FAT Brands Inc (FATAV) 2023 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and thank you for standing. Welcome to the FAT Brands Inc. third-quarter 2023 earnings conference call. (Operator Instructions) Please note that this conference is being recorded today, October 26, 2023. On the call from FAT Brands are Chairman of the Board, Andy Wiederhorn, and Co-Chief Executive Officer and Chief Financial Officer, Ken Kuick.

下午好，女士們先生們，感謝你們站起來。歡迎參加 FAT Brands Inc. 2023 年第三季財報電話會議。 （操作員說明）請注意，本次會議將於今天（2023 年 10 月 26 日） 進行錄製。FAT Brands 董事會主席 Andy Wiederhorn 以及聯席首席執行官兼首席財務官 Ken Kuick 接聽了電話。

This afternoon, the company made its third-quarter 2023 financial results publicly available, please refer to the earnings release and earnings supplement, both of which are available in the Investors section of the company's website at www.fatbrands.com. Each contain additional details about the third quarter, which closed on September 24, 2023.

今天下午，該公司公開發布了2023年第三季財務業績，請參閱收益報告和收益補充資料，兩者均可在公司網站www.fatbrands.com的投資者部分取得。每份報告均包含有關截至 2023 年 9 月 24 日結束的第三季的更多詳細資訊。

But before we 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. For 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.

但在我們開始之前，我必須提醒大家，今天討論的一部分將包括前瞻性陳述。這些前瞻性陳述並不是對未來績效的保證，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。該公司不承諾日後更新這些前瞻性陳述。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向 SEC 提交的文件。

During today's call, the company will also discuss non-GAAP financial measures, which I believe can be useful in evaluating its performance. The presentation of this additional information should not be considered an isolation nor as a substitute for results prepared in accordance with GAAP; reconciliations to comparable GAAP measures are available in today's earnings release.

在今天的電話會議上，該公司還將討論非公認會計準則財務指標，我相信這對於評估其表現很有用。這些附加資訊的呈現不應被視為孤立的，也不應被視為根據 GAAP 準備的結果的替代品；今天的收益報告中提供了與可比較公認會計準則衡量標準的對帳。

I would now like to turn the call over to Andy Wiederhorn, Chairman of the Board. Please go ahead.

我現在想將電話轉給董事會主席安迪·維德霍恩 (Andy Wiederhorn)。請繼續。

Thank you operator. We appreciate everyone joining us this afternoon. First and foremost, I would like to thank our teams, franchisees, and their employees for their unwavering commitment and hard work and have resulted in the continued growth of FAT Brands.

謝謝運營商。我們感謝今天下午加入我們的大家。首先，我要感謝我們的團隊、加盟商及其員工堅定不移的承諾和辛勤工作，使 FAT 品牌得以持續發展。

Total revenue grew 6% to $109.4 million in the third quarter of 2023 compared to $103.2 million in the prior year third quarter. The increase was driven by a 4.8% increase in royalties, a 2% increase in company-owned restaurant revenues, a 228.5% increase in franchise fees, and an 18.9% increase in revenues from our manufacturing facility. System-wide sales in the third quarter grew to $564.6 million, a 0.8% increase when compared to the prior year quarter. On profitability, third quarter adjusted EBITDA was $21.9 million compared to $24.6 million in last year's third quarter. And just to point out that in last year's third quarter, there were $7.2 million of tax credits; without those tax credits, it would be a 26% increase on a quarter-over-quarter year-over-year basis.

2023 年第三季的總營收成長 6%，達到 1.094 億美元，而去年第三季的總營收為 1.032 億美元。這一成長的推動因素包括特許權使用費增加 4.8%、公司自有餐廳收入增加 2%、特許經營費增加 228.5% 以及製造工廠收入增加 18.9%。第三季全系統銷售額成長至 5.646 億美元，比去年同期成長 0.8%。在獲利能力方面，第三季調整後 EBITDA 為 2,190 萬美元，而去年第三季為 2,460 萬美元。需要指出的是，去年第三季度，稅收抵免額為 720 萬美元；如果沒有這些稅收抵免，季度將比去年同期成長 26%。

Throughout Q3, we were extremely busy executing on our three strategic pillars: one, growth by acquisition; two, organic growth; and three, productivity growth for our Georgia-based manufacturing facility. I'll begin with our first strategic pillar of growth through acquisitions. Over the last two years, our growth strategy has been very focused on our organic development as we digested eight new restaurant brands that we acquired throughout 2020 and 2021. We continue to be selective and opportunistic in our acquisition strategy.

