FAT Brands Q2 revenue drops less than expected

Fat Brands

30/07/2025 21:16

Overview

FAT Brands fiscal Q2 revenue declines 3.4% yr/yr, beats analyst expectations

Adjusted net loss for fiscal Q2 misses analyst estimates, per LSEG data

Co opened 18 new locations, pursuing strategic initiatives for cash flow improvement

Outlook

Company aims for cash flow positive status in coming quarters

FAT Brands plans over 100 restaurant openings this year

Company pursuing strategic partnerships to expand manufacturing capacity

FAT Brands converting bonds to interest-only to save $30-$40 mln annually

Result Drivers

STORE OPENINGS - 18 new locations opened in Q2, including co-branded stores, contributing to growth strategy

DIGITAL SALES - Digital initiatives boost sales at Great American Cookies and Round Table Pizza, with significant loyalty-driven growth

FINANCIAL STRATEGIES - Bond conversion and G&A reductions aimed at improving cash flow, preserving capital

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$146.80 mln
$146.60 mln (2 Analysts)
Q2 Adjusted EPS
-$2.88
Q2 EPS
-$3.17
Q2 Adjusted Net Income
Miss
-$49 mln
-$39 mln (2 Analysts)
Q2 Net Income
-$54.20 mln
Q2 Adjusted EBITDA
Beat
$15.70 mln
$14.20 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 $12.50, about 80.8% above its July 29 closing price of $2.40

Press Release: ID:nGNXLnnJq

(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.)