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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 3, 2023
FAT Brands Inc.
(Exact name of Registrant as Specified in Its Charter)
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Delaware | 001-38250 | 82-1302696 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
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9720 Wilshire Blvd., Suite 500 Beverly Hills, CA (Address of Principal Executive Offices) | 90212 (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (310) 319-1850
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
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o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class | | Trading Symbol(s) | | Name of each exchange on which registered |
Class A Common Stock, par value $0.0001 per share | | FAT | | The Nasdaq Stock Market LLC |
Class B Common Stock, par value $0.0001 per share | | FATBB | | The Nasdaq Stock Market LLC |
Series B Cumulative Preferred Stock, par value $0.0001 per share | | FATBP | | The Nasdaq Stock Market LLC |
Warrants to purchase Class A Common Stock | | FATBW | | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On August 3, 2023, FAT Brands Inc. (the “Company”) issued a press release announcing its financial results for the thirteen- week and twenty-six week periods ended June 25, 2023. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
The Company also hosted a conference call on August 3, 2023 in which the financial results were discussed. A replay is available until Thursday, August 24, 2023 and can be accessed by dialing 1-844-512-2921 from the U.S. or 1-412-317-6671 internationally. The passcode is 10179911.
The webcast is available at www.fatbrands.com under the “Investors” section.
Item 7.01 Regulation FD Disclosure.
On August 3, 2023, the Company provided supplemental financial information to be used in its earnings presentation for the thirteen-week and twenty-six week periods ended June 25, 2023 on its website at https://ir.fatbrands.com/events-and-presentations/default.aspx. A copy of the earning supplement is furnished as Exhibit 99.2 hereto and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 and 7.01, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information may be incorporated by reference in another filing under the Securities and Exchange Act of 1934 or the Securities Act of 1933 only if, and to the extent that, such subsequent filing specifically references such information.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
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Exhibit Number | | Description |
99.1 | | |
99.2 | | |
104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| FAT Brands Inc. |
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Date: August 3, 2023 | /s/ Kenneth J. Kuick |
| Kenneth J. Kuick |
| Co-Chief Executive Officer and Chief Financial Officer |
Exhibit 99.1
FAT BRANDS INC. REPORTS SECOND QUARTER 2023 FINANCIAL RESULTS
Conference call and webcast today at 4:30 p.m. ET
LOS ANGELES (August 3, 2023) – FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported financial results for the fiscal second quarter ended June 25, 2023.
Andy Wiederhorn, Chairman of FAT Brands, commented, “In the last several years, we grew the FAT Brands portfolio to 17 iconic restaurant brands with approximately 2,300 units and annual system wide sales of $2.2 billion. Year to date, we have opened 66 restaurants, including 25 that opened in the second quarter, and remain on track to open 175 new restaurants in 2023, representing 25% unit expansion year over year. We are seeing strong new franchisee activity as well as continued demand from existing franchise partners to develop other brands within our portfolio. So far in 2023, we have signed over 150 new franchise development deals bringing our total pipeline to over 1,100 signed agreements. This represents over 50% EBITDA growth over the next several years.”
“While franchise interest remains high across all of our brands, we are especially focused on expansion of Twin Peaks. In 2023, we plan to open 18 to 20 new lodges, of which eight have opened so far, including our 100th location. We expect to end 2023 with approximately 115 lodges, a nearly 40 percent increase in unit count since our acquisition of the brand. As we previously announced, we intend to take Twin Peaks public in 2024, subject to market conditions.
“Over the long term, we believe the opportunities for FAT Brands are considerable and we are well positioned for growth. We have a seasoned leadership team, coupled with a strong platform capable of seamlessly and cost-effectively integrating new brands. Additionally, our health and growing development pipeline will fuel organic growth for many years to come and will naturally deleverage our balance sheet.”
