Q1 2024 FAT Brands Inc Earnings Call Transcript
Key Points
- FAT Brands Inc reported a significant increase in total revenue, up 43.8% to $152 million in Q1 2024, driven by strategic acquisitions and new restaurant openings.
- The company saw a system-wide sales growth of 4.8% in Q1, reaching $581.8 million, indicating strong performance across its brands.
- FAT Brands Inc continues to expand aggressively, with plans to open between 125 and 150 new units in 2024, potentially increasing by 20% from 2023.
- The acquisition of Smokey Bones is expected to contribute approximately $10 million to annual adjusted EBITDA, enhancing the company's financial strength.
- FAT Brands Inc is actively pursuing growth through acquisitions and strategic expansions, such as the planned conversion of Smokey Bones locations into Twin Peaks, which is expected to significantly increase the footprint and sales.
- Despite revenue growth, FAT Brands Inc reported a net loss of $38.3 million in Q1 2024, which is higher than the $32.1 million loss in the previous year.
- The company's adjusted EBITDA decreased to $18.2 million in Q1 2024 from $19.2 million in the same quarter last year, indicating some challenges in profitability.
- FAT Brands Inc is experiencing increased costs and expenses, which rose 45.6% in Q1, primarily due to the acquisition of Smokey Bones.
- The company's debt levels remain a concern, with significant interest expenses impacting financial stability.
- Operational challenges such as weather impacts and delays in new store openings could affect the company's ability to meet its growth targets.
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the FAT Brands first-quarter 2024 earnings conference call. At this time, all participants have been placed in a listen only mode. Please note that this conference is being recorded today, May 1, 2024.
On the call from FAT Brands are the Chairman of the Board, Andy Wiederhorn; and Co-Chief Executive Officer and Chief Financial Officer, Ken Kuick.
This afternoon, the company made its first-quarter 2024 financial results publicly available. Please refer to the earnings release and earnings supplement, both which are available in the Investors section of the Company's website at www.fatbrands.com.
Each contain additional details about the first quarter. But before we begin, I must remind everyone that part of the discussion today will be including forward looking statements. These forward-looking statements are not guarantees of future performance and therefore, undue reliance should not be placed upon them. Actual results may differ
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