在整個第三季度，我們非常忙於執行我們的三大策略支柱：一是透過收購來實現成長；二、有機成長；第三，我們位於喬治亞州的製造工廠的生產力成長。我將從透過收購實現成長的第一個策略支柱開始。在過去的兩年裡，我們的成長策略非常注重有機發展，我們消化了 2020 年和 2021 年收購的八個新餐廳品牌。我們在收購策略中繼續保持選擇性和機會主義。

Under this strategy, we recently purchased Smokey Bones Bar and Fire Grill, a full-service restaurant chain for the sports bar atmosphere from an affiliate of Sun Capital Partners for $30 million, this was funded from our existing securitization facilities. In 2020, Johnny Rockets was similarly acquired from Sun Capital Partners. Smokey Bones is known for its great barbecue, award-winning ribs, and perfectly seared steaks. Currently, Smokey Bones operate 61 company-owned locations across 16 states. We expect Smokey Bones to increase annual adjusted EBITDA by approximately $10 million.

根據這項策略，我們最近以3000 萬美元的價格從Sun Capital Partners 的一家附屬公司手中收購了Smokey Bones Bar and Fire Grill，這是一家提供運動酒吧氛圍的全方位服務連鎖餐廳，這筆資金來自我們現有的證券化設施。 2020年，Johnny Rockets同樣被Sun Capital Partners收購。 Smokey Bones 以其美味的燒烤、屢獲殊榮的肋骨和烤得恰到好處的牛排而聞名。目前，Smokey Bones 在 16 個州經營 61 家公司自營店。我們預計 Smokey Bones 的年度調整後 EBITDA 將增加約 1000 萬美元。

The acquisition marks our expansion into the barbecue segment and bolsters our presence in polished casual dining, which until now has been represented exclusively by our Twin Peaks chain. Smokey Bones currently has the second highest AUVs in our portfolio following Twin Peaks of greater than approximately $3 million. Adding a strong player in the barbecue space like Smokey Bones provides our sales team with more development options to offer franchise partners so that they can further form new unit growth. We plan to work hard and hand-in-hand with the Smokey Bones leadership team to grow the concept through our franchising model. And through our refranchising strategy, we have plans to build Smokey Bones back to the location count it once had, approximately 120 units.

此次收購標誌著我們向燒烤領域的擴張，並增強了我們在精緻休閒餐飲領域的地位，迄今為止，該領域的獨家代理商是我們的 Twin Peaks 連鎖店。 Smokey Bones 目前在我們的投資組合中擁有第二高的 AUV，僅次於《Twin Peaks》，價值超過約 300 萬美元。在燒烤領域增加像Smokey Bones這樣的強大玩家，為我們的銷售團隊提供了更多的發展選擇，為特許經營合作夥伴提供更多選擇，使他們能夠進一步形成新的單位增長。我們計劃與 Smokey Bones 領導團隊攜手努力，透過我們的特許經營模式發展這一理念。透過我們的再特許經營策略，我們計劃將 Smokey Bones 的店面數量恢復到原來的水平，即大約 120 個單位。

Approximately half of the operators in the FAT Brands system are multiunit franchisees, operating anywhere from two to 75 units, and they are hungry to grow their portfolio with brands that have strong AUVs. In fact, a number of franchisees have already expressed interest in acquiring existing Smokey Bones corporate stores as franchises so that they can grow their portfolio of restaurants. Smokey Bones has many prime real estate locations that could provide conversion opportunities for Twin Peaks and our franchise partners. Over time, we plan to selectively convert locations where appropriate, which will enhance the growth of the Twin Peaks system.

FAT 品牌系統中大約一半的營運商是多單位特許經營商，經營著 2 到 75 家單位，他們渴望透過擁有強大 AUV 的品牌來擴大其產品組合。事實上，許多特許經營商已經表示有興趣收購現有的 Smokey Bones 公司商店作為特許經營權，以便擴大其餐廳組合。 Smokey Bones 擁有許多黃金地段的房地產地點，可以為 Twin Peaks 和我們的特許經營合作夥伴提供轉換機會。隨著時間的推移，我們計劃在適當的情況下選擇性地轉換地點，這將促進雙峰系統的發展。

Inclusive of Smokey Bones, the FAT portfolio now consists of 18 distinctive brands with approximately 800 different franchisees who operate more than approximately 2,125 franchise restaurants in addition to our approximately 180 company-owned stores. Presently, we have a total of 2,300 units operating under construction, ranking us as approximately the 25th largest restaurant company in the US by unit count.

包括 Smokey Bones 在內，FAT 產品組合現在由 18 個獨特品牌組成，擁有約 800 家不同的特許經營商，除了我們約 180 家公司自營店外，他們還經營超過約 2,125 家特許經營餐廳。目前，我們共有 2,300 家在建營業單位，以單位數量計算，我們約為美國第 25 大餐飲公司。

While we have more recently focused on the polished casual segment, we are also looking at other categories to round out our portfolio, such as salad sandwich or coffee brand. As we continue to assess potential targets for acquisition, our focus remains on identifying strategic and EBITDA-accretive opportunities with brands that have demonstrated long-term sustainability and robust profitability. They also must be scalable and synergistic with our existing platform, including leveraging our existing manufacturing capacity when possible.

