FAT Brands Inc.

Q3 2025 total revenues were $140 million, down 2.3% from $143.4 million a year ago. Adjusted EBITDA was $13.1 million versus $14.1 million in the prior-year quarter. Net loss attributable to FAT Brands was $58.2 million, or $3.39 per diluted share, compared with a loss of $44.8 million, or $2.74 per diluted share last year; on an as-adjusted basis, net loss was $45.4 million, or $2.67 per diluted share, versus $38 million, or $2.34 per diluted share. General and administrative expense rose to $42.7 million from $34.5 million, and total other expense net was $41 million versus $35.8 million. Guidance and outlook: management said it is advancing plans for a $75 million to $100 million equity raise at Twin Peaks to pay down debt and fund development, expects the dividend pause to preserve $35 million to $40 million annually in cash flow, said the legal resolutions provide at least $30 million a year in annual savings, and reiterated a target of 80 new openings this year. It also said it is on track to complete 100 remodels this year and expects final court approval of the derivative settlement in December.

Andy Wiederhorn’s message was centered on resetting the company after legal overhangs and moving back to execution. He emphasized that the DOJ dismissal and derivative-case settlement let management focus on shareholder value, balance-sheet repair, and growth across three pillars: organic development, acquisitions, and manufacturing scale-up. His tone was upbeat but pragmatic, noting restaurant-sector headwinds and saying the company is trying to push through a “restaurant recessionary environment” with cost discipline and franchise development.

Ken Kuick focused on the quarter’s financial pressure points: revenue of $140 million, G&A of $42.7 million, total other expense net of $41 million, and adjusted EBITDA of $13.1 million. He attributed higher G&A largely to a $6.9 million store closure reserve and a $1.4 million noncash impairment tied to Smokey Bones closures, while cost of restaurant and factory revenues fell to $94.6 million from $96.8 million. He also pointed to operating leverage opportunities in the Georgia facility, which generated $9.6 million in sales and $3.8 million in adjusted EBITDA at a 39.6% margin, while operating at only 45% of capacity.

Analysts pressed on the timing of the debt restructuring and equity raise, and management said it hopes to resolve restructuring during the current quarter, but the Twin Peaks equity raise is delayed by the government shutdown and will move once the government reopens. Questions also focused on Smokey Bones closures, Fazoli’s refranchising, and whether the 2025 new-store target would be cut; management said all planned Smokey Bones closures are done for now, Fazoli’s refranchising has made material progress, and store openings are slowing mainly because franchisees are taking longer to open rather than because projects are being canceled. On Twin Peaks, management said restaurant-level margins are a top priority and could move well beyond 17% over the next couple of quarters as initiatives and leadership changes take hold.