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FAT Brands (FAT) investor relations material

FAT Brands Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary30 Jul, 2025

Executive summary

  • Q2 2025 revenue declined 3.4% year-over-year to $146.8M, mainly due to closures and lower same-store sales; 18 new stores opened, supporting future growth.

  • System-wide sales reached $592.2M, down 3.7% year-over-year; adjusted EBITDA was $15.7M, flat year-over-year.

  • Net loss attributable to shareholders was $54.2M ($3.17/share), compared to $39.4M ($2.43/share) last year; adjusted net loss was $49M ($2.88/share).

  • Portfolio includes 2,300 locations in 49 states and 35 countries, with 92% franchised and a pipeline of 1,000 committed new locations.

  • Recognized on Time and Statista's best mid-sized company list; 10 brands on Technomic's top 500.

Financial highlights

  • Royalties increased to $23.3M from $22.2M year-over-year; restaurant sales and advertising fees saw slight decreases.

  • G&A expense rose to $44.4M from $29.6M, driven by a one-time $12.6M non-cash share-based comp and litigation costs.

  • Cost of revenues decreased to $98.1M, reflecting store closures and lower sales, partially offset by inflation.

  • Interest expense increased to $39.4M in Q2 2025 from $34.0M in Q2 2024.

  • Cash and restricted cash at June 29, 2025 was $43.9M, down from $67.4M at year-end 2024.

Outlook and guidance

  • Targeting cash flow positive status in coming quarters through cost reductions, refinancing, and legal savings.

  • On track to open over 100 new locations in 2025, supported by a robust pipeline of 1,000 committed deals.

  • Continued focus on deleveraging, refinancing securitization silos ahead of July 2026, and cost optimization.

  • Management expects sufficient liquidity for the next twelve months through cash on hand, operations, and capital markets.

  • Expansion of franchise locations continues, but timing may be affected by real estate and capital availability.

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Frequently asked questions

FAT Brands Inc. is a global franchising company specializing in the acquisition, marketing, and development of fast-casual and casual dining restaurant brands. The company's portfolio includes well-known names in the restaurant industry, with locations operating things such as burgers, wings, and sandwiches. FAT Brands supports its franchisees with operational resources, marketing programs, and supply chain management. The company is headquartered in Beverly Hills, California, and its shares are listed on the NASDAQ.

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