雖然我們最近專注於精緻休閒細分市場，但我們也在尋找其他類別來完善我們的產品組合，例如沙拉三明治或咖啡品牌。當我們繼續評估潛在收購目標時，我們的重點仍然是尋找具有長期可持續性和強勁盈利能力的品牌的策略和 EBITDA 增值機會。它們還必須具有可擴展性並與我們現有的平台發揮協同作用，包括盡可能利用我們現有的製造能力。

On that note, another strategic priority for us is the growth of our Georgia-based manufacturing facility, which provides pretzel mix and cookie dough for several brands. We believe our factory business today is in its early stage of growth, operating at only about 40% to 45% of its capacity, still this is up from 33% two years ago. We also have the ability to significantly expand the capacity of the plant by tapping into our 3.5 acres of excess real estate and the ability to invest in additional equipment to also enhance capacity.

在這一點上，我們的另一個戰略重點是我們位於喬治亞州的製造工廠的發展，該工廠為多個品牌提供椒鹽捲餅混合物和餅乾麵團。我們相信，今天我們的工廠業務正處於成長的早期階段，其產能利用率僅為 40% 至 45%，但仍高於兩年前的 33%。我們還有能力透過利用 3.5 英畝的多餘房地產來大幅擴大工廠的產能，並有能力投資額外的設備來提高產能。

During the third quarter, our manufacturing facility generated $9.3 million in sales, an 18.9% increase over last year's third quarter. To help increase productivity at our manufacturing facility, earlier this year, we strategically introduced cookie offerings throughout our burger portfolio -- Fatburger, Johnny Rockets, and Elevation Burger. We see these additions as a way to further build and enhance our dessert programs. We continue to explore opportunities to add cookie offerings at our remaining brands, including our casual dining concepts and facilities.

第三季度，我們的製造工廠實現了 930 萬美元的銷售額，比去年第三季成長 18.9%。為了幫助提高我們製造工廠的生產力，今年早些時候，我們策略性地在我們的漢堡產品組合中引入了餅乾產品——Fatburger、Johnny Rockets 和 Elevation Burger。我們將這些添加視為進一步構建和增強我們的甜點計劃的一種方式。我們繼續探索在我們的剩餘品牌中添加餅乾產品的機會，包括我們的休閒餐飲概念和設施。

Now, let's take a closer look at our organic growth. Year-to-date, we've opened a total of 107 new units, including 30 that opened in Q3; for all of 2023, we are aiming to open a total of 150 units. Additionally, this year we have signed franchise development deals for over 200 new locations, bringing our pipeline for new units to over 1,100 signed agreements on top of the 2,300 restaurants already opened. This pipeline of organic growth is estimated to be worth approximately $60 million in incremental increase to adjusted EBITDA, which massively delevers us organically.

現在，讓我們仔細看看我們的有機成長。今年迄今，我們共開設了 107 個新單位，其中 30 個是在第三季開業的； 2023 年全年，我們的目標是總共開設 150 個單位。此外，今年我們還簽署了 200 多個新店的特許經營開發協議，在已開業的 2,300 家餐廳的基礎上，我們的新店管道已簽署協議達到 1,100 多個。預計這一有機成長管道的調整後 EBITDA 增量增量價值約為 6,000 萬美元，這將大幅降低我們的有機成長水準。

As mentioned, we are particularly focused on the growth of our polished casual segment, which now consists of our Twin Peaks and Smokey Bones concepts. Twin Peaks is a best-in-class brand that appeals to a broad demographic of customers across the country. The units produce industry leading AUVs of around $6 million while some of our highest volume locations in Florida are generating AUVs between $9 million and $12 million. They're highly profitable restaurants with an elevated food and beverage program that far surpasses anything else in the category. This year, we've opened 11 new Twin Peaks lodges, bringing our current portfolio to 106 units across 27 states and Mexico, of which more than 70% are franchised. For the remainder of the year, we plan to open five more lodges, ending 2023 with approximately 111 lodges; this is a 34% increase in unit count since FAT Brands acquired the brand in 2021 just two years ago.

如前所述，我們特別關注精緻休閒細分市場的成長，該細分市場現在由我們的 Twin Peaks 和 Smokey Bones 概念組成。 Twin Peaks 是一流的品牌，吸引了全國各地的廣大客戶。這些單位生產行業領先的 AUV，價值約為 600 萬美元，而我們位於佛羅裡達州的一些產量最高的工廠生產的 AUV 價值在 900 萬至 1200 萬美元之間。他們是利潤豐厚的餐廳，其食品和飲料計劃遠遠超過同類餐廳。今年，我們在 Twin Peaks 開設了 11 家新酒店，使我們目前的投資組合達到 106 家，遍布 27 個州和墨西哥，其中 70% 以上是特許經營酒店。在今年剩餘時間裡，我們計劃再開設 5 家旅館，到 2023 年底，旅館總數約為 111 家；自兩年前 FAT Brands 於 2021 年收購該品牌以來，單位數量增加了 34%。

Over the next several years, Twin Peaks plans to grow its unit count to more than 200 lodges and increase the mix of franchise locations to between 75% and 80%. We currently have over 125 new franchise units signed, paid, and committed to be built in the next five years. As mentioned, we also plan to selectively convert between 30 and 40 of the Smokey Bones units into Twin Peaks, which will help accelerate Twin Peaks' growth. These conversions can take as little as nine months compared to the 2.5 years needed to build a Twin Peaks from the ground up. The planned unit growth is expected to increase systemwide sales of Twin Peaks to approximately $1 billion. As a result of the concept's industry-leading economics and strong pipeline of profitable growth, as previously announced, we plan to take Twin Peaks public in the future; however, the timing and the size of the transaction will be subject to market conditions and other factors which could include simply a sale or spin out of the brand with proceeds primarily used to pay down debt.

