FAT Brands Inc (FAT) 2025 Q1 法說會逐字稿

Greetings and welcome to the FAT Brand Inc. First quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. A question answering session will follow the formal presentation.

問候並歡迎參加 FAT Brand Inc. 2025 年第一季財報電話會議。此時，所有參與者都處於只聽模式。正式演講結束後將有問答環節。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded. At this time, I'd like to turn the call over to Ken Kuick, my friend CFO. Please proceed.

提醒一下，本次會議正在錄製中。現在，我想將電話轉給我的朋友 CFO Ken Kuick。請繼續。

Good afternoon, everyone, and thank you for joining the Fat Branch earnings call today. On the call with me today is Andy Weiderhorn, our Chairman of the board.

大家下午好，感謝大家參加今天的 Fat Branch 財報電話會議。今天與我一起通話的是我們的董事會主席安迪·韋德霍恩 (Andy Weiderhorn)。

This afternoon we released our first quarter of 2025 results. Please refer to the earnings release and earnings supplement, both of which are available in the investor section of the company's website at www.fatbrands.com. Each contained additional details about the first quarter, which closed on March 30, 2025.

今天下午我們發布了 2025 年第一季的業績。請參閱收益報告及收益補充文件，皆可至本公司網站 www.fatbrands.com 的投資人專區查閱。每份報告均包含有關截至 2025 年 3 月 30 日的第一季的更多詳細資訊。

Before I begin, I must remind everyone that part of the discussion today will include forward-looking statements. These forward-looking statements are not guarantees of future performance and therefore undue reliance should not be placed upon them. Actual results may differ materially from those indicated by these forward-looking statements due to a number of risks and uncertainties. The company does not undertake to update these forward-looking statements at a later date.

在開始之前，我必須提醒大家，今天的討論部分將包括前瞻性陳述。這些前瞻性陳述並非對未來績效的保證，因此不應過度依賴它們。由於存在許多風險和不確定性，實際結果可能與這些前瞻性陳述所示的結果有重大差異。本公司不承諾在日後更新這些前瞻性陳述。

For a more detailed discussion of the risks that could impact future operating results and financial condition, please see today's earnings release and recent SEC filings. During today's call, the company will also discuss non-gap financial measures which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation nor as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are available in today's earnings release. I'd like to turn the call over now to Andy Weiderhorn, our Chairman of the board.

有關可能影響未來經營業績和財務狀況的風險的更詳細討論，請參閱今天的收益報告和最近的美國證券交易委員會文件。在今天的電話會議上，公司還將討論我們認為有助於評估我們績效的非差距財務指標。不應孤立地考慮這些附加資訊的呈現，也不應將其視為按照 GAAP 編制的結果的替代。在今天的收益報告中提供了與可比較 GAAP 指標的對帳表。現在我想將電話轉給我們的董事會主席安迪·韋德霍恩 (Andy Weiderhorn)。

Thanks, Ken.

謝謝，肯。

Thank you all for joining us today. I'd like to extend my sincere appreciation to our talented team members and franchise partners. Their dedication to FAT Brands has been instrumental in driving our continued progress, and I'm encouraged by what we are accomplishing together. I also want to take a moment to recognize Rob Rosen and his commitment to FAT Brands. Rob's decided to transition from his co-CEO role to a consulting position at FAT Brands, focused on the debt capital markets. Taylor Wiederhorn has been appointed co-CEO serving alongside Ken Kuick.

感謝大家今天的參與。我要向我們才華洋溢的團隊成員和特許經營夥伴表達最誠摯的感謝。他們對 FAT Brands 的奉獻精神對於推動我們不斷進步起到了重要作用，而我們共同取得的成就令我感到鼓舞。我還想花點時間來表彰 Rob Rosen 和他對 FAT Brands 的承諾。Rob 決定從聯合執行長的職位轉變為 FAT Brands 的顧問職位，專注於債務資本市場。Taylor Wiederhorn 被任命為聯合首席執行官，與 Ken Kuick 共同任職。

In addition to serving as Chief Development Officer for the last 8 years, Taylor assumed the role of brand CEO for 15 of our concepts in 2023. That combined with his leadership background makes him well equipped to take on this role. As noted last quarter, we began 2025 by spinning of Twin Hospitality Group Inc. Which is now listed separately on NASAQ under the ticker Twin Peaks.

除了過去 8 年擔任首席開發長之外，泰勒還在 2023 年擔任我們 15 個概念的品牌執行長。再加上他的領導背景，他完全有能力擔任這一職位。正如上個季度所指出的，我們在 2025 年開始分拆 Twin Hospitality Group Inc.，該公司目前在 NASAQ 上單獨上市，股票代號為 Twin Peaks。

We distributed 5% of Twin Hospitality's Class A stock to shareholders, a USD50 million dividend, while retaining the remaining shares. This strategic move allows shareholders to invest directly in Twin Peaks growth, improves market transparency, and provides twin hospitality with access to additional capital for expansion and to reduce leverage through debt repayments.

我們向股東發放了 Twin Hospitality 5% 的 A 類股票，即 5,000 萬美元的股息，同時保留剩餘的股份。這項策略性舉措使股東能夠直接投資於 Twin Peaks 的成長，提高市場透明度，並為 Twin Peaks 提供額外的資本用於擴張並透過償還債務來降低槓桿率。

Following this significant milestone, Jo Joe Hummel decided to transition from his position as CEO. We wish him the best as he pursues new opportunities. We have initiated a comprehensive executive search for a new leader who will capitalize on our ambitious development pipeline of over 100 lodges. Twin Peaks growth trajectory remains strong.

在這一重要里程碑之後，Jo Joe Hummel 決定辭去執行長一職。我們祝福他在尋求新機會的過程中一切順利。我們已開始全面尋找新的領導者，以帶領我們雄心勃勃的 100 多家旅館的發展計劃。雙峰的成長軌跡依然強勁。

In the meantime, Ken Kuick, CFO of Twin Hospitality Group Inc. Will serve as interim CEO, ensuring continuity and strategic advancement during this transition.

同時，Twin Hospitality Group Inc. 財務長 Ken Kuick 將擔任臨時首席執行官，確保過渡期間的連續性和策略進步。

Following the twin hospitality group bond refinancing in Q4 of last year, we committed to raising between USD75 million and USD100 million of equity in 2025 and using 75% of that, or USD75 million to reduce outstanding debt, at which point twin hospitality should be cash flow positive, excluding new corporate store development. While we anticipated securing the first of one-third of that amount by April, the current volatile market conditions have impacted our near-term ability to do so at a reasonable price.

