In the third quarter (Q3) of 2023, FAT Brands recorded a net loss of $24.65 million, marking a slight increase from the $23.44 million net loss reported in the same period last year.
The company reported an adjusted net loss of $17.1 million for the quarter, which is slightly higher than the $16.3 million adjusted net loss from the same period in the previous year.
In the quarter ending on September 24, 2023, the company experienced a 6% increase in total revenue, reaching $109.4 million compared to $103.2 million in Q3 of the previous year.
The company credited the revenue growth to several factors: a 4.8% uptick in royalties, a 2% rise in revenue from company-owned restaurants, a remarkable 228.5% surge in franchise fees, and an 18.9% increase in income from its manufacturing facility.
In the quarter, FAT Brands achieved a system-wide sales growth of 0.8% compared to the fiscal quarter of the previous year.
In Q3, the year-to-date system-wide same-store sales increased by 1.3%.
The company reported the opening of 30 new stores in the third quarter of fiscal year 2023.
In the quarter, FAT Brands’ adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $21.9 million, a decrease from the $24.6 million reported in the year-ago quarter.
FAT Brands co-chief executive officer Rob Rosen said, “While franchise interest remains high across all of our brands, we continue to be focused on the expansion of Twin Peaks. This year, we plan to open 15 to 17 new lodges, of which 11 have been opened so far.
“We expect to end the year with over 110 lodges, a 35% increase since acquiring the brand in 2021.
“Our growth pipeline includes over 125 lodges and Smokey Bones’ healthy real estate portfolio provides us with the opportunity to convert over 40 locations into Twin Peaks lodges, with the potential to significantly accelerate the growth of the brand.”