Fat Brands ( (FAT) ) has released its Q4 earnings. Here is a breakdown of the information Fat Brands presented to its investors.
FAT Brands Inc. is a global franchising company that acquires, markets, and develops various dining concepts, including fast casual and quick-service restaurants. The company owns 18 restaurant brands and operates approximately 2,300 units worldwide.
In its latest earnings report, FAT Brands announced a significant expansion in 2024, opening 92 new restaurants and signing over 250 new franchise agreements. The company also completed a strategic spin-out of Twin Hospitality Group Inc., creating a separate publicly traded entity to enhance growth opportunities.
Key financial metrics from the fiscal fourth quarter of 2024 show a decrease in total revenue by 8.4% to $145.3 million, primarily due to the absence of an additional operating week present in the previous year. The company reported a net loss of $67.4 million, with a decline in system-wide same-store sales by 1.6%. For the full fiscal year, total revenue increased by 23.4% to $592.7 million, despite a net loss of $189.8 million.
Looking forward, FAT Brands aims to focus on cost reductions and maximizing synergies. The company plans to refranchise its Fazoli’s locations, leaving only a small number of company-owned outlets, and expects to add over 100 new restaurants in 2025. Management remains optimistic about leveraging growth opportunities and enhancing shareholder value.