Fiscal Second Quarter 2023 Highlights
•Total revenue improved 4% to $106.8 million compared to $102.8 million in the fiscal second quarter of 2022
◦System-wide sales growth of 1.7% in the fiscal second quarter of 2023 compared to the prior year fiscal quarter
◦Year-to-date system-wide same-store sales growth of 1.9% in the fiscal second quarter of 2023 compared to the prior year
◦25 new store openings during the fiscal second quarter of 2023
•Net loss of $7.1 million, or $0.53 per diluted share, compared to $8.2 million, or $0.60 per diluted share, in the fiscal second quarter of 2022
•Adjusted EBITDA(1) of $23.1 million compared to $29.5 million in the fiscal second quarter of 2022
•Adjusted net income(1) of $3.0 million, or $0.08 per diluted share, compared to adjusted net loss of $3.1 million, or $0.29 per diluted share, in the fiscal second quarter of 2022
(1)EBITDA, Adjusted EBITDA and adjusted net income (loss) are non-GAAP measures defined below, under “Non-GAAP Measures”. Reconciliation of GAAP net loss to EBITDA, adjusted EBITDA and adjusted net income (loss) are included in the accompanying financial tables.
Summary of Fiscal Second Quarter 2023 Financial Results
Total revenue increased $4.0 million, or 3.9%, in the second quarter of 2023 to $106.8 million compared to $102.8 million in the same period of 2022, driven by a 5.0% increase in royalties, a 4.6% increase in company-owned restaurant revenues and a 13.0% increase in revenues from our manufacturing facility.
Costs and expenses remained largely unchanged in the second quarter, decreasing 1.4% in the second quarter of 2023 compared to the same period in the prior year.
General and administrative expense decreased $10.9 million, or 52.3%, in the second quarter of 2023 compared to the same period in the prior year, primarily due to the reversal of $12.7 million in reserves related to Employee Retention Credits during the second quarter of 2023, partially offset by higher professional fees related to certain litigation matters.
Cost of restaurant and factory revenues increased $9.7 million, or 19%, in the second quarter of 2023 compared to the same period in the prior year, primarily due to the recognition of $10.1 million in Employee Retention Credits during the second quarter of 2022.
Depreciation and amortization increased $0.4 million, or 5% in the second quarter of 2023 compared to the same period in the prior year, primarily due to depreciation of new property and equipment at company-owned restaurant locations.
Advertising expenses in the second quarter of 2023 were $11.6 million in both the second quarter of 2023 and 2022. These expenses vary in relation to advertising revenues.
Total other expense, net, for the second quarter of 2023 and 2022 was $24.2 million and $21.6 million, respectively, which is inclusive of interest expense of $24.3 million and $23.7 million, respectively.
Adjusted net income(1) of $3.0 million, or $0.08 per diluted share, compared to adjusted net loss of $3.1 million, or $0.29 per diluted share, in the fiscal second quarter of 2022.
Key Financial Definitions
New store openings - The number of new store openings reflects the number of stores opened during a particular reporting period. The total number of new stores per reporting period and the timing of stores openings has, and will continue to have, an impact on our results.
Same-store sales growth - Same-store sales growth reflects the change in year-over-year sales for the comparable store base, which we define as the number of stores open and in the FAT Brands system for at least one full fiscal year. For stores that were temporarily closed, sales in the current and prior period are adjusted accordingly. Given our focused marketing efforts and public excitement surrounding each opening, new stores often experience an initial start-up period with considerably higher than average sales volumes, which subsequently decrease to stabilized levels after three to six months. Additionally, when we acquire a brand, it may take several months to integrate fully each location of said brand into the FAT Brands platform. Thus, we do not include stores in the comparable base until they have been open and in the FAT Brands system for at least one full fiscal year.
System-wide sales growth - System wide sales growth reflects the percentage change in sales in any given fiscal period compared to the prior fiscal period for all stores in that brand only when the brand is owned by FAT Brands. Because of acquisitions, new store openings and store closures, the stores open throughout both fiscal periods being compared may be different from period to period.
Conference Call and Webcast
FAT Brands will host a conference call and webcast to discuss its fiscal second quarter 2023 financial results today at 4:30 PM ET. Hosting the conference call and webcast will be Andy Wiederhorn, Chairman of the Board, and Ken Kuick, Co-Chief Executive Officer and Chief Financial Officer.
