Friday, August 04, 2023
FAT Brands (NASDAQ: FAT) is a leading global franchising company that strategically acquires, markets, and develops fast casual, quick-service, casual dining, and polished casual dining concepts around the world. The Company currently owns 17 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises and owns over 2,300 units worldwide. For more information on FAT Brands, please visit www.fatbrands.com.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
2Q23 Results. FAT Brands reported 2Q23 revenue of $106.8 million, up 3.9% y-o-y from $102.8 million in the year ago quarter. System-wide sales growth was 1.7%. Same Store Sales were up 1.9%. FAT reported adjusted EBITDA of $23.1 million in the quarter, compared to $29.5 million in 2Q22. Net loss for the quarter was $7.1 million, or $0.53/sh, compared to a net loss of $9.8 million, or $0.60/sh last year. Adjusted net income for the quarter was $3.0 million, or EPS of $0.08/sh, compared to a net loss of $3.1 million, or a loss of $0.29/sh, last year. We had projected revenue of $106.8 million and a net loss of $26 million, or a loss of $1.57/sh.
Development Continues. YTD, FAT has opened 66 restaurants, including 25 in 2Q and the Company remains on track to open 175 locations in 2023. YTD, over 150 new franchise agreements have been signed, bringing the total pipeline to over 1,100 signed agreements.
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