Fat Brands ( (FAT) ) has released its Q1 earnings. Here is a breakdown of the information Fat Brands presented to its investors.
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FAT Brands Inc. is a global franchising company known for acquiring, marketing, and developing a variety of restaurant concepts, including fast casual and polished casual dining, with a portfolio of 18 brands and approximately 2,300 units worldwide.
In its first quarter of 2025, FAT Brands reported a decline in total revenue by 6.5% to $142 million compared to the previous year, alongside a net loss of $46 million. Despite these setbacks, the company opened 23 new locations and remains committed to expanding its presence with over 100 planned openings for the year.
Key financial highlights include a system-wide sales decline of 1.8% and a same-store sales decline of 3.4%. The company also completed a significant strategic move with the spin-off of Twin Hospitality Group, delivering a $50 million dividend to shareholders. Additionally, the refranchising of Fazoli’s restaurants and international expansion plans in France are set to bolster growth.
Looking ahead, FAT Brands is focused on enhancing its financial flexibility and operational efficiencies. The company’s strategy to return to a nearly 100% franchised model and its ongoing international expansion efforts are expected to drive sustainable growth and increase shareholder value.