繼去年第四季 Twin Hospitality 集團債券再融資之後，我們承諾在 2025 年籌集 7500 萬美元至 1 億美元的股權，並使用其中的 75%（即 7500 萬美元）來減少未償債務，屆時 Twin Hospitality 的現金流應為正值（不包括新公司門店開發）。雖然我們預計到四月可以確保其中三分之一的首批資金，但當前動盪的市場狀況影響了我們近期以合理價格完成這項任務的能力。

Despite this temporary timing adjustment, we are confident in achieving our full annual equity target rates over the next 12 months. Additionally, per the terms of our November 2024 new Twin Hospitality indenture, we've temporarily paused Fat's common dividend and started to accrue the Fat Series B preferred dividend pursuant to its terms. At least until we reduce principal on the indenture by the USD25 million payment threshold.

儘管進行了暫時的時間調整，但我們有信心在未來 12 個月內實現全年股權目標利率。此外，根據我們 2024 年 11 月新的 Twin Hospitality 契約條款，我們暫時暫停了 Fat 的普通股股息，並開始根據其條款累積 Fat B 系列優先股股息。至少直到我們將契約本金減少到 2500 萬美元的支付門檻。

Additionally, we are now turning our attention to the refinancing of our other three securitization silos, all of which have an anticipated repayment date of July of 2026. We are focused on bringing Fat, which is a high growth business, into a cash flow positive position over the coming quarters, as well as further reducing leverage. We have reduced SGNA by over USD5 million a year based upon our 2024 run rate and see further opportunities within the portfolio to reduce costs, which I'll discuss in a few minutes. We look forward to updating you further on future calls. Like last quarter following this call, we invite you to listen to the twin hospitality group Q1 earnings call at 6 p.m. Eastern time. The details are contained within their earnings release also issued this afternoon.

此外，我們現在將注意力轉向其他三個證券化筒倉的再融資，所有這些筒倉的預計還款日期均為 2026 年 7 月。我們致力於讓高成長業務 Fat 在未來幾季內實現現金流為正，並進一步降低槓桿率。根據我們 2024 年的運行率，我們每年將 SGNA 減少 500 多萬美元，並在投資組合中看到更多降低成本的機會，我將在幾分鐘內討論這一點。我們期待在未來的通話中向您提供進一步的更新資訊。與上一季電話會議之後一樣，我們邀請您收聽美國東部時間下午 6 點舉行的雙胞胎酒店集團第一季財報電話會議。詳細資訊包含在他們今天下午發布的收益報告中。

Next, let's review our first quarter performance, which Ken will elaborate on shortly. Our total revenue for the quarter was USD142 million reflecting a 6.5% decrease from the USD152 million reported in the same period last year. System-WIde sales were USD571.1 million, down 1.8% compared to the previous year's quarter. We also achieved USD11.1 million and adjusted EBITDA that compared to USD18.2 million in last year's quarter. Domestic system-wide sales outperformed international for the quarter. However, we observed an encouraging rebound in our international locations towards the end of Q1, which gives us confidence moving forward.

接下來，讓我們回顧一下第一季的表現，Ken 將稍後詳細說明。本季我們的總營收為 1.42 億美元，比去年同期的 1.52 億美元下降 6.5%。全系統銷售額為 5.711 億美元，較去年同期下降 1.8%。我們也實現了 1,110 萬美元的調整後 EBITDA，而去年同期為 1,820 萬美元。本季國內全系統銷售額優於國際銷售額。然而，我們觀察到第一季末我們的國際業務出現了令人鼓舞的反彈，這給了我們繼續前進的信心。

Across our portfolio, we finished the quarter with strong momentum as sea sales improved across all brands from February to March. We're excited to build on this positive trajectory as we enter Q2 and progress through the remainder of the year. Our casual dining segment delivered particularly strong results with same store sales increasing approximately 1.6%, driven by performance at Buffalo's Cafe and Ponderosa Bonanza locations.

在我們的產品組合中，我們以強勁的勢頭結束了本季度，因為從 2 月到 3 月，所有品牌的海上銷售都有所改善。我們很高興能夠在進入第二季度並在今年剩餘時間內繼續保持這一積極軌跡。我們的休閒餐飲部門取得了特別強勁的業績，同店銷售額成長約 1.6%，這得益於 Buffalo's Cafe 和 Ponderosa Bonanza 門市的出色表現。

Overall, our growth strategy is based upon three fundamental elements. We're expanding our existing brand presence organically with commitments for over 1,000 new locations already in the pipeline. We are evaluating highly strategic acquisitions that would strengthen and broaden our brand portfolio as well as deliver our balance sheet. And we're enhancing our production capabilities at our Georgia facility, particularly focusing on scaling our cookie dough and dry mix manufacturing operations.

整體而言，我們的成長策略是基於三個基本要素。我們正在有機地擴大我們現有的品牌影響力，並承諾在 1,000 多個新地點開設門市。我們正在評估高度策略性的收購，這將加強和擴大我們的品牌組合併提供我們的資產負債表。我們正在增強喬治亞州工廠的生產能力，尤其專注於擴大餅乾麵團和乾混合料的生產業務。

Looking at our organic growth, we've maintained strong momentum after successfully opening 92 units throughout 2024, we're accelerating our expansion with a target of over 100 new locations this year. We're also making excellent headway with 23 units open in just the first quarter, which is an approximate 37% increase from Q1 of 2024. For Q2, we expect to open an additional 25 units, keeping us firmly on track to achieve our annual expansion goals.

從我們的有機成長來看，我們在 2024 年成功開設了 92 家門市後保持了強勁勢頭，我們正在加速擴張，目標是今年開設 100 多家新門市。我們也取得了巨大進展，光是第一季就開設了 23 家單位，比 2024 年第一季成長了約 37%。對於第二季度，我們預計將新增 25 家門市，從而堅定地實現年度擴張目標。

We are particularly encouraged by the momentum in our Twin Peaks new store development pipeline. During the first quarter, Twin Peaks opened two new lodges, including the Smokey Bones conversion in Brandon, Florida, and a new lodge in Algonquin, Illinois. Both new lodges are often strong starts.