The conference call can be accessed live over the phone by dialing 1-844-826-3035 from the U.S. or 1-412-317-5195 internationally. A replay will be available after the call until Thursday, August 24, 2023, and can be accessed by dialing 1-844-512-2921 from the U.S. or 1-412-317-6671 internationally. The passcode is 10179911. The webcast will be available at www.fatbrands.com under the “Investors” section and will be archived on the site shortly after the call has concluded.
About FAT (Fresh. Authentic. Tasty.) Brands
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 approximately 2,300 units worldwide. For more information, please visit www.fatbrands.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the future financial and operating results of the Company, estimates of future EBITDA, the timing and performance of new store openings, future reductions in cost of capital and leverage ratio, our ability to conduct future accretive acquisitions and our pipeline of new store locations. Forward-looking statements generally use words such as “expect,” “foresee,” “anticipate,” “believe,” “project,” “should,” “estimate,” “will,” “plans,” “forecast,” and similar expressions, and reflect our expectations concerning the future. Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond our control, which could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. We refer you to the documents that we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause our actual results to differ materially from our current expectations and from the forward-looking statements contained in this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Non-GAAP Measures (Unaudited)
This press release includes the non-GAAP financial measures of EBITDA, adjusted EBITDA and adjusted net loss.
EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. We use the term EBITDA, as opposed to income from operations, as it is widely used by analysts, investors, and other interested parties to evaluate companies in our industry. We believe that EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance. EBITDA is not a measure of our financial performance or liquidity that is determined in accordance with generally accepted accounting principles (“GAAP”), and should not be considered as an alternative to net loss as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP.
Adjusted EBITDA is defined as EBITDA (as defined above), excluding expenses related to acquisitions, refranchising loss, impairment charges, and certain non-recurring or non-cash items that the Company does not believe directly reflect its core operations and may not be indicative of the Company’s recurring business operations.
Adjusted net loss is a supplemental measure of financial performance that is not required by or presented in accordance with GAAP. Adjusted net loss is defined as net loss plus the impact of adjustments and the tax effects of such adjustments. Adjusted net loss is presented because we believe it helps convey supplemental information to investors regarding our performance, excluding the impact of special items that affect the comparability of results in past quarters to expected results in future quarters. Adjusted net loss as presented may not be comparable to other similarly titled measures of other companies, and our presentation of adjusted net loss should not be construed as an inference that our future results will be unaffected by excluded or unusual items. Our management uses this non-GAAP financial measure to analyze changes in our underlying business from quarter to quarter based on comparable financial results.
Reconciliations of net loss presented in accordance with GAAP to EBITDA, adjusted EBITDA and adjusted net loss are set forth in the tables below.
Investor Relations:
ICR
Michelle Michalski
ir-fatbrands@icrinc.com
646-277-1224
Media Relations:
Erin Mandzik
