The following is a summary of the FAT Brands Inc. (FAT) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Reported total revenue of $143.4 million, up 31.1% year-over-year, substantially due to the acquisition of Smokey Bones.

• System-wide sales increased to $600.7 million, marking a 6.4% increase from the previous year.

• Adjusted EBITDA was $14.1 million, a decrease from $21.9 million in the previous year's quarter.

• Net loss widened to $44.8 million, or $2.74 per diluted share, compared to a net loss of $24.7 million, or $1.59 per diluted share, the previous year.

Business Progress:

• Expanded the brand portfolio to 18 concepts, with over 2,300 locations in 40 countries and 49 U.S. states or territories.

• To drive growth, emphasized digital marketing and committed to enhancing guest experiences.

• Opened 22 new units in the third quarter, with plans for approximately 40 more in Q4 2024, and have signed deals to open about 1,000 new units in the coming years. This expansion is expected to boost annual adjusted EBITDA by $50 million to $60 million.

• Converted one Smokey Bones location to a Twin Peaks lodge, with plans for seven more conversions in 2025. Twin Peaks continues to perform well, with plans to open 19 new lodges in 2025.

• Utilizing their Georgia-based manufacturing facility for increased cookie dough and dry mix production, part of a strategic focus on operational efficiency and maximizing current assets.

• Continues to strengthen community and franchisee relations through innovative partnerships and programs, such as DonationScout for streamlined fundraising.

Opportunities:

• Acquisition of Smokey Bones designed to fuel rapid expansion of Twin Peaks by converting existing locations, significantly reducing construction time and related costs.

Risks:

• Significant pressures from operating losses and the performance challenges of acquired Smokey Bones locations.

• System-wide challenges in converting declining franchises such as Smokey Bones into profitable units.

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