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FAT Brands Inc. is a leading multi-brand restaurant franchising company that develops, markets, acquires, and manages restaurant concepts across various dining categories, including quick-service, fast casual, casual dining, and polished casual dining. The company operates globally, focusing on franchising as its primary business model, characterized by an asset-light approach. FAT Brands generates revenue through initial franchise fees, ongoing royalties, and advertising revenue, while minimizing risks associated with restaurant operations.
- Restaurant Sales - Operates company-owned restaurants, selling food and beverages directly to consumers.
- Royalties - Collects franchise royalties from franchised restaurant locations.
- Advertising Fees - Gathers fees from franchisees for advertising purposes.
- Factory Revenues - Generates income from factory operations.
- Franchise Fees - Charges fees to franchisees for the right to operate under FAT Brands' names.
- Other Revenue - Includes miscellaneous revenue sources contributing to the overall business.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Allen Z. Sussman Executive | General Counsel | Allen Z. Sussman has served as General Counsel, Secretary, and EVP for Corporate Development at FAT Brands since March 2021. He built his distinguished career in corporate and securities law through roles at Loeb & Loeb LLP and the SEC during the early 1990s. | ||
Kenneth J. Kuick Executive | Co-Chief Executive Officer | Kenneth J. Kuick has served as the Co-Chief Executive Officer of FAT Brands since May 5, 2023 and as the Chief Financial Officer since May 31, 2021. | ||
Robert G. Rosen Executive | Co-Chief Executive Officer and Head of Debt Capital Markets | Long-term consultant; Advisory board and committee member at Black Diamond Capital Management | Robert G. Rosen is the Co-Chief Executive Officer and Head of Debt Capital Markets at FAT Brands since May 2023. Previously, he served as Executive Vice President of Capital Markets from April 2021 to May 2023, bringing over three decades of experience in structured finance and investment banking. | |
Ron Roe Executive | Senior Vice President of Finance | Ron Roe currently serves as the Senior Vice President of Finance at FAT Brands since August 16, 2018. Previously, he was the Chief Financial Officer from 2009 to August 16, 2018 and the Vice President of Finance from 2007 to 2009 at FAT Brands. |
- Given the significant revenue and EBITDA fluctuations due to the extra operating week in prior quarters, what specific strategies does management have to mitigate timing discrepancies and improve quarterly comparability?
- With the refinancing of Twin Peaks debt and plans to raise equity at Twin Hospitality, how does management envision the long-term impact on deleveraging the balance sheet while ensuring sustainable growth?
- In light of the reported $2.6 million operating loss from Smokey Bones closures and conversion challenges, what are the detailed plans to prevent further impairments and optimize the performance of converting units?
- Considering the delays in new restaurant openings due to franchisee financing and construction issues, what concrete steps are being taken to accelerate the pipeline toward the targeted 100+ openings in 2025?
- As litigation expenses have notably dropped and there is an expectation of resolving most legal matters by Q2, can management provide more detail on the anticipated out-of-pocket cash costs and contingency plans if settlements prove delayed?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Barbeque Integrated, Inc. | 2023 | Acquired on September 25, 2023 for a net purchase price of $31.8 million paid in cash with adjustments for working capital to be finalized within 75 days after closing; this deal added a chain of barbeque restaurants in the Eastern and Midwest U.S., enhancing FAT Brands’ geographic footprint. |
Nestlé Toll House Café by Chip Franchise Business (rebranded as Great American Cookies) | 2022 | Agreed on May 24, 2022 with an initial payment of $1.8 million and a final price determined by January 31, 2024; the acquisition added approximately 85 cafes to be rebranded, strategically expanding FAT Brands’ presence in the cookie and dessert segment, improving manufacturing synergies and expected EBITDA through internal production efficiencies. |
Recent press releases and 8-K filings for FAT.
- The company reported a net loss of $46.0mm (or $2.73 per diluted share) with adjusted EBITDA at $11.1mm, down from $18.2mm in Q1 2024 .
- Total revenue declined by 6.5% to $142.0mm, with systemwide sales reaching $571.1mm and sales dropping 1.8% due to lower same-store sales and operational adjustments .
- Executed the spin‐off of Twin Hospitality Group—delivering a $50mm dividend—and announced leadership changes, with Rob Rosen moving to a consulting role and Taylor Wiederhorn named Co-CEO .
- The cookie production facility is targeting increased utilization from 40%-45% to 60%-70%, aiming to raise annual EBITDA from ~$15mm to $25mm to support future debt reduction .
- Advanced refranchising plans for Fazoli’s aim to generate $20-25mm in value and reduce overhead by up to $3.5mm per year, with initiatives covering 57 restaurants .
- Strategic growth was further evidenced by the opening of 23 new stores in Q1 2025 .
- FAT Brands appointed Taylor Wiederhorn as Co-Chief Executive Officer effective April 29, 2025, with Rob Rosen transitioning from his Co-CEO role to serve as an outside consultant focused on debt/capital markets.
- Ken Kuick will continue his role as Co-CEO and Chief Financial Officer, ensuring ongoing financial management, while Rosen will receive a monthly consulting fee of $45,833.33.
- FAT Brands Inc. filed an 8-K current report dated March 28, 2025, outlining its schedule for submitting unaudited quarterly and audited annual financial statements in accordance with GAAP.
- The report details the Manager’s responsibilities and includes exhibits on monthly management certificates and fee accrual mechanisms, covering aspects such as investment income and debt servicing accounts.
- It also provides representations and warranties affirming the company’s organizational compliance, absence of litigation, and adherence to regulatory and statutory requirements.
- FAT Brands Inc. declared a special stock dividend on January 16, 2025, awarding holders of FAT Common Stock with 0.1520207 shares of Twin Hospitality Group Inc.’s Class A Common Stock, with distribution completed on January 29, 2025.
- On the ex-dividend date, NASDAQ adjusted the FAT Common Stock opening price downward by $2.599553 per share, prompting the Board on March 18, 2025 to reduce the exercise prices of outstanding warrants and stock options accordingly.
- Effective March 18, 2025, as reported in the 8-K filing, the Board declared a monthly cash dividend of $0.171875 per share on its 8.25% Series B Cumulative Preferred Stock for March 2025.
- The preferred stock dividend is payable on April 21, 2025.
- Q4 2024 Financial Performance: Revenue declined 8.4% to $145.3 million, with a net loss of $67.4 million and adjusted EBITDA of $14.4 million, reflecting operational challenges .
- Operational Metrics: Q4 saw system-wide sales of $580.2 million, with a 7.4% decline in sales and a 1.6% drop in same-store sales, accompanied by 30 new store openings .
- Twin Hospitality Spin-Off: Completed distribution of 5% of Class A common stock to shareholders, enabling Twin Hospitality (TWNP) to trade on NASDAQ and creating a $50 million dividend impact .
- Full-Year 2024 Overview: Despite a net loss of $189.8 million, full-year revenue increased to $592.7 million as the company advanced refranchising initiatives toward a nearly 100% franchised model .
- Strategic Initiatives: Management focused on aggressive debt reduction via refinancing and equity raises, and converted Smokey Bones locations into Twin Peaks .
- Longer-Term Momentum: Year-to-date results show 3.1% sales growth with 92 new store openings, indicating sustained growth despite the quarterly decline .
- Fat Brands, Inc. announced on February 18, 2025 that its Board of Directors declared a monthly cash dividend of $0.171875 per share on its 8.25% Series B Cumulative Preferred Stock for the period ending February 28, 2025.
- The dividend is scheduled to be paid on March 20, 2025 to stockholders of record as of March 10, 2025, as detailed in the Form 8-K filing.