News

Fatburger CEO pleased with Q3 financials

Photo provided.

November 8, 2019

FAT Brands Inc., parent company of Fatburger, reported that revenues and sales were up for fiscal third quarter 2019, the 13-week period ending Sept. 29.

"We are pleased with our performance in the third quarter which included nearly 11% revenue growth and EBITDA growth of over 70%, as we continue to execute our brand acquisition strategy," Presdient and CEO Andy Wiederhorn,  said in the release. "During the quarter we successfully integrated our latest acquisition, Elevation Burger, which is now running at full synergies. We have built a considerable brand pipeline from which we will acquire synergistic brands to add to our unique platform."

Fiscal third quarter 2019 highlights include:

• Total revenues of $6.5 million, up 10.6% from $5.9 million in the third quarter of 2018. Excluding advertising revenues, revenues grew 10.5% to $5.3 million from $4.8 million in the third quarter of 2018.
• System-wide sales growth of 7.5% year-over-year and 19.4% year-to-date.
• United States sales growth of 4.5% y/y and 24.9% YTD.
• Canada sales growth of 5.2% y/y and 5.5% YTD.
• Other International sales growth of 24.1% y/y and 6.7% YTD.
• System-wide same-store sales growth of 1.3% y/y and 1% YTD.
• United States same-store sales growth of 0.1% y/y and 0.2% YTD.
• Canada same-store sales growth of 2.5% y/y and 2.7% YTD.
• Other International sales growth of 10.5% y/y and 9.4% YTD.
• Six franchised store openings during the third quarter with two additional openings thus far in the fourth quarter.
• Net income of $1,154,000 or 10 cents per share on a basic and fully diluted basis, as compared to net income of $10,000 or $0.00 per share on a basic and fully diluted basis in the third quarter of 2018.

"We continue to pursue financing that will lower our cost of capital," Wiederhorn said. "To that end, we recently completed the initial closing of our Series B preferred offering with significant insider purchases. Furthermore, in the next few months, we expect to close a whole-business securitization deal that will further reduce our cost of capital and provide ample permanent capital to pursue our growth strategy."

FAT Brands, which also Buffalo's Cafe, Buffalo's Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, has more than 380 units worldwide.