在接下來的幾年裡，Twin Peaks 計劃將其單位數量增加到 200 多家，並將特許經營地點的比例增加到 75% 至 80%。目前，我們已簽約、支付並承諾在未來五年內建造超過 125 個新特許經營單位。如前所述，我們還計劃選擇性地將 30 到 40 個 Smokey Bones 單位轉換為 Twin Peaks，這將有助於加速 Twin Peaks 的成長。這些改造只需 9 個月，從頭開始建造雙子峰則需要 2.5 年。計劃中的單位成長預計將使 Twin Peaks 的全系統銷售額增加至約 10 億美元。正如先前所宣布的，由於該概念行業領先的經濟性和強勁的盈利增長管道，我們計劃在未來將 Twin Peaks 上市；然而，交易的時間和規模將取決於市場條件和其他因素，其中可能包括簡單地出售或剝離該品牌，所得收益主要用於償還債務。

Another avenue of growth we are pursuing is nontraditional venues; our Fatburger location at Six Flags Great Adventure in New Jersey, which opened last year has exceeded our expectations. As a result, in July, we announced an expansion of this partnership with a new restaurant at Six Flags Fiesta Texas. This is our sixth separate location in Texas with over 40 additional locations planned to open in the state over the next 10 years. Similarly, we opened a co-branded Marble Slab Creamery and Great American Cookies concept in Cook Children's Hospital in Fort Worth, Texas, and will continue to expand that partnership with a second location in their hospital in Prosper, Texas.

我們追求的另一個成長途徑是非傳統場所；我們去年在新澤西州六旗大冒險樂園開業的 Fatburger 餐廳超出了我們的預期。因此，我們在 7 月宣布擴大與德克薩斯州六旗嘉年華的一家新餐廳的合作關係。這是我們在德克薩斯州開設的第六家獨立門市，未來 10 年內計劃在該州開設 40 多家其他門市。同樣，我們在德州沃思堡庫克兒童醫院開設了Marble Slab Creamery 和Great American Cookies 聯合品牌概念店，並將繼續擴大與德州普羅斯珀醫院第二家醫院的合作關係。

We also announced a new development deal to bring 20 new franchises of Johnny Rockets to Texas over the next decade; the first location is planned to open in 2024 and will triple the chains footprint in the state. Texas continues to be a key growth market for FAT Brands and our portfolio overall, as exemplified by the 80-store development deal we signed in the quarter, which includes several Fatburger, Buffalo's Express, and Round Table Pizza locations across the state.

我們還宣布了一項新的開發協議，在未來十年內將約翰尼火箭隊的 20 個新球隊帶到德克薩斯州；第一家分店計劃於 2024 年開業，屆時該州連鎖店的足跡將增加兩倍。德州仍然是 FAT 品牌和我們整體產品組合的關鍵成長市場，我們在本季簽署的 80 家門市開發協議就是例證，其中包括全州的多家 Fatburger、Buffalo's Express 和 Round Table Pizza 門市。

Our brands are also expanding internationally. We plan to open 10 new franchised Hot Dog on a Stick locations in Iraq over the next five years, the first unit is slated to open next year in 2024. There is also demand in our snack and dessert category; we signed a deal to open 25 new franchise Pretzelmaker locations in Canada over the next 10 years. In doing so, we are building on Pretzelmaker's existing footprint of over 50 Canadian units, which underscores our dedication to international growth as we continue scaling the brand. This deal comes on the heels of the third-quarter's comprehensive re-brand of Pretzelmaker. Pretzelmaker's new look will complement the brands increased demand for online and to-go orders while continuing to offer fresh baked bite-sized products directly from Pretzelmaker's bakery case. The new design is also optimized for drive-through locations, to date, we have opened three drive-through locations, two of which opened this year.