Twin Peaks 新店開發通路的動能令我們特別鼓舞。第一季度，Twin Peaks 開設了兩家新旅館，包括佛羅裡達州布蘭登的 Smokey Bones 改建旅館和伊利諾州阿爾岡昆的新旅館。這兩家新旅館通常都是一個好的開始。

Based on our 2025 outlook, we expect measured growth across various brands, including Round Table Pizza, which delivered a modest yet positive 0.6% positive same store sales increase in the first quarter. Our digital sales at Round Table Pizza demonstrate particular strength, climbing 5% sequentially from Q4 to Q1 2025.

根據我們對 2025 年的展望，我們預計各個品牌都將穩定成長，其中包括 Round Table Pizza，該品牌第一季的同店銷售額雖小但成長了 0.6%。Round Table Pizza 的數位銷售表現特別強勁，從 2025 年第四季到第一季季增 5%。

The 2024 digital integration of our Great American Cookies and Marble Slab Creamery has also yielded strong results, particularly via their new app with an increase in sales of 8% and an increase in average check size of 17.6%. Our franchise development pipeline remains robust. We signed agreements for approximately 1,000 additional locations. Based on our projections, these units could generate around USD50 million in incremental annual adjusted EBITDA once operational, which would strengthen our balance sheet and reduce our leverage position.

我們的 Great American Cookies 和 Marble Slab Creamery 在 2024 年的數位化整合也取得了強勁的業績，尤其是透過他們的新應用程序，銷售額增長了 8%，平均支票金額增長了 17.6%。我們的特許經營開發管道依然強勁。我們簽署了另外約 1,000 個地點的協議。根據我們的預測，這些部門一旦投入運營，每年可產生約 5000 萬美元的增量調整後 EBITDA，這將增強我們的資產負債表並降低我們的槓桿率。

This consistent development pipeline not only demonstrates the continued appeal of our brands but also creates a valuable opportunity for our franchise partners. Along with our robust development pipeline, we're enhancing the customer experience in our existing stores. We've launched a new remodelling initiative with the goal to refresh 5% of all stores in 2025, increasing to 10% in 2026.

這種持續的發展管道不僅證明了我們品牌的持續吸引力，也為我們的特許經營合作夥伴創造了寶貴的機會。隨著我們強大的開發管道的不斷完善，我們正在提升現有商店的客戶體驗。我們啟動了一項新的改造計劃，目標是到 2025 年更新 5% 的所有門市，到 2026 年增加到 10%。

Co-branding continues to be a large part of our growth strategy. We have successfully launched 10 co-branded and tri-branded models to date, demonstrating our commitment to innovate partnerships. In March, we celebrated the debut of our first roundtable pizza and Marble Slab Creamery pairing in Oakland, California. This location exemplifies our approach to seamless integration where Marbleslav's ice cream creates a perfect complement to roundtable pizza's offering guests a complete dining experience from the main course to dessert.

聯合品牌仍然是我們成長策略的重要組成部分。迄今為止，我們已成功推出了 10 款聯合品牌和三品牌車型，彰顯了我們致力於創新合作關係的承諾。三月份，我們在加州奧克蘭慶祝了我們的第一款圓桌披薩和 Marble Slab Creamery 組合的首次亮相。該地點體現了我們的無縫集成方法，其中 Marbleslav 的冰淇淋與圓桌披薩完美互補，為客人提供從主菜到甜點的完整用餐體驗。

Building on this momentum, we're accelerating our co-branding initiatives throughout 2025. We've already opened a tri-branded location featuring Great American Cookies, Marble Slab Creamery, and pretzel maker in the Dallas area. We also opened our first co-branded Great American Cookies and Marble Slab Creamery in Ohio.

基於這一勢頭，我們將在 2025 年加速推進聯合品牌計畫。我們已經在達拉斯地區開設了一家三品牌店，包括 Great American Cookies、Marble Slab Creamery 和椒鹽捲餅製造商。我們也在俄亥俄州開設了第一個聯合品牌的 Great American Cookies 和 Marble Slab Creamery。

Additional co-branding plans for 2025 include several new Fatburger, Buffalo's Express, and hot dig on a stick combination, as well as Fatburger and roundtable pizza pairings. These strategic combinations not only enhance the guest experience but also maximize operational efficiency and market presence, positioning us for continued growth.

2025 年的其他聯名品牌計劃包括幾種新的 Fatburger、Buffalo's Express 和熱挖棒組合，以及 Fatburger 和圓桌披薩搭配。這些策略組合不僅提升了客人體驗，而且最大限度地提高了營運效率和市場佔有率，為我們持續成長奠定了基礎。

International development continues to be a growth driver as well. During the quarter, Faberger announced a new partnership to open 30 locations across France over the next 3 years, including 5 in 2026. Also, more recently, a development agreement was signed with the same established franchise partner to open 10 Buffalo's Cafe fast casual locations in France with the 1st 3 units set to open by 2026. All in all, we have exceeded over 100 new stores sold year-to-date.

國際發展也持續成為成長動力。本季度，Faberger 宣佈建立新的合作夥伴關係，並計劃未來 3 年內在法國開設 30 家門市，其中 5 家將於 2026 年開設。此外，最近，該公司還與同一家特許經營合作夥伴簽署了一項開發協議，將在法國開設 10 家 Buffalo's Cafe 快餐休閒店，其中前 3 家預計將於 2026 年開業。總而言之，今年迄今為止，我們的新店銷售量已超過 100 家。

We continue to expand into non-traditional venues. Recently opening a fatburger at Dallas Fort Worth International Airport's American Airlines employee dining hall, the first restaurant franchise in an employee cafeteria at the airport. This strategic location represents a significant growth opportunity that could be replicated across other airports, as our burgers and fries are ideal for on the go dining. Our experienced partners for this location will be valuable as we scale this business model.

我們繼續向非傳統場所擴張。最近在達拉斯沃斯堡國際機場的美國航空員工餐廳開設了一家肥漢堡，這是該機場員工餐廳中第一家特許經營的餐廳。這個戰略位置代表著一個重大的成長機會，並且可以在其他機場複製，因為我們的漢堡和薯條非常適合外出用餐。當我們擴展這一商業模式時，我們在這個地點的經驗豐富的合作夥伴將發揮寶貴的作用。

We are also leaning into value. Fazoli's is offering fan favorite pasta dishes for just USD399 plus unlimited freshly baked signature breadsticks when dining in. A family of four can eat for only USD16. At Fatburger, we brought back the much-loved baby fat for only USD599.

