Q1 2025 FAT Brands Inc Earnings Call Transcript
Key Points
- FAT Brands Inc (FAT) has a robust development pipeline with commitments for over 1,000 new locations, indicating strong future growth potential.
- The company successfully opened 23 new units in Q1 2025, a 37% increase from Q1 2024, showcasing effective expansion efforts.
- Digital sales at Round Table Pizza increased by 5% sequentially from Q4 2024 to Q1 2025, reflecting strong digital engagement.
- Co-branding initiatives are progressing well, with successful launches of co-branded and tri-branded models, enhancing market presence.
- The Georgia production facility is performing well, with USD8.8 million in first-quarter sales and a 35% margin, indicating strong operational efficiency.
- Total revenue for Q1 2025 decreased by 6.5% compared to the same period last year, reflecting challenges in maintaining sales momentum.
- Net loss attributable to FAT Brands was USD46 million, an increase from the USD38.3 million loss in the prior year quarter, indicating financial strain.
- General and administrative expenses increased to USD33 million due to higher professional fees, impacting overall profitability.
- The company paused its common dividend and started accruing the Series B preferred dividend, reflecting financial constraints.
- Market volatility has delayed the company's ability to raise equity, impacting plans to reduce outstanding debt.
Greetings and welcome to the FAT Brand Inc. First quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. A question answering session will follow the formal presentation.
(Operator Instructions)
As a reminder, this conference is being recorded. At this time, I'd like to turn the call over to Ken Kuick, my friend CFO. Please proceed.
Good afternoon, everyone, and thank you for joining the Fat Branch earnings call today. On the call with me today is Andy Weiderhorn, our Chairman of the board.
This afternoon we released our first quarter of 2025 results. 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 contained additional details about the first quarter, which closed on March 30, 2025.
Before I begin, I must remind everyone
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