FAT Brands Inc. Financial Overview for Second Quarter 2025
Join the live conference call today at 4:30 p.m. ET
LOS ANGELES — FAT Brands Inc. (NASDAQ: FAT) has released its financial results for the second quarter of 2025, concluding on June 29. As the company remains committed to expanding its market presence, this quarter highlights both achievements and challenges.
Chairman Andy Wiederhorn expressed optimism about the company's growth trajectory, noting, "With a solid pipeline of approximately 1,000 signed agreements, we've successfully launched 18 new locations this quarter alone. This includes the introduction of three co-branded stores featuring Marble Slab Creamery and Great American Cookies. We are aiming to surpass 100 new openings this year."
In Florida, the company has signed a significant development deal aimed at launching an additional 40 Fatburger outlets over the next decade. This expansion is expected to enhance its Florida footprint to around 50 locations in total. Wiederhorn added, "Our diversified portfolio strategy is truly yielding results, prominently showcased by robust performance within our snacks segment. Digital sales are also on the rise, improving customer loyalty at Great American Cookies by 40%, which now constitutes 25% of total revenue."
Ken Kuick, Co-CEO and CFO of FAT Brands, conveyed the company's focus on improving its financial status. He stated, "We've made strategic decisions to reinforce our financial footing, including a bondholder agreement that transitions amortizing bonds to interest-only. This initiative is projected to save us an added $30 to $40 million annually. While we have enacted a pause on dividends until we reach a $25 million threshold for principal reduction, this measure ensures we preserve between $36 and $40 million each year."
Moreover, the company has taken steps to reduce general and administrative expenses by over $5 million annually and is proactively working to refinance its remaining securitization silos ahead of their maturity in July 2026.
Financial Highlights of Q2 2025
FAT Brands reported a decline in total revenue of 3.4%, reaching $146.8 million compared to $152.0 million for the same quarter in the previous year. The decrease can primarily be attributed to challenges impacting restaurant revenues. These include the closure of five underperforming Smokey Bones locations and reduced same-store sales, further offset by new openings of Twin Peaks lodges.
Notable financial metrics from this quarter include:
- A net loss of $54.2 million, or $3.17 per diluted share, an increase from a net loss of $39.4 million, or $2.43 per diluted share last year.
- Negative EBITDA of $6.0 million, contrasting with a $6.8 million EBITDA from the same quarter in 2024.
- Adjusted EBITDA of $15.7 million for both Q2 2025 and the prior year.
- Adjusted net loss of $49.0 million, translating to $2.88 per diluted share, marking a decline compared to $30.9 million, or $1.93 per diluted share in the previous year.
Strategic Focus on Capacity Expansion
Citing future growth potential, Taylor Wiederhorn, Co-CEO, emphasized the importance of expanding manufacturing capacity to support increasing demand. The company is actively seeking strategic partnerships to enhance brand visibility and improve manufacturing capabilities.
Upcoming Conference Call
FAT Brands will provide a detailed discussion of its Q2 financial results through a conference call and webcast, which will be held today at 4:30 PM ET. The session will include discussions led by Andy Wiederhorn and Ken Kuick.
Those interested can join the call by calling 1-877-704-4453 domestically or 1-201-389-0920 from other locations. A replay will be available until August 20, 2025, by dialing 1-844-512-2921 (US) or 1-412-317-6671 (International). Use passcode 13754156 for access. The webcast will be available on the FAT Brands website in the Investors section shortly after the conference ends.
About FAT Brands Inc.
FAT Brands, trading under NASDAQ: FAT, is a prominent global franchising company that focuses on acquiring and developing diverse fast-food and casual dining concepts. The portfolio currently consists of 18 established restaurant brands, including Round Table Pizza, Fatburger, Marble Slab Creamery, and more, collectively comprising approximately 2,300 units worldwide.
Frequently Asked Questions
What were the recent financial results for FAT Brands?
FAT Brands reported a total revenue of $146.8 million for Q2 2025, with a net loss of $54.2 million.
How many new stores did FAT Brands open recently?
The company successfully opened 18 new locations during the second quarter of 2025.
What are the company's plans for future growth?
FAT Brands is focused on expanding its footprint, especially with a new deal to open 40 Fatburger locations in Florida.
How has FAT Brands performed in terms of EBITDA?
The company reported a negative EBITDA of $6.0 million in Q2 2025, compared to a slightly positive EBITDA in the same quarter last year.
When can investors access the financial conference call?
The conference call is scheduled for today at 4:30 PM ET and will focus on the financial results.