emandzik@fatbrands.com
860-212-6509
FAT Brands Inc. Consolidated Statements of Operations
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| Thirteen Weeks Ended | | Twenty-Six Weeks Ended |
(In thousands) | June 25, 2023 | | June 26, 2022 | | June 25, 2023 | | June 26, 2022 |
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Revenue | | | | | | | |
Royalties | $ | 22,751 | | | $ | 21,665 | | | $ | 45,236 | | | $ | 42,563 | |
Restaurant sales | 62,778 | | | 60,044 | | | 125,379 | | | 118,121 | |
Advertising fees | 9,668 | | | 9,568 | | | 19,019 | | | 18,929 | |
Factory revenues | 9,686 | | | 8,570 | | | 18,851 | | | 16,749 | |
Franchise fees | 763 | | | 1,295 | | | 1,565 | | | 2,009 | |
Other revenue | 1,118 | | | 1,643 | | | 2,405 | | | 1,817 | |
Total revenue | 106,764 | | | 102,785 | | | 212,455 | | | 200,188 | |
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Costs and expenses | | | | | | | |
General and administrative expense | 9,947 | | | 20,841 | | | 38,362 | | | 45,437 | |
Cost of restaurant and factory revenues | 59,502 | | | 49,846 | | | 118,589 | | | 104,644 | |
Depreciation and amortization | 7,061 | | | 6,711 | | | 14,177 | | | 13,181 | |
Refranchising loss | 179 | | | 453 | | | 338 | | | 1,001 | |
Acquisition costs | — | | | 135 | | | — | | | 383 | |
Advertising fees | 11,610 | | | 11,596 | | | 22,137 | | | 21,853 | |
Total costs and expenses | 88,299 | | | 89,582 | | | 193,603 | | | 186,499 | |
| | | | | | | |
Income from operations | 18,465 | | | 13,203 | | | 18,852 | | | 13,689 | |
| | | | | | | |
Other (expense) income, net | | | | | | | |
Interest expense | (20,008) | | | (18,998) | | | (45,098) | | | (38,026) | |
Interest expense related to preferred shares | (4,311) | | | (4,715) | | | (9,354) | | | (6,714) | |
Other income, net | 109 | | | 2,071 | | | 265 | | | 3,381 | |
Total other expense, net | (24,210) | | | (21,642) | | | (54,187) | | | (41,359) | |
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Loss before income tax provision (benefit) | (5,745) | | | (8,439) | | | (35,335) | | | (27,670) | |
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Income tax provision (benefit) | 1,346 | | | (251) | | | 3,882 | | | 4,273 | |
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Net loss | $ | (7,091) | | | $ | (8,188) | | | $ | (39,217) | | | $ | (31,943) | |
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Net loss | $ | (7,091) | | | $ | (8,188) | | | $ | (39,217) | | | $ | (31,943) | |
Dividends on preferred shares | (1,615) | | | (1,661) | | | (3,381) | | | (3,314) | |
| $ | (8,706) | | | $ | (9,849) | | | $ | (42,598) | | | $ | (35,257) | |
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Basic and diluted loss per common share | $ | (0.53) | | | $ | (0.60) | | | $ | (2.58) | | | $ | (2.15) | |
Basic and diluted weighted average shares outstanding | 16,522,379 | | | 16,405,108 | | | 16,521,590 | | | 16,396,896 | |
Cash dividends declared per common share | $ | 0.14 | | | $ | 0.13 | | | $ | 0.28 | | | $ | 0.26 | |
FAT Brands Inc. Consolidated EBITDA and Adjusted EBITDA Reconciliation
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| Thirteen Weeks Ended | | Twenty-Six Weeks Ended |
(In thousands) | June 25, 2023 | | June 26, 2022 | | June 25, 2023 | | June 26, 2022 |
| | | | | | | |
Net loss | $ | (7,091) | | | $ | (8,188) | | | $ | (39,217) | | | $ | (31,943) | |
Interest expense, net | 24,319 | | | 23,713 | | | 54,452 | | | 44,740 | |
Income tax provision (benefit) | 1,346 | | | (251) | | | 3,882 | | | 4,273 | |
Depreciation and amortization | 7,061 | | | 6,711 | | | 14,177 | | | 13,181 | |
EBITDA | 25,635 | | | 21,985 | | | 33,294 | | | 30,251 | |
Bad debt expense | (13,106) | | | 239 | | | (12,071) | | | 423 | |
Share-based compensation expenses | 477 | | | 1,934 | | | 1,572 | | | 4,046 | |
Non-cash lease expenses | 293 | | | 457 | | | 674 | | | 741 | |