我們也傾向價值。Fazoli's 提供深受顧客喜愛的義大利麵食，只要 399 美元，堂食還可無限量享用新鮮出爐的招牌麵包棒。一家四口吃飯只要16美元。在 Fatburger，我們僅以 599 美元的價格帶回了備受喜愛的嬰兒肥。

Well, these offers are attractive. It's the comprehensive value we deliver that truly makes a difference and resonates with our guests. Throughout our portfolio, we remain firmly committed to providing exceptional overall value, combining premium quality food with an outstanding guest experience.

嗯，這些優惠很有吸引力。我們提供的綜合價值真正發揮了作用並引起了客人的共鳴。在我們的整個產品組合中，我們始終堅定地致力於提供卓越的整體價值，將優質的食品與卓越的客戶體驗相結合。

We're excited to announce that later this year we'll be launching a portfolio-wide guest experience program that will set new industry standards, and it is specifically designed to cultivate lasting brand loyalty.

我們很高興地宣布，今年稍後我們將推出一個涵蓋整個投資組合的客戶體驗計劃，該計劃將樹立新的行業標準，並專門用於培養持久的品牌忠誠度。

We continue to strengthen our balance sheet. In April, we amended our Fasoli securitization, resulting in improved terms that enhance our financial flexibility. The amended terms have extended both the call date and repayment date while relaxing certain covenants, providing us with greater operational flexibility for Fazolis.

我們繼續加強我們的資產負債表。今年 4 月，我們修改了 Fasoli 證券化條款，從而增強了我們的財務靈活性。修改後的條款延長了贖回日期和還款日期，同時放寬了某些契約，為 Fazolis 提供了更大的營運彈性。

The new agreement also permits the sale of corporate owned stores to franchisees, allowing us to re-franchise our 57-company owned and operated Fasoli's restaurants. Refranchising Fasoli's coupled with the spinoff of Twin Hospitality Group, which includes all Twin Peaks and Smokey Bones locations, will significantly reduce our corporate owned footprint and provide additional overhead savings of approximately USD2.5 million per year. If we were to act upon this refranchising opportunity, we would retain only about 33 hotdogs on a stick corporate location out of our total portfolio of 2,300 locations, or 2,125 locations if Twin Peaks and Smokey Bones are excluded. These strategic moves will return us to an almost 100% franchise business model.

新協議還允許將公司擁有的商店出售給特許經營商，使我們能夠重新特許經營我們公司擁有和經營的 57 家 Fasoli 餐廳。重新特許經營 Fasoli's 加上剝離 Twin Hospitality Group（包括所有 Twin Peaks 和 Smokey Bones 門市），將顯著減少我們公司擁有的佔地面積，並每年額外節省約 250 萬美元的管理費用。如果我們抓住這次重新特許經營的機會，我們將只保留大約 33 個熱狗連鎖店，而我們的總連鎖店總數為 2,300 個，如果不包括 Twin Peaks 和 Smokey Bones，則為 2,125 個。這些策略性舉措將使我們恢復幾乎100％特許經營的商業模式。

Now turning to our growth by acquisition strategy during 2025, we are committed to unlocking value and reducing our leverage as the cost of capital remains high. We continue to look at highly strategic targets that could help us achieve those goals. Our Georgia production facility represents one of our key strategic advantages, generating impressive financial performance with USD8.8 million in first quarter sales and USD3.1 million in adjusted EBITDA, resulting in an attractive 35% margin. This 2nd quarter, we expect to execute on a major strategic initiative for a cookie dough manufacturing business, namely a third-party contract with a national restaurant entertainment chain. We look forward to building on this momentum and increasing our utilization beyond the current level of 40% to 45% of production capacity.

現在轉向我們 2025 年透過收購策略實現的成長，由於資本成本仍然很高，我們致力於釋放價值並降低槓桿率。我們將繼續尋找能夠幫助我們實現這些目標的具有高度策略性的目標。我們位於喬治亞州的生產設施代表了我們的主要策略優勢之一，其財務表現令人印象深刻，第一季銷售額達 880 萬美元，調整後 EBITDA 達 310 萬美元，利潤率高達 35%。今年第二季度，我們預計將執行一項針對餅乾麵團製造業務的重大戰略舉措，即與一家全國性餐飲娛樂連鎖店簽訂第三方合約。我們期待在此基礎上進一步提高產能利用率，使其超過目前 40% 至 45% 的水平。

Our near-term target is reaching 60% to 70% utilization, which would substantially enhance the facility's market value and operational efficiency. While this asset could eventually help decrease debt through strategic divestiture, our immediate focus is capitalizing on the growth runway ahead. The manufacturing operation remains in its early growth stage with significant untapped potential to drive shareholder value as we execute upon our strategy.

我們的近期目標是達到 60% 至 70% 的利用率，這將大幅提高設施的市場價值和營運效率。雖然這項資產最終可以透過策略性剝離來幫助減少債務，但我們目前的重點是利用未來的成長空間。隨著我們實施策略，製造業務仍處於早期成長階段，具有巨大的未開發潛力來推動股東價值。

Before concluding, I'd like to share an update on the Fat Brand's Foundation. To date, the foundation has awarded 10 grants in 2025 and has received a record amount of grant requests for both the months of March and April. This speaks to the commitment of the board in driving awareness and visibility of the foundation as it looks to grow its impact across that brand's communities. The foundation's dedication to giving back to our communities is also amplified by our brand ambassador program, which was launched last year. To date, over 35% of our 800 franchisees are actively involved in the program.

在結束之前，我想分享一下 Fat Brand 基金會的最新動態。迄今為止，該基金會已在 2025 年頒發了 10 項資助，並在 3 月和 4 月收到了創紀錄數量的資助申請。這表明董事會致力於提高基金會的知名度和可見度，並希望擴大其在該品牌社群中的影響力。我們去年推出的品牌大使計畫也進一步彰顯了基金會回饋社區的決心。迄今為止，我們 800 家特許經營商中已有超過 35% 積極參與該計劃。

In conclusion, Fat Brand is laser focused on two fronts debt reduction and leveraging our robust pipeline of growth opportunities. The energy across our team signals strong momentum. We remain dedicated to maximizing shareholder value and we will continue updating you on our progress. With that, I'd like to hand it over to Ken to discuss our financial highlights from the first quarter of 2025.

