FAT Brands Inc. reported a significant increase in revenue for the fiscal year ending December 29, 2024, totaling $592.7 million, up from $480.5 million in the previous year. This growth was primarily driven by the acquisition of Smokey Bones in September 2023 and the opening of new restaurant locations. However, the company also experienced a net loss of $189.8 million, compared to a net loss of $90.1 million in the prior fiscal year. The increase in losses was attributed to higher costs associated with the acquisition, increased operational expenses, and a substantial impairment charge of $30.6 million related to goodwill and other intangible assets.
The company's operational metrics showed that as of December 29, 2024, FAT Brands had approximately 2,300 restaurants open or under construction, with over 730 franchise partners. The system-wide sales for both franchised and owned locations reached $2.4 billion. Despite the growth in revenue, the company's general and administrative expenses rose sharply to $128.6 million from $93.1 million, largely due to increased professional fees related to ongoing litigation and the integration of new acquisitions.
Strategically, FAT Brands has focused on expanding its portfolio through acquisitions and enhancing its existing brands. The company has developed a pipeline of approximately 1,000 restaurants under development, indicating a strong demand for its franchise offerings. Additionally, the company is pursuing international expansion, particularly in the Middle East and Asia, to capitalize on the global appeal of its restaurant concepts. The recent spin-off of Twin Hospitality Group Inc., which began trading independently on NASDAQ, is expected to provide additional capital and operational flexibility.
Looking ahead, FAT Brands aims to optimize its capital structure and continue its growth trajectory through both organic expansion and strategic acquisitions. The company has indicated that it will focus on improving its financial performance and managing its debt obligations, which stood at approximately $1.3 billion as of the end of the fiscal year. The management remains optimistic about future growth, contingent on successful execution of its business strategies and market conditions.
About Fat Brands, Inc
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