Acquisition costs | — | | | 134 | | | — | | | 383 | |
Refranchising loss | 179 | | | 453 | | | 338 | | | 1,001 | |
Litigation costs | 6,924 | | | 4,308 | | | 14,668 | | | 7,264 | |
Severance | 1,036 | | | — | | | 1,036 | | | 526 | |
Net loss related to advertising fund deficit | 1,688 | | | — | | | 2,773 | | | 10 | |
Pre-opening expenses | 11 | | | — | | | 40 | | | — | |
Adjusted EBITDA | $ | 23,137 | | | $ | 29,510 | | | $ | 42,325 | | | $ | 44,645 | |
FAT Brands Inc. Adjusted Net Income (Loss) Reconciliation
| | | | | | | | | | | | | | | | | | | | | | | |
| Thirteen Weeks Ended | | Twenty-Six Weeks Ended |
(In thousands, except share and per share data) | June 25, 2023 | | June 26, 2022 | | June 25, 2023 | | June 26, 2022 |
| | | | | | | |
Net loss | $ | (7,091) | | | $ | (8,188) | | | $ | (39,217) | | | $ | (31,943) | |
Refranchising loss | 179 | | | 453 | | | 338 | | | 1,001 | |
Acquisition costs | — | | | 134 | | | — | | | 383 | |
Litigation costs | 6,924 | | | 4,308 | | | 14,668 | | | 7,264 | |
Severance | 1,036 | | | — | | | 1,036 | | | 526 | |
Tax adjustments, net (1) | 1,907 | | | 146 | | | 1,762 | | | (1,417) | |
Adjusted net income (loss) | $ | 2,955 | | | $ | (3,147) | | | $ | (21,413) | | | $ | (24,186) | |
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Net loss | $ | (7,091) | | | $ | (8,188) | | | $ | (39,217) | | | $ | (31,943) | |
Dividends on preferred shares | (1,615) | | | (1,661) | | | (3,381) | | | (3,314) | |
| $ | (8,706) | | | $ | (9,849) | | | $ | (42,598) | | | $ | (35,257) | |
| | | | | | | |
Adjusted net income (loss) | $ | 2,955 | | | $ | (3,147) | | | $ | (21,413) | | | $ | (24,186) | |
Dividends on preferred shares | (1,615) | | | (1,661) | | | (3,381) | | | (3,314) | |
| $ | 1,340 | | | $ | (4,808) | | | $ | (24,794) | | | $ | (27,500) | |
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Loss per basic and diluted share | $ | (0.53) | | | $ | (0.60) | | | $ | (2.58) | | | $ | (2.15) | |
Adjusted net income (loss) per basic and diluted share | $ | 0.08 | | | $ | (0.29) | | | $ | (1.50) | | | $ | (1.68) | |
| | | | | | | |
Weighted average basic and diluted shares outstanding | 16,522,379 | | | 16,405,108 | | | 16,521,590 | | | 16,396,896 | |
(1) Reflects the tax impact of the adjustments using the effective tax rate for the respective periods.
FAT Brands Inc. Consolidated Statements of Operations Thirteen Weeks Ended Twenty-Six Weeks Ended (In thousands) June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022 Revenue Royalties $ 22,751 $ 21,665 $ 45,236 $ 42,563 Restaurant sales 62,778 60,044 125,379 118,121 Advertising fees 9,668 9,568 19,019 18,929 Factory revenues 9,686 8,570 18,851 16,749 Franchise fees 763 1,295 1,565 2,009 Other revenue 1,118 1,643 2,405 1,817 Total revenue 106,764 102,785 212,455 200,188 Costs and expenses General and administrative expense 9,947 20,841 38,362 45,437 Cost of restaurant and factory revenues 59,502 49,846 118,589 104,644 Depreciation and amortization 7,061 6,711 14,177 13,181 Refranchising loss 179 453 338 1,001 Acquisition costs — 135 — 383 Advertising fees 11,610 11,596 22,137 21,853 Total costs and expenses 88,299 89,582 193,603 186,499 Income from operations 18,465 13,203 18,852 13,689 Other (expense) income, net Interest expense (20,008) (18,998) (45,098) (38,026) Interest expense related to preferred shares (4,311) (4,715) (9,354) (6,714) Other income, net 109 2,071 265 3,381 Total other expense, net (24,210) (21,642) (54,187) (41,359) Loss before income tax provision (benefit) (5,745) (8,439) (35,335) (27,670) Income tax provision (benefit) 1,346 (251) 3,882 4,273 Net loss $ (7,091) $ (8,188) $ (39,217) $ (31,943) Net loss $ (7,091) $ (8,188) $ (39,217) $ (31,943) Dividends on preferred shares (1,615) (1,661) (3,381) (3,314) $ (8,706) $ (9,849) $ (42,598) $ (35,257) Basic and diluted loss per common share $ (0.53) $ (0.60) $ (2.58) $ (2.15) Basic and diluted weighted average shares outstanding 16,522,379 16,405,108 16,521,590 16,396,896 Cash dividends declared per common share $ 0.14 $ 0.13 $ 0.28 $ 0.26