總之，Fat Brand 專注於兩個方面：減少債務並利用我們強大的成長機會。我們團隊的活力體現出強勁的勢頭。我們始終致力於最大化股東價值，並將繼續向您通報我們的進展。接下來，我想讓肯恩來討論我們 2025 年第一季的財務亮點。

Thanks, Andy. Moving on to our first quarter results, total revenues were USD142 million a 6.5% decrease from USD152 million in last year's quarter. This was driven by lower same store sales and particularly the closure of Smokey Bones locations for conversion into Twin Peaks lodges, partially offset by revenue generated by our new Twin Peaks lodges.

謝謝，安迪。我們第一季的業績顯示，總營收為 1.42 億美元，較去年同期的 1.52 億美元下降 6.5%。這是由於同店銷售額下降，特別是 Smokey Bones 分店關閉並改建為 Twin Peaks 旅館所致，但新的 Twin Peaks 旅館產生的收入部分抵消了這一影響。

Turning to costs and expenses, general and administrative expense increased to USD33 million in the quarter, from USD30 million in the EUR quarter, primarily due to increased professional fees related to pending mitigation. Cost of restaurant and factory revenues decreased to USD96.1 million in the quarter compared to USD99.1 million in the year ago quarter, primarily due to lower same store sales, partially offset by wage and food cost inflation. Advertising expense varies in relation to advertising revenues and decreased to USD11.1 million in the quarter from USD12.6 million in the year ago period. Additionally, we slowed down advertising at Smokey Bones as we continue our strategy of converting locations into Twin Peaks lodges. Total other expense net, which consisted primarily of interest expense, was USD36 million in the quarter compared to USD33.4 million in last year's quarter.

談到成本和費用，本季的一般和行政費用從歐元季度的 3,000 萬美元增加到 3,300 萬美元，主要原因是與待決緩解措施相關的專業費用增加。本季餐廳和工廠收入成本從去年同期的 9,910 萬美元下降至 9,610 萬美元，主要原因是同店銷售額下降，但工資和食品成本上漲部分抵消了這一影響。廣告費用隨廣告收入而變化，從去年同期的 1,260 萬美元下降至本季的 1,110 萬美元。此外，我們放慢了在 Smokey Bones 的廣告投放速度，繼續執行將地點改造成 Twin Peaks 旅館的策略。本季其他支出淨總額（主要包括利息支出）為 3,600 萬美元，去年同期為 3,340 萬美元。

Net loss attributable to FAT Brands was USD46 million or USD2.73 per diluted share compared to a net loss of USD38.3 million or USD2.37 per share in the prior year quarter. And on an as adjusted basis, our net loss attributable to FAT Brands was USD38.7 million or USD2.32 per diluted share compared to USD32.9 million or USD2.05 per diluted share in the prior year quarter. And lastly, adjusted EBITA for the quarter was USD11.1 million compared to USD18.2 million in the year ago quarter.

FAT Brands 淨虧損為 4,600 萬美元，即每股虧損 2.73 美元，而去年同期淨虧損為 3,830 萬美元，即每股虧損 2.37 美元。經過調整後，我們歸屬於 FAT Brands 的淨虧損為 3,870 萬美元或每股攤薄虧損 2.32 美元，而去年同期為 3,290 萬美元或每股攤薄虧損 2.05 美元。最後，本季調整後的 EBITA 為 1,110 萬美元，而去年同期為 1,820 萬美元。

And with that operator, please open the line for questions.

請與接線員聯繫，以便我們解答疑問。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

And the first question comes from the line of Alton Stump with Loop Capital Markets. Please proceed.

第一個問題來自 Loop Capital Markets 的 Alton Stump。請繼續。

Thank you, good afternoon. Thanks for taking my questions. As always, you can, I just wanted to ask about the cooking facility. I think you mentioned. Andy, that you expect in the near term to go from, 40% to 45%, that you've been as far actualization here over the last couple of quarters. So, I think 60% to 70%, which is an awfully nice move, from a dollar impact, what kind of, ballpark impact could that have from a, efficiency standpoint if you do get to that 60% to 70% utilization range?

謝謝，下午好。感謝您回答我的問題。像往常一樣，你可以，我只是想詢問有關烹飪設施的情況。我想你有提到過。安迪，您預計短期內該比例將從 40% 上升至 45%，而您已經在過去幾個季度實現了這一目標。因此，我認為 60% 到 70% 是一個非常好的舉措，從美元影響來看，如果利用率確實達到 60% 到 70% 的範圍，從效率的角度來看，這會產生什麼樣的大致影響？

I mean, our goal is to increase the you that facility from about USD15 million a year to USD25 million a year and getting that these contracts in place, if there's multiple initiatives going on, that's just one of them that won't do it by itself, the one that we're going to announce shortly, but, there's a lot of momentum behind. That initial program and I think it'll cause the other two or three to drop in place right away.

我的意思是，我們的目標是將該設施從每年約 1500 萬美元增加到每年 2500 萬美元，並簽訂這些合同，如果有多個舉措正在進行，那隻是其中之一，不會自行完成，我們將很快宣布這一點，但是，背後有很多動力。我認為，最初的那個計劃將立即促使另外兩個或三個計劃順利實施。

Great thank you

非常感謝

If we get the sure if we get the facility up to that level, then you know it's probably an asset that could generate USD300 million plus in proceeds for debt reduction, at some point.

如果我們確信我們的融資額度能達到這個水平，那麼你知道，在某個時候，它可能是一種可以產生 3 億美元以上收益用於減債的資產。

Got it. Got it thanks for that (inaudible)And then, I just wanted to ask, I mean, you guys obviously have, almost 20 different concepts, it's clearly a tough quarter for the industry wide, as to whether it was, certainly not helpful and, there's, of course a lot of macro news. What's your kind of general sense across your brands from a consumer standpoint, you know how much value focus do you think that in general that you're going to have to do with the concepts over the next couple quarters if the current consumer environment, does not improve.

