FAT Brands Reports $142M Revenue Decline and $46.3M Net Loss for Thirteen Weeks Ended March 30, 2025

FAT Brands Inc. reported a total revenue of $142.0 million for the thirteen weeks ended March 30, 2025, a decrease of 6.5% from $151.9 million in the same period last year. The decline was primarily attributed to reduced restaurant sales, which fell to $99.4 million from $105.9 million, driven by planned closures for restaurant conversions. The company also experienced a net loss of $46.3 million, compared to a net loss of $38.3 million in the prior year, reflecting increased general and administrative expenses and interest costs.

In terms of operational metrics, FAT Brands' total costs and expenses decreased slightly to $150.6 million from $153.3 million year-over-year. General and administrative expenses rose by 10.1% to $33.0 million, largely due to higher professional fees related to ongoing litigation. The company reported a loss from operations of $8.6 million, a significant increase from the $1.4 million loss recorded in the same quarter of 2024. The effective tax rate for the quarter was 4.0%, down from 10.1% in the previous year, primarily due to increases in the valuation allowance and nondeductible expenses.

Strategically, FAT Brands continues to focus on its franchising model, which comprises approximately 92% of its 2,300 locations. The company is actively pursuing geographic expansion and brand acquisitions to enhance its portfolio, which includes 18 restaurant brands such as Fatburger and Johnny Rockets. The recent spin-off of Twin Hospitality Group Inc. on January 29, 2025, allowed FAT Brands to distribute shares of Twin Common Stock to its shareholders, further streamlining its operations and focusing on core brands.

The company’s liquidity position remains a concern, with cash and restricted cash totaling $59.3 million as of March 30, 2025, down from $67.4 million at the end of the previous fiscal year. FAT Brands reported negative cash flow from operations of $13.2 million, an improvement from $28.4 million in the prior year, indicating some progress in managing operational costs. However, the company has acknowledged the need for additional financing to support its growth strategy and meet working capital requirements, particularly in light of its accumulated deficit of $499.4 million.

Looking ahead, FAT Brands anticipates that its ongoing efforts to optimize operations and expand its franchise network will be crucial for improving financial performance. The company plans to leverage its existing cash flows and access to capital markets to fund future growth initiatives. However, management has cautioned that achieving its operational goals will depend on favorable market conditions and the successful execution of its strategic plans.