我們的品牌也在國際化擴張。我們計劃未來五年在伊拉克開設 10 家新的 Hot Dog on a Stick 特許經營店，第一家店預計明年 2024 年開業。我們的零食和甜點類別也有需求；我們簽署了一項協議，將在未來 10 年內在加拿大開設 25 家新的 Pretzelmaker 特許經營店。在此過程中，我們在 Pretzelmaker 現有的 50 多家加拿大分店的基礎上再接再厲，這突顯了我們在不斷擴大品牌規模的同時致力於國際增長的決心。這筆交易是在 Pretzelmaker 第三季全面品牌重塑之後進行的。 Pretzelmaker 的新外觀將滿足品牌對線上和外送訂單不斷增長的需求，同時繼續直接從 Pretzelmaker 的麵包櫃提供新鮮出爐的一口大小的產品。新設計也針對得來速店進行了最佳化，迄今為止，我們已經開設了三家得來速店，其中兩家是今年開幕的。

Over the last two years, our Great American Cookies brand has also experienced accelerated growth, opening 80 new locations while entering new states such as Arizona, Oregon, Illinois, and New Mexico. This summer, the brand celebrated its 400th opening, including its first location in Philadelphia, which broadened its East Coast presence and increased brand visibility. Since then, the brand has also opened in the Orlando market and debuted for the first time in the Pacific Northwest. Great American Cookies is now located in 33 states and five countries around the world and continues to find success as a co-branded model with sister brand Marble Slab Creamery, there are now over 150 co-branded locations worldwide.

過去兩年，我們的 Great American Cookies 品牌也經歷了加速成長，開設了 80 家新店，同時進入了亞利桑那州、俄勒岡州、伊利諾伊州和新墨西哥州等新州。今年夏天，該品牌慶祝了其第 400 家開業，其中包括在費城開設第一家門市，這擴大了其東海岸的影響力並提高了品牌知名度。此後，該品牌也開拓了奧蘭多市場，並首次在太平洋西北地區首次亮相。 Great American Cookies 現已遍布全球 33 個州和 5 個國家，並作為與姊妹品牌 Marble Slab Creamery 的聯名模式繼續取得成功，目前在全球擁有 150 多個聯名店。

We are proud to note all three of our QSR snack brands -- Great American Cookies, Marble Slab Creamery, and Pretzelmaker -- were named to QSR's best franchise deals list in September further illustrating the strength of our concepts. Our fast casual brands have always also opened a location in Orlando, which features a double drive-through lane to meet high traffic demand and a second location in Little Rock, Arkansas. It also received recognition as a top innovator in the fast casual space for delivery from Nation's Restaurant News as always continues to see strong demand for delivery post-pandemic. Further underscoring the growth of our brands, we've received a number of press accolades this quarter, 13 of our brands were recognized in Franchise Times franchise 400 list. Additionally, Fatburger was again mentioned as one of the most iconic and well-loved burgers in Los Angeles by the LA Times.

我們很自豪地註意到，我們的三個 QSR 零食品牌——Great American Cookies、Marble Slab Creamery 和 Pretzelmaker——均於 9 月份入選 QSR 最佳特許經營交易名單，進一步證明了我們理念的優勢。我們的快速休閒品牌也始終在奧蘭多開設了一家門市，該門市設有雙車道以滿足高流量需求，並在阿肯色州小石城開設了第二家門市。該公司也被《國家餐廳新聞》評為快速休閒送餐領域的頂級創新者，因為疫情後人們對送餐的需求始終強勁。本季我們獲得了多項媒體讚譽，進一步凸顯了我們品牌的成長，我們的 13 個品牌入選《Franchise Times》特許經營 400 強名單。此外，Fatburger 再次被《洛杉磯時報》評為洛杉磯最具代表性和最受歡迎的漢堡之一。

During the quarter, we also bolstered our Board of Directors by welcoming five new directors: Peter Feinstein, Matthew Green, John Metz, James Ellis, and John Allen. Our Board now consists of 14 members. John Allen, Peter Feinstein, and Matthew Green will also serve on our Audit Committee. We are confident that our new Board Members' contributions will help us to drive returns for our shareholders.

在本季度，我們也透過歡迎五位新董事來強化董事會：Peter Feinstein、Matthew Green、John Metz、James Ellis 和 John Allen。我們的董事會現在由 14 名成員組成。約翰艾倫 (John Allen)、彼得范斯坦 (Peter Feinstein) 和馬修格林 (Matthew Green) 也將擔任我們的審計委員會成員。我們相信，新董事會成員的貢獻將有助於我們為股東帶來回報。

I would also like to share an update on the FAT Brands Foundation. To date, over 35 grants have been awarded to a wide range of nonprofit organizations in areas including food insecurity, mental health, the arts, adults and children with disabilities, STEM, education, and more. What makes it even more rewarding is that the grants hit close to home -- all near FAT Brands locations. Further, during Q3, the team at Marble Slab Creamery and Great American Cookies were proud to announce a partnership with March of Dimes to show support and raise money for their NICU support teams during September-- the NICU awareness month.

