Q3 2024 FAT Brands Inc Earnings Call Transcript
Key Points
- FAT Brands Inc (FAT) reported a 31.1% increase in total revenue, reaching $143.4 million, primarily driven by the acquisition of Smokey Bones.
- The company achieved system-wide sales of $600.7 million in Q3, marking a 6.4% increase year over year.
- FAT Brands Inc (FAT) opened 22 new units during the quarter, with plans to open approximately 40 more units in Q4, aiming for over 100 new units by year-end.
- The Twin Peaks brand continues to perform well, with company-operated lodges achieving average unit volumes of approximately $6 million annually.
- The company is leveraging its Georgia-based manufacturing facility, which generated $3.5 million of adjusted EBITDA on $9.5 million in sales, operating at 40-45% capacity.
- Adjusted EBITDA decreased to $14.1 million from $21.9 million in the corresponding quarter last year.
- Net loss was $44.8 million, or $2.74 per diluted share, compared to a net loss of $24.7 million, or $1.59 per diluted share, in the prior year quarter.
- Smokey Bones, a corporate-owned system, has not performed well since acquisition, impacting overall financial results.
- The company is facing increased costs and expenses, including a 41% rise in general and administrative expenses due to the Smokey Bones acquisition and litigation fees.
- FAT Brands Inc (FAT) is dealing with legal expenses and is working towards resolving ongoing legal issues, which are expected to persist for another 12 months.
Good afternoon. Ladies and gentlemen, thank you for standing by. Welcome to the Fat Brands Inc third quarter, 2024 earnings conference call.
(Operator Instructions) Please note that this conference is being recorded today, October 30 2024.
On the call from FAT Brands are Chairman of the board, Andrew Wiederhorn and Co Chief Executive Officer and Chief Financial Officer Ken Kuick.
This afternoon, the company made its third quarter 2024 financial results publicly available. Please refer to the earnings release and earnings supplement. Both of which are available in the investors section of the company's website at www.fatbrands.com.
Each contains additional details about the third quarter. But before we begin, I must remind everyone that part of the discussion today will include forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore undue line should not be placed upon them.
Actual results may differ materially from those indicated by
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