Fat Brands | 10-Q: FY2025 Q2 Revenue Beats Estimate at USD 146.84 M

Revenue: As of FY2025 Q2, the actual value is USD 146.84 M, beating the estimate of USD 146.6 M.

EPS: As of FY2025 Q2, the actual value is USD -3.17, missing the estimate of USD -2.18.

Segment Revenue

• Royalties: $43.9 million for the twenty-six weeks ended June 29, 2025, compared to $45.3 million for the same period in 2024.
• Restaurant Sales: $201.8 million for the twenty-six weeks ended June 29, 2025, compared to $213.3 million for the same period in 2024.
• Advertising Fees: $19.4 million for the twenty-six weeks ended June 29, 2025, compared to $19.9 million for the same period in 2024.
• Factory Revenues: $19.1 million for the twenty-six weeks ended June 29, 2025, compared to $19.1 million for the same period in 2024.
• Franchise Fees: $2.3 million for the twenty-six weeks ended June 29, 2025, compared to $2.6 million for the same period in 2024.

Operational Metrics

• Net Loss: - $101.7 million for the twenty-six weeks ended June 29, 2025, compared to - $77.7 million for the same period in 2024.
• Loss from Operations: - $24.1 million for the twenty-six weeks ended June 29, 2025, compared to - $4.1 million for the same period in 2024.
• General and Administrative Expense: $77.5 million for the twenty-six weeks ended June 29, 2025, compared to $59.6 million for the same period in 2024.
• Cost of Restaurant and Factory Revenues: $194.1 million for the twenty-six weeks ended June 29, 2025, compared to $199.2 million for the same period in 2024.

Cash Flow

• Net Cash Used in Operating Activities: - $40.1 million for the twenty-six weeks ended June 29, 2025, compared to - $42.6 million for the same period in 2024.
• Net Cash Used in Investing Activities: - $2.4 million for the twenty-six weeks ended June 29, 2025, compared to - $18.2 million for the same period in 2024.
• Net Cash Provided by Financing Activities: $19.1 million for the twenty-six weeks ended June 29, 2025, compared to $42.0 million for the same period in 2024.

Future Outlook and Strategy

• Core Business Focus: The company plans to cover working capital requirements for the next twelve months through cash flows from operations, cash on hand, and issued but not sold aggregate principal amount of fixed rate secured notes.
• Non-Core Business: The company is involved in a worldwide expansion of franchise locations, which will require significant liquidity primarily from franchisees.

Priority

• The company emphasizes the need for additional forms of financing through the issuance of debt or equity if the operating plan is not achieved.