我還想分享 FAT 品牌基金會的最新動態。迄今為止，已向眾多非營利組織提供了超過 35 筆贈款，涉及領域包括糧食不安全、心理健康、藝術、殘疾成人和兒童、STEM、教育等。更有意義的是，這些補助金都在離家很近的地方——都在 FAT Brands 地點附近。此外，在第三季度，Marble Slab Creamery 和Great American Cookies 的團隊自豪地宣布與March of Dimes 建立合作夥伴關係，在9 月（新生兒重症監護月意識月）期間為他們的新生兒重症監護室支持團隊表示支持並籌集資金。

To close, there are significant opportunities on the horizon for FAT Brands and in summary, we are in a strong position for continued growth. We have a veteran leadership team and a robust management platform, and we possess the capability to seamlessly and cost-effectively integrate new brands. And our pipeline for organic growth is healthy and continually developing ensuring sustained growth for years to come, which will naturally delever our balance sheet. We look forward to updating you on our progress on future calls. We sincerely appreciate you joining us today and for your interest in FAT Brands.

最後，FAT Brands 面臨著巨大的機遇，總而言之，我們處於持續成長的有利地位。我們擁有經驗豐富的領導團隊和強大的管理平台，並且有能力無縫且經濟高效地整合新品牌。我們的有機成長管道是健康的，並且不斷發展，確保未來幾年的持續成長，這自然會減少我們的資產負債表。我們期待在未來的通話中向您通報我們的最新進展。我們衷心感謝您今天加入我們並感謝您對 FAT 品牌的興趣。

And with that, I would like to hand it over to Ken Kuick to talk about our financial highlights from the quarter. Ken.

說到這裡，我想把它交給肯庫克來談談我們本季的財務亮點。肯.

Thanks Andy.

謝謝安迪。

Total revenue during the third quarter increased 6% to $109.4 million driven by a 4.3% increase in royalties, a 2% increase in company-owned restaurant revenues, a 228.5% increase in franchise fees, and an 18.9% increase in revenues from our manufacturing facility.

第三季總營收成長 6%，達到 1.094 億美元，主要得益於特許權使用費成長 4.3%、公司自營餐廳收入成長 2%、特許經營費成長 228.5% 以及製造收入成長 18.9%設施。

Cost and expenses remained largely unchanged in the quarter, increasing 0.5% from the year-ago quarter. Included in costs and expenses, general and administrative expense, decreased to $24.5 million in the third quarter from $28.8 million in the prior year period, primarily due to the recognition of $1 million related to employee retention credits during the third quarter of 2023 and lower professional fees related to certain litigation matters. Cost of restaurant and factory revenues increased to $59.2 million in the third quarter of 2023 compared to $55.3 million in the prior year quarter due to higher company-owned restaurant and fill factory revenues and the recognition of employee retention credits during the third quarter of 2022. The depreciation and amortization expense increased slightly to $7 million in the third quarter from $6.9 million in the year-ago quarter, primarily due to depreciation of new company-owned restaurants, property, and equipment. Advertising expense increased to $11.7 million in the third quarter of this year from $11.2 million in the year ago period and these expenses are very in relation to advertising revenues.

本季成本和費用基本保持不變，較去年同期增長 0.5%。包括在成本和費用中的一般和管理費用，從上年同期的2880 萬美元減少到第三季度的2450 萬美元，主要是由於在2023 年第三季度確認了與員工保留積分相關的100 萬美元以及較低的專業費用。與某些訴訟事項相關的費用。由於公司自有餐廳和灌裝工廠收入增加以及 2022 年第三季員工保留積分的確認，餐廳和工廠收入成本從去年同期的 5,530 萬美元增至 2023 年第三季的 5,920 萬美元。第三季度的折舊和攤銷費用從去年同期的690 萬美元小幅增加至700 萬美元，主要是由於公司新擁有的餐廳、財產和設備的折舊。今年第三季的廣告費用從去年同期的 1,120 萬美元增加到 1,170 萬美元，這些費用與廣告收入密切相關。

Total other expense net for the third quarter of 2023 and 2022 was $32.6 million and $23.9 million, respectively, which is inclusive of interest expense of $29.7 million and $24.5 million respectively. Additionally, total other expense net for the third quarter of 2023 included a $2.7 million net loss on extinguishment of debt related to the repurchase of $78.4 million in aggregate principal amount of outstanding securitization notes, which will be held pending resell to third-party investors. In total, we have $218.3 million of retained securitization notes on our balance sheet available for third-party investors.

2023 年和 2022 年第三季的其他費用淨額總額分別為 3,260 萬美元和 2,390 萬美元，其中分別包括 2,970 萬美元和 2,450 萬美元的利息費用。此外，2023 年第三季的其他費用淨額總額包括因回購本金總額為7,840 萬美元的未償還證券化票據而產生的270 萬美元的債務清償淨損失，這些票據將在轉售給第三方投資者之前持有。我們的資產負債表上總共有 2.183 億美元的保留證券化票據可供第三方投資者使用。

Net loss for the quarter was $24.7 million, or $1.59 per diluted share, compared to a net loss of $23.4 million, or $1.52 per diluted share in the prior year quarter. And on an as-adjusted basis, our net loss was $17.1 million, or $1.14 per diluted share, compared to a net loss of $16.3 million, or $1.8 per diluted share in the prior year quarter. And lastly, adjusted EBITDA for the quarter was $21.9 million a $2.7 million decrease compared to $24.6 million in the year ago quarter. And as a reminder, last year's quarter included $7.2 million of employee retention tax credits and excluding these credits, adjusted EBITDA increased $4.5 million or 26% over last year's quarter. And with that, operator, please open the line for questions.

