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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): May 8, 2025
FAT Brands Inc.
(Exact name of Registrant as Specified in Its Charter)
Delaware 001-38250 82-1302696
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
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):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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:
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 May 8, 2025, FAT Brands Inc. (the “Company”) issued a press release announcing its financial results for the thirteen week periods ended March 30, 2025. 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 May 8, 2025 in which the financial results were discussed. A replay is available until Thursday, May 29, 2025 and can be accessed by dialing 1-844-512-2921 from the U.S. or 1-412-317-6671 internationally. The passcode is 13752592.
The webcast is available at www.fatbrands.com under the “Investors” section.
Item 7.01 Regulation FD Disclosure.
On May 8, 2025, the Company provided supplemental financial information to be used in its earnings presentation for the thirteen week periods ended March 30, 2025 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
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.
FAT Brands Inc.
Date: May 8, 2025 /s/ Kenneth J. Kuick
Kenneth J. Kuick
Co-Chief Executive Officer and Chief Financial Officer

EX-99.1 2 a1q25earningsreleaseex991.htm EX-99.1 Document
Exhibit 99.1
image_0.jpg
FAT BRANDS INC. REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS
Conference call and webcast today at 5:30 p.m. ET
LOS ANGELES (May 8, 2025) – FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) today reported financial results for the fiscal first quarter ended March 30, 2025.
Andy Wiederhorn, Chairman of FAT Brands, said, “We started 2025 with strong momentum, opening 23 new locations in the first quarter, a 37% increase over last year’s quarter. 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. Our co-branding initiatives continue to gain traction, with successful launches including our first Round Table Pizza and Marble Slab Creamery pairing, demonstrating our commitment to innovative growth strategies. Additionally, we are expanding internationally, having secured new agreements to open 40 locations across France, consisting of both our Fatburger and Buffalo’s Cafe concepts.”

Ken Kuick, Co-Chief Executive Officer and Chief Financial Officer of FAT Brands, said, “The successful spin-off of Twin Hospitality Group Inc. marks a significant strategic milestone for FAT Brands. This transaction delivered a $50 million dividend to our shareholders through the distribution of Twin Hospitality Group’s Class A Common Stock, while maintaining our ownership of the remaining shares. As we progress through 2025, we remain focused on strengthening our balance sheet while driving operational efficiencies across our portfolio.”

Taylor Wiederhorn, Co-Chief Executive Officer of FAT Brands, said “Our strategy to return to a nearly 100% franchised model is advancing with the planned refranchising of our 57 company-operated Fazoli’s restaurants. This follows our successful amendment of the Fazoli’s securitization, which provides enhanced financial flexibility. 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.”

Fiscal First Quarter 2025 Highlights
•Total revenue declined 6.5% to $142.0 million compared to $152.0 million in the fiscal first quarter of 2024
◦System-wide sales declined 1.8%
◦System-wide same-store sales declined 3.4%
◦23 new store openings during the fiscal first quarter of 2025
•Net loss of $46.0 million, or $2.73 per diluted share, compared to $38.3 million, or $2.37 per diluted share, in the fiscal first quarter of 2024
•EBITDA(1) of $2.1 million compared to $9.4 million in the fiscal first quarter of 2024
•Adjusted EBITDA(1) of $11.1 million compared to $18.2 million in the fiscal first quarter of 2024
•Adjusted net loss(1) of $38.7 million, or $2.32 per diluted share, compared to adjusted net loss(1) of $32.9 million, or $2.05 per diluted share, in the fiscal first quarter of 2024


(1)EBITDA, adjusted EBITDA and adjusted net loss are non-GAAP measures defined below, under “Non-GAAP Measures”. Reconciliation of GAAP net loss to EBITDA, adjusted EBITDA and adjusted net loss are included in the accompanying financial tables.