知道了。明白了，謝謝（聽不清楚）然後，我只想問一下，我的意思是，你們顯然有近 20 種不同的概念，對於整個行業來說，這顯然是一個艱難的季度，至於它是否肯定沒有幫助，當然還有很多宏觀新聞。從消費者的角度來看，您對自己的品牌的整體看法是什麼？如果當前的消費環境沒有改善，您認為在接下來的幾個季度裡，您需要在多大程度上關注這些概念？

I mean, the consumer's apprehensive, the consumer confidence level is mixed, its definitely event driven. So, we're seeing bubbles of exuberance, and then we're seeing people, pare back in terms of the traffic and that's, within a brand, not just across brand. So I think this value, as we talk about value and you've seen QSR brands in the industry sort of abandon their value play, value for us is really different. It's what I said earlier. It's creating, great food and a great experience to justify the price because consumers are, they've had it with pricing yet. And they still want to go out and go into restaurants and, take advantage of the of the great experience. You just have to give them a great experience to justify what they're paying for it. And so I think that's going to continue for the rest of the year. I know there's a lot of brands that are betting on the second half of the year that things are going to all of a sudden be amazing and we'll have to see. We're trying different initiatives to drive traffic, and we're going to continue to do that and take advantage of, the fact that we have great products to offer, so people want to come to our brands, we just have to give them value.

我的意思是，消費者的擔憂、消費者信心程度參差不齊，這肯定是由事件驅動的。因此，我們看到了繁榮的泡沫，然後我們看到人們在流量方面減少，而且這是在品牌內部，而不僅僅是跨品牌。因此我認為，當我們談論價值時，您已經看到業內的 QSR 品牌放棄了其價值發揮，對我們來說，價值確實不同。這是我之前說的。它創造了美味的食物和絕佳的體驗來證明價格是合理的，因為消費者已經對定價感到滿意了。他們仍然想出去，去餐館，享受美好的體驗。您只需為他們提供良好的體驗，就能證明他們為此付出的代價是值得的。所以我認為這種情況將在今年剩餘時間持續下去。我知道有很多品牌都押註今年下半年的情況會突然變得令人驚奇，我們拭目以待。我們正在嘗試不同的措施來吸引流量，我們將繼續這樣做，並利用我們擁有優質產品的優勢，讓人們願意購買我們的品牌，我們只需要為他們提供價值。

Got it. Great. Thank you. And then, it's just the last thing and I'll hop back into here, Andy, but just, as far as like just the delay with the first tranche that you are, committed to raise, obviously in the aftermath of, the Twin Peaks, I feel, I guess, how much long you think that would take, and is there any deadlines that you sort of have to stick to when it comes to raising that money over the course of the year.

知道了。偉大的。謝謝。然後，這只是最後一件事，安迪，我會回到這裡，但就您承諾籌集的第一批資金的延遲而言，顯然是在《雙峰》之後，我猜，您認為這需要多長時間，以及在一年內籌集這筆資金時，是否有任何您必須遵守的最後期限。

Yeah, thanks. There's no gun to our head. The reality is that equity markets, for restaurant stocks are and a lot of different industries, those shades are drawn, the windows closed, and so we've just got to wait for it to open up. I think if we had been able to get the spinoff done in the fourth quarter of last year, we would have been able to sort of ride the Trump euphoria wave in very early in Q1 and By the time, we went out and had some node roadshow meetings and confidential discussions, testing the waters types of meetings, everyone loves the concept. Everyone loves what we're doing. People are concerned about the leverage, of course, the majority of the proceeds pay down the leverage, so they're happy with that. But at the end of the day they just point to the market and the volatility and say I got to wait. I'm sitting on my hands until volatility calms down, and I think. That you know we're fortunate that there's nothing that really happens within the debt indenture that's you know of any real consequence and so we're just going to write it out and I think we'll I mean our bondholders have been extremely supportive and as I indicated in our call earlier. We are talking about refinancing the remaining silos from the securitization just so that we're well ahead of the July 26th anticipated repayment date and so you know we have we have over a year but hopefully we'll get that done, sometime in Q2 or Q3, more likely and that probably includes some modifications to the Twin Peaks deal as well just because the equity raise is taking longer.

是的，謝謝。沒有人用槍指著我們的頭。現實情況是，對於餐飲股和許多其他行業來說，股票市場都是窗簾拉上的，窗戶關閉的，所以我們只能等待它打開。我認為，如果我們能夠在去年第四季完成分拆，我們就能在第一季度初乘上川普的狂熱浪潮，到那時，我們出去進行了一些節點路演會議和秘密討論，試水類型的會議，每個人都喜歡這個概念。每個人都喜歡我們所做的事情。人們擔心槓桿，當然，大部分收益都會償還槓桿，所以他們對此感到滿意。但到最後他們只是指出市場和波動性並說我必須等待。我會袖手旁觀，直到波動平息下來，然後再思考。您知道，我們很幸運，債務契約中沒有發生任何真正造成嚴重後果的事情，因此我們只是將其寫出來，我想我們的債券持有人一直非常支持，正如我之前在電話會議中所指出的那樣。我們正在討論對證券化中剩餘的資金進行再融資，以便我們能夠提前於 7 月 26 日的預期還款日期，所以你知道我們還有一年多的時間，但希望我們能夠在第二季度或第三季度的某個時候完成這項工作，更有可能的是，這可能包括對 Twin Peaks 交易的一些修改，因為股權融資更長的時間。

Okay, great. No, that is very good to hear and also very helpful. Thanks so much. I'll hop back in the queue.

好的，太好了。不，聽到這個消息非常好，而且也很有幫助。非常感謝。我會重新回到隊列中。

Thank you.

謝謝。

The next question comes from the line of Joe Gomes with Noble Capital Markets. Please proceed.

下一個問題來自 Noble Capital Markets 的 Joe Gomes。請繼續。

Good afternoon thanks for taking my questions.

下午好，感謝您回答我的問題。

I do.

我願意。

So just want to make sure I understand this all correctly and so if I look at kind of, the three main revenue lines, royalties were pretty flat year-over-year. The co-owned restaurant sales were down about 6.2%, and I'm assuming that's the Smoky Bones that was closed and then, some of the same store sales declined. And then the factory revenue was off about 7%, not a big number, but just still off about 7%. I just want to make sure that, if this is, if there was anything else besides just the same store sales decline and the absence of the Smoky Bones that is driving those numbers.