FAT Brands Inc. Consolidated EBITDA and Adjusted EBITDA Reconciliation Thirteen Weeks Ended Twenty-Six Weeks Ended (In thousands) June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022 Net loss $ (7,091) $ (8,188) $ (39,217) $ (31,943) Interest expense, net 24,319 23,713 54,452 44,740 Income tax provision (benefit) 1,346 (251) 3,882 4,273 Depreciation and amortization 7,061 6,711 14,177 13,181 EBITDA 25,635 21,985 33,294 30,251 Bad debt expense (13,106) 239 (12,071) 423 Share-based compensation expenses 477 1,934 1,572 4,046 Non-cash lease expenses 293 457 674 741 Acquisition costs — 134 — 383 Refranchising loss 179 453 338 1,001 Litigation costs 6,924 4,308 14,668 7,264 Severance 1,036 — 1,036 526 Net loss related to advertising fund deficit 1,688 — 2,773 10 Pre-opening expenses 11 — 40 — Adjusted EBITDA $ 23,137 $ 29,510 $ 42,325 $ 44,645
FAT Brands Inc. Adjusted Net Income (Loss) Reconciliation Thirteen Weeks Ended Twenty-Six Weeks Ended (In thousands, except share and per share data) June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022 Net loss $ (7,091) $ (8,188) $ (39,217) $ (31,943) Refranchising loss 179 453 338 1,001 Acquisition costs — 134 — 383 Litigation costs 6,924 4,308 14,668 7,264 Severance 1,036 — 1,036 526 Tax adjustments, net (1) 1,907 146 1,762 (1,417) Adjusted net income (loss) $ 2,955 $ (3,147) $ (21,413) $ (24,186) Net loss $ (7,091) $ (8,188) $ (39,217) $ (31,943) Dividends on preferred shares (1,615) (1,661) (3,381) (3,314) $ (8,706) $ (9,849) $ (42,598) $ (35,257) Adjusted net income (loss) $ 2,955 $ (3,147) $ (21,413) $ (24,186) Dividends on preferred shares (1,615) (1,661) (3,381) (3,314) $ 1,340 $ (4,808) $ (24,794) $ (27,500) Loss per basic and diluted share $ (0.53) $ (0.60) $ (2.58) $ (2.15) Adjusted net income (loss) per basic and diluted share $ 0.08 $ (0.29) $ (1.50) $ (1.68) Weighted average basic and diluted shares outstanding 16,522,379 16,405,108 16,521,590 16,396,896 (1) Reflects the tax impact of the adjustments using the effective tax rate for the respective periods.
v3.23.2
Cover
|
Aug. 03, 2023 |
Document Information [Line Items] |
|
Document Type |
8-K
|
Document Period End Date |
Aug. 03, 2023
|
Entity Registrant Name |
FAT Brands Inc.
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Entity Incorporation, State or Country Code |
DE
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Entity File Number |
001-38250
|
Entity Tax Identification Number |
82-1302696
|
Entity Address, Address Line One |
9720 Wilshire Blvd.
|
Entity Address, Address Line Two |
Suite 500
|
Entity Address, City or Town |
Beverly Hills
|
Entity Address, State or Province |
CA
|
Entity Address, Postal Zip Code |
90212
|
City Area Code |
310
|
Local Phone Number |
319-1850
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Entity Emerging Growth Company |
false
|
Entity Central Index Key |
0001705012
|
Amendment Flag |
false
|
Class A Common Stock |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Class A Common Stock, par value $0.0001 per share
|
Trading Symbol |
FAT
|
Security Exchange Name |
NASDAQ
|
Class B Common Stock |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Class B Common Stock, par value $0.0001 per share
|
Trading Symbol |
FATBB
|
Security Exchange Name |
NASDAQ
|
Series B Cumulative Preferred Stock |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Series B Cumulative Preferred Stock, par value $0.0001 per share
|
Trading Symbol |
FATBP
|
Security Exchange Name |
NASDAQ
|
Warrants to Purchase Common Stock |
|
Document Information [Line Items] |
|
Title of 12(b) Security |
Warrants to purchase Class A Common Stock
|
Trading Symbol |
FATBW
|
Security Exchange Name |
NASDAQ
|
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