Summary of Fiscal First Quarter 2025 Financial Results
Total revenue decreased $9.9 million, or 6.5%, in the first quarter of 2025 to $142.0 million compared to $152.0 million in the year-ago quarter, driven by lower same-store sales and lower revenues due to the closure of one Smokey Bones location during its conversion to a Twin Peaks lodge, partially offset by revenues generated by our new Twin Peaks lodges.
Cost of restaurant and factory revenues was related to the operations of the company-owned restaurant locations and dough factory and decreased $3.0 million, or 3.0%, in the first quarter of 2025 to $96.1 million compared to $99.1 million in the year-ago quarter, primarily due to lower same-store sales, partially offset by labor inflation and increases in the prices of food ingredients.
General and administrative expense increased $3.0 million, or 10.1%, in the first quarter of 2025 to $33.0 million compared to $30.0 million in the same period in the prior year, primarily due to the increased professional fees related to pending litigation.
Advertising expenses decreased $1.5 million in the first quarter of 2025 to $11.1 million compared to $12.6 million in the same period in the prior year. These expenses vary in relation to advertising revenues.
Total other expense, net, for the first quarter of 2025 and 2024 was $36.0 million and $33.4 million, respectively, which is inclusive of interest expense of $35.9 million and $34.0 million, respectively.
Adjusted net loss(1) was $38.7 million, or $2.32 per diluted share, compared to adjusted net loss(1) of $32.9 million, or $2.05 per diluted share, in the fiscal first quarter of 2024.
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 first quarter 2025 financial results today at 5:00 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 1-877-704-4453 from the U.S. or 1-201-389-0920 internationally. A replay will be available after the call until Thursday, May 29, 2025, and can be accessed by dialing 1-844-512-2921 from the U.S. or 1-412-317-6671 internationally. The passcode is 13752592. 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 18 restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli’s, Twin Peaks, Smokey Bones, 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, the timing and performance of new store openings, 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



Media Relations:
Erin Mandzik
emandzik@fatbrands.com
860-212-6509


FAT Brands Inc. Consolidated Statements of Operations

Thirteen Weeks Ended
(In thousands, except share and per share data) March 30, 2025 March 31, 2024
Revenue
Royalties $ 21,773  $ 21,947 
Restaurant sales 99,415  105,938 
Advertising fees 9,764  9,796 
Factory revenues 8,811  9,474 
Franchise fees 1,190  1,481 
Other revenue 1,066  3,331 
Total revenue 142,019  151,967 
Costs and expenses
General and administrative expense 33,043  30,005 
Cost of restaurant and factory revenues 96,097  99,050 
Depreciation and amortization 10,391  10,194 
Refranchising (gain) loss (22) 1,508 
   Advertising fees 11,076  12,592 
Total costs and expenses 150,585  153,349 
Loss from operations (8,566) (1,382)
Other (expense) income, net
Interest expense (31,444) (29,623)
Interest expense related to preferred shares (4,418) (4,418)
Net (loss) gain on extinguishment of debt (151) 427 
Other income, net 37  204 
Total other expense, net (35,976) (33,410)
Loss before income tax provision (44,542) (34,792)
Income tax provision (1,769) (3,524)
Net loss (46,311) (38,316)
Less: Net loss attributable to non-controlling interest (342) — 
Net loss attributable to FAT Brands Inc. $ (45,969) $ (38,316)
Net loss attributable to FAT Brands Inc. $ (45,969) $ (38,316)
Dividends on preferred shares (2,231) (1,881)
$ (48,200) $ (40,197)
Basic and diluted loss per common share $ (2.73) $ (2.37)
Basic and diluted weighted average shares outstanding 17,632,860  16,947,400 
Cash dividends declared per common share $ —  $ 0.14 




FAT Brands Inc. Consolidated EBITDA and Adjusted EBITDA Reconciliation
Thirteen Weeks Ended
(In thousands) March 30, 2025 March 31, 2024
Net loss attributable to FAT Brands Inc. $ (45,969) $ (38,316)
Interest expense, net 35,862  34,041 
Income tax provision 1,769  3,524 
Depreciation and amortization 10,391  10,194 
EBITDA 2,053  9,443 
Bad debt expense 230  168 
Share-based compensation expenses 367  745 
Non-cash lease expenses 341  630 
Refranchising (gain) loss (22) 1,508 
Litigation costs 6,864  3,807 
Severance —  22 
Net loss related to advertising fund deficit 569  2,282 
Net loss (gain) on extinguishment of debt 151  (427)
Pre-opening expenses 517  28 
Adjusted EBITDA $ 11,069  $ 18,207 




