FAT Brands Inc. (NASDAQ: FAT) Q2 2025 Earnings | 08/01/2025

Описание: FAT Brands Inc. announced its financial results for the second quarter of 2025, reporting total revenue of $146.8 million—a 3.4% decrease from $152.0 million in Q2 2024. The company posted a net loss of $54.2 million, or $3.17 per diluted share, widening from a net loss of $39.4 million ($2.43 per share) a year earlier. Adjusted EBITDA remained flat year-over-year at $15.7 million, while adjusted net loss increased to $49.0 million ($2.88 per share) versus $30.9 million ($1.93 per share) in the prior year. Persistent cost pressures, including a 50.3% jump in general and administrative expenses to $44.4 million (largely due to higher share-based compensation and lower Employee Retention Credits), negatively impacted profitability. Interest expense rose to $39.4 million, reflecting the company's significant debt load.

Despite these headwinds, FAT Brands maintained operational momentum—opening 18 new restaurants and keeping pace with its goal of over 100 new openings in 2025, underpinned by a pipeline of approximately 1,000 signed franchise agreements. However, system-wide sales declined 3.7% and same-store sales fell 3.9%, with softness in established locations outside the pizza and snack segments. Digital transformation efforts yielded growth, with digital sales at Great American Cookies making up 25% of the brand’s total and loyalty-driven sales climbing 40%. Similarly, Round Table Pizza saw loyalty-driven sales expand 21% and customer engagement rise 18%.

Management highlighted strategic moves such as refranchising, the closure of underperforming Smokey Bones locations, and a focus on expanding manufacturing capacity. Recent cost-cutting initiatives are projected to deliver $30–40 million in annual cash flow savings, complemented by additional $5 million cost reductions and ongoing debt restructuring efforts. The company declared a $2.31 million preferred dividend but paused common dividends in accordance with bondholder agreements.

Looking ahead, FAT Brands reiterated its confidence in achieving positive cash flow by emphasizing cost discipline, accelerating franchise growth, and expanding brand partnerships to reinforce its position as a leading multi-brand restaurant operator.

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