所以只是想確保我理解得正確，所以如果我看一下，三個主要收入線，版稅與去年同期相比基本上持平。共同擁有的餐廳銷售額下降了約 6.2%，我猜是因為 Smoky Bones 關門了，然後一些同店銷售額也下降了。然後工廠收入下降了約 7%，雖然不是很大，但仍然下降了約 7%。我只是想確認一下，如果是這樣的話，除了同一家店的銷售額下降和 Smoky Bones 的缺席之外，是否還有其他因素導致了這些數字的下降。

You are right that from a revenue and same sort of sales, you have, royalties that are consistent, you have the total, system sales off because of the Smoky Bones. And that's really also on the, at the operating margin level as well, where there's just less restaurant level margin than Smoky Bones, and you've got some stores temporarily closed while they're being converted. So, both of those things. Now when we talk about the overall Smokey Bones portfolio, we still think about half the locations. We'll get converted into Twin Peaks as quickly as we can and within those 30 locations because there's 60 in total, about 10 of them will be corporate. We've converted 2 already we have another one under construction now and a couple more to do over the next 12 months. And then there's about 10 that are clearly franchise markets, and then there's 10 that are in between. They'll either be a franchise or they'll be corporate, we'll do one or the other. And then there's a bunch that don't qualify as a conversion either because there's the Twin Peaks, too close already, or there's some landlord restriction where it doesn't make it feasible. So in those cases that remaining 30, about 10 of those restaurants will close, their leases are running out. They're old and there's nothing to do with them, and then there's about 20 that will stay Smoky Bones in. And continue on. And so a couple of those we've closed because they can't, they're not going to be converted and then we've got the ones that are closed that are in the middle of the conversion process. That's why the total sales decline that looks a little bit more severe. It's just, we took all of Smokey Bones and recorded all of those sales for the last 18 months, but now we're closing some of the ones that are that are destined to be closed anyway, which is again about 9 of them, I think.

您說得對，從收入和同類銷售來看，您有一致的版稅，由於 Smoky Bones，您的總系統銷售額下降了。這其實也是在營業利潤率水準上，餐廳層面的利潤率比 Smoky Bones 低，而且有些門市在轉型期間會暫時關閉。所以，這兩件事都是如此。現在，當我們談論整個 Smokey Bones 產品組合時，我們仍然會考慮一半的門市。我們將盡快改建成 Twin Peaks，在這 30 個地點中（總共 60 個），大約有 10 個將是企業地點。我們已經改造了 2 個，現在還有 1 個正在建設中，未來 12 個月內還有 2 個要建造。其中大約有 10 個明顯是特許經營市場，還有 10 個介於兩者之間。他們要么是特許經營，要么是企業，我們會選擇其中一種。還有一些不符合轉換條件的地方，不是因為距離雙峰太近，就是因為房東有限制，無法進行轉換。因此，在剩下的 30 家餐廳中，大約有 10 家將會關閉，因為它們的租約即將到期。它們已經老了，沒什麼可做的了，還有大約 20 個會留在 Smoky Bones。並繼續前進。因此，我們關閉了其中幾個，因為它們無法轉換，它們不會被轉換，然後我們關閉了那些正處於轉換過程中的。這就是為什麼總銷售額下降看起來更加嚴重的原因。只是，我們收購了所有 Smokey Bones 並記錄了過去 18 個月的所有銷售情況，但現在我們正在關閉一些注定要關閉的門店，我想大約有 9 家。

Okay, great. Thanks for that. And I don't know if you can, kind of give us a ballpark here, if you were to re-franchise all the Fazoli, what kind of values that bring into the parent FAT Brands.

好的，太好了。謝謝。我不知道您是否可以給我們一個大概的估計，如果您重新特許經營所有 Fazoli，這會給母公司 FAT Brands 帶來什麼樣的價值。

Well, I think so, it, the pro the proceeds from any refranchising will go to pay down debt. The dollar value that we, achieved for that, is probably somewhere in a 4 to 6, times multiple, range for those stores and you're going to see something hopefully in the in the USD20 million to USD25 million range. And we'll see how that goes in this environment. But the other point to that is we, we'll continue to get a royalty instead of profits from the stores and it'll save USD2.5 million to USD3.5 million of overhead.

嗯，我認為是這樣，任何再特許經營的收益都將用於償還債務。我們為此實現的美元價值可能在這些商店的 4 到 6 倍範圍內，希望你能看到在 2000 萬美元到 2500 萬美元範圍內的收益。我們將觀察在這種環境下情況會如何發展。但另一點是，我們將繼續從商店獲得特許權使用費而不是利潤，這將節省 250 萬至 350 萬美元的管理費用。

Okay. And then Pardon me, one of the things that, we had hoped to see here was to see the litigation expenses moderate. It looks like they kind of really went up in the quarter, anything that you can provide us the insight as to what was driving the increase.

好的。然後請原諒，我們希望看到的事情之一是訴訟費用適中。看起來它們在本季度確實有所上漲，您能否向我們提供有關推動上漲的原因的任何見解。

I think that we're going to see the end to a lot of litigation expense here in Q2, all of it, coming to an end, and look forward to talking more about that when we can.

我認為我們將在第二季度看到大量訴訟費用的結束，所有訴訟費用都將結束，我們期待在可能的情況下就此進行更多討論。

Okay, that would be great, and then just last for me, I don't know if you provide us any kind of, I know the same store sales were down in the first quarter, but so far here in the second quarter I don't know if you could talk about. What traffic patterns are looking like or average checks are looking like across the the franchises.

好的，那就太好了，最後，我不知道您是否為我們提供任何類型的信息，我知道第一季度同店銷售額下降，但到目前為止，第二季度的情況我不知道您是否可以談談。各特許經營店的客流量模式是什麼樣的，平均檢查結果又是什麼樣的。

Yeah, I mean, you're seeing, I mean you are seeing differences by segment in terms of like burgers versus wings versus snacks we're seeing very modest decline in in sales and traffic for the cookies and ice cream and pretzels and stuff like that. You're seeing it, more standard, industry level declines for burgers. And some of the wings brands, but you're also seeing, pizza do pretty well. And so we're pleased to see how well pizza's held up and continuing. I mean it's for most of the time either flat or slightly positive or slightly negative, but it's done really well as well as the snacks.

