Q4 2024 FAT Brands Inc Earnings Call Transcript
Key Points
- FAT Brands Inc (FAT) successfully spun out Twin Hospitality Group, enhancing transparency and allowing shareholders to directly participate in the growth of Twin Peaks.
- The company plans to open over 100 new locations in 2025, building on the 92 new restaurants opened in 2024, indicating strong organic growth.
- FAT Brands Inc (FAT) has a robust development pipeline with signed agreements for approximately 1,000 additional locations, expected to generate significant incremental annual adjusted EBITDA.
- Co-branding initiatives, such as Great American Cookies and Marble Slab Creamery, have been successful, with co-branded locations generating 10% to 20% higher incremental sales.
- The company's manufacturing facility in Georgia presents significant growth potential, currently operating at only 40% capacity, with plans to increase utilization to 60% to 70%.
- Total revenue decreased by 8.4% in the fourth quarter of 2024 compared to the prior year, primarily due to one less operating week.
- The company reported a net loss of $67.4 million for the fourth quarter, significantly higher than the $26.2 million loss in the prior year quarter.
- FAT Brands Inc (FAT) recognized $30.6 million of non-cash, goodwill, and other intangible asset impairment due to a decline in restaurant performance.
- General and administrative expenses increased due to store closure costs, impacting overall profitability.
- The company faces challenges with franchisee financing and construction delays, causing slippage in the opening of new stores.
Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the FAT Brands Inc., fourth-quarter 2024 earnings conference call.
(Operator Instructions) Please note that this conference is being recorded, today, February 27, 2025.
On the call, from FAT Brands, are Chairman of the Board, Andy 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 Investor 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 reliance should not be placed upon them.
Actual results may differ,
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