Fat Brands ( (FAT) ) has realeased its Q3 earnings. Here is a breakdown of the information Fat Brands presented to its investors.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
FAT Brands Inc., a global franchising company, operates in the restaurant sector by acquiring and developing various dining concepts worldwide. The company is known for its diverse portfolio of brands, spanning fast casual to polished casual dining, and manages around 2,300 locations globally.
In the third quarter of 2024, FAT Brands reported a notable increase in total revenue by 31.1% to $143.4 million, driven by the acquisition of Smokey Bones and new restaurant openings. Despite this revenue growth, the company faced a net loss of $44.8 million, which was significantly higher compared to the same period last year.
Key financial highlights include a 6.4% growth in system-wide sales and the opening of 22 new stores during the quarter. However, challenges persist with a year-to-date decline of 2.7% in same-store sales and a decrease in EBITDA from $10.8 million in the previous year to $1.7 million in the current quarter. The company’s strategic focus on the Twin Peaks brand is evident, with plans for further growth and potential IPO considerations for Twin Peaks and Smokey Bones as a standalone entity.
Looking ahead, FAT Brands remains committed to expanding their footprint, with 225 development deals signed year-to-date and a pipeline of approximately 1,000 locations. The management expressed optimism about the strategic opportunities to unlock value for shareholders, indicating a focused approach on refining their financial structure to support future growth initiatives.