是的，我的意思是，你可以看到，漢堡、雞翅和零食等細分市場的差異，我們看到餅乾、冰淇淋、椒鹽脆餅等商品的銷量和客流量都有小幅下降。您會發現，漢堡的標準越來越高，業界水準越來越低。還有一些雞翅品牌，但你也會看到，披薩賣得很好。因此，我們很高興看到披薩的銷量如此好並且持續成長。我的意思是，大多數時候它要么持平，要么略微上漲，要么略微下跌，但它和零食一樣做得很好。

Okay great thanks I'll get back to you.

好的，非常感謝，我會回覆您。

Thank you, Joe.

謝謝你，喬。

The next question comes from the line of Roger Lipton with Lipton Financial Services. Please proceed.

下一個問題來自 Lipton Financial Services 的 Roger Lipton。請繼續。

Yes. Hi Andy. Hi Ken. Thanks for taking my question. Most of the items I wanted to. (inaudible) all the, my other phone rang, we have been referred to already. But, I wanted to ask you, can you give us an estimate of the year-to-year Smoky Bones, negative impact in the quarter trying to reconcile the decline in the year-to-year adjusted EBITDA. My suspicion is that Smokey Bones did more poorly this year than last. Is there any estimate you can provide?

是的。你好，安迪。你好，肯。感謝您回答我的問題。我想要的大多數物品。 （聽不清楚）所有的，我的另一通電話響了，我們已經被轉介了。但是，我想問您，您能否給我們一個關於 Smoky Bones 同比季度負面影響的估計值，以試圖調和同比調整後 EBITDA 的下降。我懷疑 Smokey Bones 今年的表現比去年更差。您能提供任何估價嗎？

Yeah, I mean, it's a, it's a couple million dollars a quarter, it's a lot.

是的，我的意思是，每個季度有幾百萬美元，很多。

Right, okay.

好的，好的。

I mean, you have depreciation, you have actual operating, decline, so you have both those things, to run through whichever you're looking at and so the faster we can convert the stores we're going to convert the better, and you know we're very focused on that.

我的意思是，你有折舊，有實際運營，有下降，所以你有這兩件事，無論你看什麼，都要經歷，所以我們越快轉換商店，我們轉換的速度就越快，你知道我們非常關注這一點。

Right, yeah, no doubt.

是的，是的，毫無疑問。

When you have it just in the overall scheme of things when you have rates remaining as high as they are and you have construction costs up as much as they are and then you have tariffs that you're importing equipment that might be affected by tariffs and what have you just end up having development slow down a little bit. It's not going away, but it slows down a little bit and so. You can your franchisees are your partners. You want them to build new stores at an efficient price and program, but you know they're apprehensive, so they're, drag their feet a little bit to make sure they could get a better price on this or a better price on that, or, and then some regions you've got, construction where it's hard to find the right contractor that's available because he's busy on something else and you know just all that stuff's going on I think I think it's making.

從整體來看，當利率維持在高位，建築成本也隨之上漲，然後還有關稅，進口設備可能會受到關稅的影響，最終導致發展速度略有放緩。它不會消失，但速度會減慢一點。你可以將你的加盟商視為你的合作夥伴。你希望他們以高效的價格和計劃建造新店，但你知道他們心存疑慮，所以他們會拖延，以確保能在這個或那個方面獲得更優惠的價格，或者，在某些地區，很難找到合適的建築承包商，因為他正忙於其他事情，你知道，所有這些事情都在發生，我認為這是可行的。

A new store development just go a little bit slower than we would like, but it's understandable and it's not, it's not that it's not going to happen, it's just taking a little longer.

新店開發的速度比我們希望的要慢一點，但這是可以理解的，並不是說它不會發生，只是需要更長的時間。

Right, understood. And do you have any idea how long it's going to take to find a new full-time CEO to take the place of Joe Hummel? How does that, how is that going?

對的，明白了。您是否知道需要多長時間才能找到一位新的全職執行長來接替喬·亨默爾 (Joe Hummel) 的位置？怎麼樣，怎麼樣？

Yeah, the executive search is going very well. We have a number of excellent candidates, and I don't think it'll take very long.

是的，高階主管搜尋工作進展順利。我們有許多優秀的候選人，我認為不會花很長時間。

Okay, and lastly.

好的，最後。

Certainly, within this quarter. Certainly within this quarter.

當然，在本季內。肯定會在本季內。

Okay. Well, that'd be productive. In the supplemental material, you talk about one of the one you, your show is that one of your priorities, USD10 million of additional EBITDA, adjusted EBITDAfrom new stores, and USD5 million from the factory. What kind of time frame are you thinking about in terms of that incremental USD15 million of adjusted EBITDA, a year or two years? I mean, you don't specify the timetable.

好的。嗯，那將會很有成效。在補充資料中，您談到了其中一項，您的表明是您的優先事項之一，1000 萬美元的額外 EBITDA，來自新店的調整後 EBITDA，以及來自工廠的 500 萬美元。就調整後 EBITDA 增量 1500 萬美元而言，您考慮的時間範圍是怎樣的，一年還是兩年？我的意思是，你沒有指定時間表。

Well, yeah, there are, there are, I think over the next couple of years is more than reasonable for both of those things. Yeah, we have, because we have so many new stores opening and we have this incremental growth at the factory, over the next 24 months for sure that'll show up.

嗯，是的，有，有，我認為在接下來的幾年裡，這兩件事都是非常合理的。是的，因為我們開設了許多新店，而且工廠也在不斷增長，所以在接下來的 24 個月內肯定會顯現出來。

Okay. All right, that's, helpful. Thanks very much.

好的。好的，這很有幫助。非常感謝。

Thank you.

謝謝。

Thank you. This concludes the question-and-answer session, and I would like to turn the call back over to Andy Wiederhorn for closing remarks.

謝謝。問答環節到此結束，我想將電話轉回給 Andy Wiederhorn 做結束語。

Great, thank you, everyone. I love to direct your attention to the Twin Peaks earnings call, that is, going on as we speak just started a couple minutes ago and that contact information is in the earnings release for Twin Peaks. Operator, this concludes today's call.

太好了，謝謝大家。我想請您關注 Twin Peaks 的收益電話會議，也就是說，就在我們談話幾分鐘前剛開始的電話會議，聯絡資訊在 Twin Peaks 的收益報告中。接線員，今天的通話到此結束。

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路。感謝您的參與。