The following is a summary of the FAT Brands Inc. (FAT) Q1 2024 Earnings Call Transcript:
Financial Performance:
FAT Brands reported Q1 2024 revenue of $152 million, a 43.8% increase year-over-year, primarily driven by the acquisition of Smokey Bones.
System-wide sales also increased, rising by 4.8% to $581.8 million against the prior year.
Q1 2024 EBITDA is $9.4 million, marking an increase of $1.7 million compared to Q1 2023. However, adjusted EBITDA was slightly lower.
Costs and expenses also increased, up by 45.6%, which resulted in a net loss of $38.3 million, or $2.37 per diluted share.
Business Progress:
The company expanded its footprint massively over the last three years, now having 18 concepts across 2,300+ locations worldwide.
There were 16 new units opened in Q1 2024, with an additional 44 anticipated in the next quarter. The total new unit forecast for 2024 is between 125 to 150, marking a potential 20% increase from 2023.
The company plans to grow the Smokey Bones brand considerably and is progressing on plans for Twin Peaks' IPO.
FAT Brands aims to open about 44 new stores by the end of June, despite fewer new store openings in Q1 due to unfavorable weather conditions.
More details: FAT Brands IR
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