News

Sales up at FAT Brands

August 14, 2019

FAT Brands, parent company of Fatburger, reported that system-wide sales increased 26.3% in Q2 but that worldwide same-store sales fell 1.7% during the quarter ending in June. Adjusted EBITDA came in at $2 million vs $945,000 a year ago, according to a company press release.

CEO Andy Weiderhorn said the sales increases were driven by a 37.1% increase in the U.S.,and that its purchase of Elevation Burger would further drive efficiencies and growth.

"The brand is well-aligned with our own commitment to fresh, authentic, tasty food and we are confident that it has considerable opportunity to expand domestically and internationally with its organic, free-range, grass-fed offerings," he said in the release. "Elevation Burger reflects another synergistic opportunity for our unique FAT platform, which is designed to drive efficiencies and growth, and we look forward to pursuing additional transactions over time."

Q2 Highlights

• Total revenues of $5.9 million, up 50.8% from $3.9 million in the second quarter of 2018. Excluding advertising revenues, revenues grew 48.4% to $4.9 million from $3.3 million in the second quarter of 2018.
• System-wide sales growth of 26.3% year-over-year and 26.8% year-to-date.
• United States sales growth of 37.4% year-over-year and 38.8% year-to-date.
• Canada sales growth of 1.9% year-over-year and 4.9% year-to-date.
• Other International sales growth of 2.4% year-over-year and (1.1%) year-to-date.
• System-wide, same-store sales growth of (0.9%) year-over-year and (0.9)% year-to-date.
• Fatburger worldwide same-store sales growth of (1.7%) year-over-year and (0.6%) year-over-year in North America.
• Fatburger worldwide same-store sales growth of 0.4% year-to-date, and 1.5% year-to-date in North America.
• Buffalo's Cafe worldwide same-store sales growth of 0.8% year-over-year and 1.8% year-to-date.
• Hurricane Grill & Wings same-store sales growth of 4.9% year-over-year and 4.8% year-to-date.
• Ponderosa/Bonanza worldwide same-store sales growth of (2.7%) year-over-year and (4.5%) year-to-date.
• United States same-store sales growth of 0.7% year-over-year and 0.4% year-to-date
• Canada same-store sales growth of (0.0%) year-over-year and 2.4% year-to-date.
• Other International(1) sales growth of (9.0%) year-over-year and (9.1%) year-to-date
• Eight franchised store openings.
• Net loss of $508,000 or $0.04 per share on a basic and fully diluted basis, as compared to net income of $373,000 or $0.04 per share on a basic and fully diluted basis in the second quarter of 2018

FAT Brands also owns Buffalo's Cafe, Buffalo's Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises over 400 units worldwide.