本季淨虧損為 2,470 萬美元，即稀釋後每股 1.59 美元，去年同期淨虧損為 2,340 萬美元，即稀釋後每股 1.52 美元。在調整後的基礎上，我們的淨虧損為 1,710 萬美元，即稀釋後每股 1.14 美元，而去年同期的淨虧損為 1,630 萬美元，即稀釋後每股 1.8 美元。最後，本季調整後 EBITDA 為 2,190 萬美元，比去年同期的 2,460 萬美元減少 270 萬美元。提醒一下，去年季度包括 720 萬美元的員工保留稅收抵免，排除這些抵免，調整後的 EBITDA 比去年季度增加了 450 萬美元，即 26%。那麼，接線員，請開通提問線路。

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Joe Gomes, Noble Capital.

謝謝。我們現在開始問答環節。 （操作員指示）Joe Gomes，Noble Capital。

Good afternoon. Thanks for taking my questions.

午安.感謝您回答我的問題。

Hi, Joe.

嗨，喬。

Hi, Joe.

嗨，喬。

So Andy, I wanted to start out about the quarter -- as your expectations going into the quarter -- do the quarter results meet your expectations? Were they better or worse? And if they were better or worse, what drove the above or below where your expectations were for the quarter?

安迪，我想從本季開始——正如您對本季的預期一樣——季度業績是否符合您的預期？它們是更好還是更差？如果它們更好或更差，是什麼導致該季度高於或低於您的預期？

Well, I think, we did our estimates of earnings per share and our sales estimates so we're happy and on both fronts there. And something that -- I think we continue to see success in this new franchise sales. And we are having sold now 200 more stores in year-to-date, adding to our pipeline, just shows the strength and interest of our franchisees and partners in growing the portfolio of brands. So that's it's always a very good measurement of franchisee health.

嗯，我認為，我們對每股收益和銷售額進行了估計，所以我們對這兩方面都很滿意。我認為我們將繼續在新的特許經營銷售中看到成功。今年迄今為止，我們已經出售了 200 多家門市，增加了我們的管道，這充分錶明了我們的特許經營商和合作夥伴在擴大品牌組合方面的實力和興趣。因此，這始終是衡量加盟主健康狀況的一個非常好的衡量標準。

Okay, great. Thanks for that. And I wanted to talk about same-store sales for a moment, if we could, year-to-date, I think you said they were up 1.3%, but that's down from the first quarter when same-store sales were 4.3% positive. So just wondering maybe you just give us what that was driving same-store sales? And how they were just for the third quarter? And any color there would be appreciated.

好的，太好了。感謝那。我想談談同店銷售額，如果可以的話，今年迄今為止，我想你說過它們增長了 1.3%，但這比第一季的同店銷售額下降了 4.3% 。所以只是想知道也許您只是告訴我們推動同店銷售的因素是什麼？他們第三季的表現如何？任何顏色都會受到讚賞。

Yes. I mean, we are seeing what -- I think everyone else has seen, which is a softer Q3 than Q2 or Q1 and Q2. It's spotty as to which brand it might apply to, for example, Ponderosa and Bonanza, our steakhouse chains, are now up 18% or 19% year-to-date in comp same-store sales probably because it's a $15 or $16 all-you-can-eat meal with the steak. But we're seeing our snack brands and our dessert brands like cookies, ice cream, pretzels, and hotdogs -- those brands -- are up nicely. Again, maybe customers are moving their dollars around. So, it's just a little bit choppy -- burgers are a little bit flat for the quarter. And so, I don't know if it's consumer spending across the board, but it's just a little choppier than it was before. It's still positive and we're still opening a lot of stores: we'll open 150 new stores this year. So, things are pretty good, it's just a little softer than it was last quarter.

是的。我的意思是，我們正在看到——我想其他人都看到了，第三季度比第二季或第一季和第二季更加疲軟。至於它可能適用於哪個品牌，情況參差不齊，例如，我們的牛排連鎖店Ponderosa 和Bonanza，今年迄今為止的同店銷售額同比增長了18% 或19%，可能是因為它的售價為15 美元或16 美元——你可以和牛排一起吃。但我們看到我們的零食品牌和甜點品牌，如餅乾、冰淇淋、椒鹽捲餅和熱狗——這些品牌——都表現出色。再說一次，也許客戶正在轉移他們的資金。所以，這只是有點不穩定——漢堡在本季有點平淡。因此，我不知道消費者支出是否全面，但只是比以前稍微波動一些。這仍然是積極的，我們仍在開設很多商店：今年我們將開設 150 家新店。所以，情況非常好，只是比上季稍微軟一些。

Okay. And on that store openings, I know, I think at the beginning of the year you were using the 150 to 175 range and I think in the transcript for the second quarter, you said 175 now you're at 150. Outside of just timing of openings or anything behind that going back to those the low end of that range.

