][31] Question: Timing for the rollout of the new manufacturing contract - The new manufacturing contract is currently in production and is expected to be fully rolled out within the next 30 to 60 days [32][33] Question: Observations on restaurant industry traffic - Different brand categories are experiencing varied performance, with snack brands performing well while QSR brands face challenges [34] Question: Current liquidity situation - The company has retained notes valued between $130 million and $150 million for liquidity, and is focused on identifying further savings across all brands [41][42]

Core 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]

Core Viewpoint - The Justice Department has dropped all charges against Fat Brands and its chair Andy Wiederhorn, allowing the company to focus on growth and success moving forward [1][3]. Legal Proceedings - In May 2024, Fat Brands and Wiederhorn were indicted on charges including wire fraud and tax evasion, related to a loan scheme that allegedly netted Wiederhorn $47 million [1]. - Federal prosecutors have filed to dismiss all charges against Wiederhorn and two others, maintaining that Wiederhorn has consistently claimed his innocence since the indictment [2]. - The DOJ also requested the dismissal of separate criminal charges against Wiederhorn for being a federal felon in possession of a handgun and ammunition [4]. Company Background - Wiederhorn stepped down as CEO of Fat Brands in 2023 amid an SEC investigation related to the same conduct that led to the DOJ charges [3]. - Fat Brands owns several well-known restaurant brands, including Fatburger, Johnny Rockets, and Great American Cookies [2]. Market Reaction - Following the news of the charges being dropped, shares of Fat Brands increased by 7%, with the company's market capitalization reported to be less than $43 million [6]. Political Context - The DOJ's decision comes after a shakeup in the agency following President Donald Trump's second term, which included the dismissal of the assistant U.S. attorney leading the prosecution against Wiederhorn [5]. - Notably, Fat Brands had previously donated $100,000 to Trump's inauguration fund [6].

Company Overview - FAT Brands Inc. is a global restaurant franchising company with a portfolio of 18 restaurant concepts and over 2,300 locations worldwide [2][3] - The company operates well-known brands such as Fatburger, Johnny Rockets, Round Table Pizza, and Twin Peaks [2][3] Legal Developments - The U.S. Attorney for the Central District of California has filed a motion to dismiss all charges against Andrew Wiederhorn and other defendants, asserting that there were no victims, losses, or crimes involved [1][2] - Andy Wiederhorn expressed gratitude towards the U.S. Attorney's Office for reviewing the case and emphasized the company's focus on growth following the dismissal of the indictment [2] Growth Prospects - With the legal matter resolved, FAT Brands is positioned for continued growth, with over 1,000 units in its development pipeline and approximately 120 signed development agreements year-to-date [2] - The company anticipates more than 100 new store openings within the current year, indicating a robust expansion strategy [2]

Company Overview - FAT Brands Inc. is a leading global franchising company that owns and operates 18 restaurant brands, including Round Table Pizza, Fatburger, Johnny Rockets, and Twin Peaks [4] - The company has over 2,300 units worldwide, focusing on fast casual, quick-service, casual dining, and polished casual dining concepts [4] Financial Results Announcement - The company will host a conference call to review its second quarter 2025 financial results on July 30, 2025, at 4:30 PM ET [1] - A press release with the financial results will be issued prior to the conference call on the same day [1] Conference Call Access - The conference call can be accessed live via phone or webcast, with specific dial-in numbers provided for U.S. and international participants [2][3] - A replay of the call will be available until August 20, 2025, with details on how to access the replay also provided [2]

Group 1 - Fatburger is celebrating National French Fry Day with a week-long promotion offering free Fat or Skinny Fries with any online burger or sandwich purchase from July 9 to July 13 [1][2] - The promotion emphasizes the importance of fries as a staple side dish, highlighting their quality and pairing options with various burgers and milkshakes [2] - FAT Brands, the parent company of Fatburger, operates 18 restaurant brands and has over 2,300 units worldwide, indicating a strong market presence [4] Group 2 - Fatburger has a legacy of over 70 years, known for its custom-built burgers and a loyal customer base that includes celebrities and athletes [5] - The restaurant chain focuses on providing a contemporary dining experience while maintaining high standards of quality and taste [5]

Company Overview - FAT Brands Inc. is a leading global franchising company that owns and operates 18 restaurant brands including Round Table Pizza, Fatburger, Johnny Rockets, and Twin Peaks [3] - The company has approximately 2,300 units worldwide, focusing on fast casual, quick-service, casual dining, and polished casual dining concepts [3] Upcoming Event - Andy Wiederhorn, Chairman, and Ken Kuick, Co-CEO and CFO of FAT Brands, will present at Noble Capital Markets' Emerging Growth Virtual Equity Conference on June 5, 2025, at 1:00 PM Eastern Standard Time [1] - Registered, qualified investor attendees will have the opportunity for scheduled 1x1 meetings with the company [1] Event Accessibility - Attendees can register for the live presentation at no cost [2] - A video webcast of the presentation will be available on the company's website and on Channelchek for 90 days following the event [2]