News

FAT Brands reports same-store sales growth across all brands

August 8, 2018

Sales are looking good for FAT Brands Inc. The parent company of Fatburger, Buffalo's Express, Ponderosa and Bonanza Steakhouse said Tuesday that it saw positive same-store sales across all its brands for Q2, the 13-week period ended July 1, 2018.

“We're pleased to report second-quarter results which include positive same-store sales growth across all of our brands," Andy Wiederhorn, president and CEO of FAT Brands, said in a company press release. "Our flagship Fatburger brand continued to achieve particularly impressive results, with same-store sales growth of 9.5 percent inclusive of 4.2 percent transaction growth. Strong Fatburger results continue to be driven by momentum in delivery, as well as by increased traction of the plant-based Impossible Burger. We also saw positive trends in our casual dining brands, supported by the tests of a new media campaign, to-go packaging, and third-party delivery."

Fiscal Second Quarter 2018 Highlights

• Total revenues of $3.9 million
• EBITDA of $825,000
• Net income of $373,000, or $0.04 per share

Fatburger and Buffalo's Express

• Same-store sales growth in core domestic market of 8.9 percent
• System-wide same-store sales growth of 9.5 percent
• Total revenues of $2.0 million
• EBITDA of $887,000
• Net income of $771,000
• Four store openings

Buffalo's Cafe

• System-wide same-store sales growth of 10.2 percent
• Total revenue of $511,000
• EBITDA of $165,000
• Net income of $237,000

Ponderosa and Bonanza Steakhouse

• System-wide same-store sales growth of 0.9 percent
• Total revenue of $1.4 million
• EBITDA of $304,000
• Net income of $247,000

Financing events in the quarter
On July 3, 2018, FAT Brands completed the previously announced acquisition of Hurricane AMT LLC, the franchisor of Hurricane Grill & Wings and Hurricane BTW restaurants, for a purchase price of $12,500,000.

Quarterly cash dividend
The company's board approved the payment of a quarterly cash dividend to shareholders of $0.12 per share. The dividend was paid on July 16, 2018 to shareholders of record at of the close of business on July 6, 2018.