FAT Brands Inc. Adjusted Net Loss Reconciliation
Thirteen Weeks Ended
(In thousands, except share and per share data) March 30, 2025 March 31, 2024
Net loss attributable to FAT Brands Inc. $ (45,969) $ (38,316)
Refranchising (gain) loss (22) 1,508 
Net loss (gain) on extinguishment of debt 151  (427)
Litigation costs 6,864  3,807 
Severance —  22 
Tax adjustments, net (1) 278  497 
Adjusted net loss $ (38,698) $ (32,909)
Net loss $ (45,969) $ (38,316)
Dividends on preferred shares (2,231) (1,881)
$ (48,200) $ (40,197)
Adjusted net loss $ (38,698) $ (32,908)
Dividends on preferred shares (2,231) (1,881)
$ (40,929) $ (34,789)
Loss per basic and diluted share $ (2.73) $ (2.37)
Adjusted net loss per basic and diluted share $ (2.32) $ (2.05)
Weighted average basic and diluted shares outstanding 17,632,860  16,947,400 
(1) Reflects the tax impact of the adjustments using the effective tax rate for the respective periods.

EX-99.2 3 fatbrands-earningssupple.htm EX-99.2 fatbrands-earningssupple
Q1 2025 EARNINGS SUPPLEMENT MAY 8, 2025


 
LEGAL DISCLAIMER This earnings supplement 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 earnings supplement. We undertake no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of this earnings supplement. 2


 
Q1 2025 HIGHLIGHTS 3 1.8% Sales Decline (1) System-Wide -3.4% SSS Decline (2) System-Wide 23 New Store Openings (3) Q1 2025 $142.0mm Total Revenue Q1 2025 $11.1mm Adj. EBITDA (4) Q1 2025 $571.1mm System-Wide Sales (1) 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.. (2) 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. (3) 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 store openings has, and will continue to have, an impact on our results. (4) EBITDA is defined as earnings before interest, taxes, 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 income (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 gain or losses, 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. A reconciliation of net income presented in accordance with GAAP to EBITDA and adjusted EBITDA is set forth in the Appendix.


 
Q1 2025 RESULTS 4 (1) EBITDA is defined as earnings before interest, taxes, 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 income (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 gain or losses, 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. A reconciliation of net income presented in accordance with GAAP to EBITDA and adjusted EBITDA is set forth in the Appendix. Royalties $21.9mm $21.8mm Q1 2024 Q1 2025 Systemwide Sales Revenue $152.0mm $142.0mm Q1 2024 Q1 2025 Adj. EBITDA (1) $18.2mm $11.1mm Q1 2024 Q1 2025 $581.8mm $571.1mm Q1 2024 Q1 2025


 
2025 STRATEGIC FOCUS 5 Accelerate Build-Out of 1,000+ Unit New Store Pipeline Drive Adj. EBITDA Growth ~$10mm from New Stores ~$5mm from Factory Maintain Strong Liquidity Continue to Build Net Asset Value for Future Liquidity (Debt Reduction) Event Grow Factory Production to Utilize ~60% Excess Capacity via Expanded Organic Channels & 3rd Party Dough & Mix Manufacturing Re-franchise Fazoli’s 57 Company-Owned Restaurants


 
APPENDIX


 
DEFINITIONS “EBITDA,” a non-GAAP measure, defined as earnings before interest, taxes, 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 income (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. A reconciliation of net income presented in accordance with GAAP to EBITDA and adjusted EBITDA is set forth in the Appendix. “Adjusted EBITDA,” a non-GAAP measure, defined as EBITDA (as defined above), excluding expenses related to acquisitions, refranchising gain or losses, 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. A reconciliation of net income presented in accordance with GAAP to EBITDA and adjusted EBITDA is set forth in the Appendix. “Adjusted net loss,” a non-GAAP measure, 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 attributable to FAT Brands Inc. presented in accordance with GAAP to EBITDA, adjusted EBITDA and adjusted net loss are set forth in the Appendix. “Same-store sales growth” or “SSS” a non-GAAP measure, 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,” a non-GAAP measure, 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. I


