Operations

Despite revenue decreases, FAT Brands planning growth

Photo: FAT Brands

May 9, 2025

FAT Brands Inc.'s Q2 results revealed a decline in total revenue by 6.5% to $142 million. System-wide sales also decreased by 1.8%, and same-store sales saw a 3.4% drop, but Chairman Andy Wiederhorn highlighted the chain's unit growth in the company's recent earnings call.

"[We] started 2025 with strong momentum, opening 23 new locations in the first quarter, a 37% increase over last year's quarter," he told investors. "We remain on track to achieve our target of over 100 new restaurant openings this year, supported by our robust development pipeline of approximately 1,000 signed agreements," he said during the call.

Co-CEO and CFO Ken Kuick said the company's spin-off of Twin Hospitality Group Inc. marked a strategic milestone, delivering a $50 million dividend to shareholders through the distribution of Twin Hospitality Group's Class A Common Stock, while maintaining ownership of the remaining shares.

The company, which also owns Round Table Pizza, Johnny Rockets and 14 other restaurant concepts, reported a net loss of $46 million, or $2.73 per diluted share, compared to a net loss of $38.3 million in the same quarter last year.

"Our strategy to return to a nearly 100% franchised model is advancing with the planned refranchising of our 57 company-operated Fazoli's restaurants," said Co-CEO Taylor Wiederhorn during the call. "Combined with our manufacturing capabilities expansion, including our first third-party contract with a national restaurant entertainment chain, which we expect to execute on in the second quarter, we are well-positioned to drive sustainable growth and shareholder value."