Overview
FAT Brands fiscal Q3 revenue declines 2.3% yr/yr, missing analyst expectations
Adjusted EBITDA for fiscal Q3 misses analyst estimates, indicating operational challenges
Company focuses on co-branding and partnerships for future growth
Outlook
Company expects $50-$60 mln incremental EBITDA from 900 committed locations
Company advancing $75-$100 mln equity raise to pay down debt
Company sees positive cash flow in upcoming quarters
Result Drivers
CO-BRANDING SUCCESS - Co-branding initiatives, such as the dual-branded Round Table Pizza and Fatburger location, have doubled weekly sales and transactions, highlighting potential for growth
STRATEGIC EXPANSION - 60 new restaurant openings this year and a pipeline of 900 committed locations are expected to drive future growth
FINANCIAL RESTRUCTURING - Efforts to restructure debt and pause dividends aim to preserve cash flow and reduce overall debt
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $140 mln | $144.90 mln (2 Analysts) |
Q3 Adjusted EPS | -$2.67 | ||
Q3 EPS | -$3.39 | ||
Q3 Adjusted Net Income | Miss | -$45.4 mln | -$34.90 mln (2 Analysts) |
Q3 Net Income | -$58.2 mln | ||
Q3 Adjusted EBITDA | Miss | $13.1 mln | $17.30 mln (1 Analyst) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for FAT Brands Inc is $10.00, about 82.5% above its November 4 closing price of $1.75
Press Release: ID:nGNX9761D5
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)