 
CONSOLIDATED STATEMENT OF OPERATIONS II FAT Brands Inc. Consolidated Statements of Operations Thirteen Weeks Ended (In thousands, except share and per share data) March 30, 2025 March 31, 2024 Revenue Royalties $ 21,773 $ 21,947 Restaurant sales 99,415 105,938 Advertising fees 9,764 9,796 Factory revenues 8,811 9,474 Franchise fees 1,190 1,481 Other revenue 1,066 3,331 Total revenue 142,019 151,967 Costs and expenses General and administrative expense 33,043 30,005 Cost of restaurant and factory revenues 96,097 99,050 Depreciation and amortization 10,391 10,194 Refranchising (gain) loss (22) 1,508 Advertising fees 11,076 12,592 Total costs and expenses 150,585 153,349 Loss from operations (8,566) (1,382) Other (expense) income, net Interest expense (31,444) (29,623) Interest expense related to preferred shares (4,418) (4,418) Net (loss) gain on extinguishment of debt (151) 427 Other income, net 37 204 Total other expense, net (35,976) (33,410) Loss before income tax provision (44,542) (34,792) Income tax provision (1,769) (3,524) Net loss (46,311) (38,316) Less: Net loss attributable to non-controlling interest (342) — Net loss attributable to FAT Brands Inc. $ (45,969) $ (38,316) Net loss attributable to FAT Brands Inc. $ (45,969) $ (38,316) Dividends on preferred shares (2,231) (1,881) $ (48,200) $ (40,197) Basic and diluted loss per common share $ (2.73) $ (2.37) Basic and diluted weighted average shares outstanding 17,632,860 16,947,400 Cash dividends declared per common share $ — $ 0.14


 
CONSOLIDATED EBITDA & ADJ. EBITDA RECONCILIATION IV FAT Brands Inc. Consolidated EBITDA and Adjusted EBITDA Reconciliation Thirteen Weeks Ended (In thousands) March 30, 2025 March 31, 2024 Net loss attributable to FAT Brands Inc. $ (45,969) $ (38,316) Interest expense, net 35,862 34,041 Income tax provision 1,769 3,524 Depreciation and amortization 10,391 10,194 EBITDA 2,053 9,443 Bad debt expense 230 168 Share-based compensation expenses 367 745 Non-cash lease expenses 341 630 Refranchising (gain) loss (22) 1,508 Litigation costs 6,864 3,807 Severance — 22 Net loss related to advertising fund deficit 569 2,282 Net loss (gain) on extinguishment of debt 151 (427) Pre-opening expenses 517 28 Adjusted EBITDA $ 11,069 $ 18,207


 
ADJUSTED NET LOSS RECONCILIATION V FAT Brands Inc. Adjusted Net Loss Reconciliation Thirteen Weeks Ended (In thousands, except share and per share data) March 30, 2025 March 31, 2024 Net loss attributable to FAT Brands Inc. $ (45,969) $ (38,316) Refranchising (gain) loss (22) 1,508 Net loss (gain) on extinguishment of debt 151 (427) Litigation costs 6,864 3,807 Severance — 22 Tax adjustments, net (1) 278 497 Adjusted net loss $ (38,698) $ (32,909) Net loss $ (45,969) $ (38,316) Dividends on preferred shares (2,231) (1,881) $ (48,200) $ (40,197) Adjusted net loss $ (38,698) $ (32,908) Dividends on preferred shares (2,231) (1,881) $ (40,929) $ (34,789) Loss per basic and diluted share $ (2.73) $ (2.37) Adjusted net loss per basic and diluted share $ (2.32) $ (2.05) Weighted average basic and diluted shares outstanding 17,632,860 16,947,400 (1) Reflects the tax impact of the adjustments using the effective tax rate for the respective periods.


 
CONTACT INVESTOR RELATIONS: MEDIA RELATIONS: ICR MICHELLE MICHALSKI IR-FATBRANDS@ICRINC.COM 646-277-1224 FAT BRANDS ERIN MANDZIK EMANDZIK@FATBRANDS.COM 860-212-6509