好的。關於新店開業，我知道，我認為在今年年初，您使用的是 150 到 175 的範圍，我認為在第二季度的成績單中，您說 175，現在是 150。除了時間之外空缺或任何後面的東西都可以追溯到該範圍的低端。

It's just pushing into Q1. It's a function of equipment availability and permitting delays. Mainly a little bit of hiring delays and training on the manager side, but it's just slipping a few units slipping into the next quarter and you get visibility early in the year of what people have under construction and their estimated completion dates and opening dates. And to be honest, it's probably no different than remodelling your kitchen; it doesn't always get done on time.

它剛剛進入第一季。它是設備可用性和允許延遲的函數。主要是經理方面的一些招聘延遲和培訓，但這只是一些單位滑入下個季度，你可以在年初看到人們正在建造的項目以及他們的預計完工日期和開業日期。老實說，這可能與改造廚房沒有什麼不同；它並不總是能按時完成。

Don't I know that. (laughter) The preferred -- I'll ask the question that I ask every quarter. You have the roughly $90 million that was due to be repaid and you haven't yet have any movements or anything new on the preferred that needs to be repaid.

難道我不知道嗎？ （笑聲）首選－我會問每季都會問的問題。您有大約 9,000 萬美元應償還，但您尚未有任何需要償還的優先股變動或任何新情況。

So we have modified that preferred a bit, meaning that we've traded some bonds for preferred and some of those bonds were sold to help redeem -- to redeem that preferred. There still ultimately $90 million outstanding down from $137 million, so we've made substantial progress in it. I mean, there is a high visibility focus for us right now in terms of best use of capital. And so we do plan to work hard on redeeming that preferred with additional liquidity.

因此，我們對優先股進行了一些修改，這意味著我們將一些債券換成了優先股，其中一些債券被出售以幫助贖回——以贖回優先股。最終仍有 9,000 萬美元未償付，低於 1.37 億美元，因此我們在這方面取得了實質進展。我的意思是，我們現在非常關注資本的最佳利用。因此，我們確實計劃努力透過額外的流動性來贖回優先股。

We have, as Ken pointed out, we have over $200 million of available for sale securities on our balance sheet that gives us liquidity on top of our cash balances, and to the extent that we can raise liquidity from the bond portfolio at prices that we like and use that to redeem preferred, we'll do that. But first and foremost, we want to make sure we have a substantial amount of excess liquidity just to have a long runway to achieve one of these debt repayment events. So, it's a juggling act of those things, but it's very much in our focus.

正如Ken 指出的那樣，我們的資產負債表上有超過2 億美元的可供出售證券，這些證券為我們提供了現金餘額之外的流動性，並且我們可以按照我們確定的價格從債券投資組合中提高流動性。喜歡並用它來兌換首選，我們會這樣做。但首先也是最重要的是，我們要確保我們擁有大量的過剩流動性，以便有很長的時間來實現這些債務償還事件之一。所以，這是一種兼顧這些事情的行為，但它才是我們關注的重點。

Okay. And then year-to-date, the adjusted EBITDA is about $64 million, for all of 2022 was about $89 million, which suggests you need about $25 million in the fourth quarter just to stay flat. That possibly -- do you think you can exceed what you did in 2022?

好的。今年迄今為止，調整後的 EBITDA 約為 6,400 萬美元，2022 年全年約為 8,900 萬美元，這意味著第四季度需要約 2,500 萬美元才能保持平穩。那有可能——你認為你能超越你在 2022 年所做的事情嗎？

So we think that we will exceed the 2022 numbers, Q4 should be very solid for us. And remember that we also had quite a large number of tax credits last year that we don't have this year. So, it's really substantial growth, we have to kind of look at it on its apples-to-apples basis. But we actually think that we will exceed the 2022 numbers with Q4, you know, yet to come.

因此，我們認為我們將超過 2022 年的數字，第四季度對我們來說應該非常穩定。請記住，去年我們還獲得了大量今年沒有的稅收抵免。所以，這確實是一個巨大的成長，我們必須在同類的基礎上來看待它。但我們實際上認為第四季度的數字將超過 2022 年的數字，你知道，但尚未到來。

Great. What more if I may -- I don't know if you guys could give what the quarter-end outstanding debt was in unrestricted cash?

偉大的。如果我可以的話，我不知道你們能否以不受限制的現金形式提供季度末未償債務？

Yes, I can, Joe. So, the unrestricted cash balance at the end of the quarter was $88 million. And as a reminder, we acquired Smokey on the first day of the fourth quarter for $30 million. And then on a debt basis -- let's talk face rather than book value -- the face value of our securitizations outstanding at the end of the third quarter was $1.158 billion.

是的，我可以，喬。因此，季度末不受限制的現金餘額為 8,800 萬美元。提醒一下，我們在第四季的第一天以 3000 萬美元收購了 Smokey。然後，以債務為基礎——讓我們談論面值而不是帳面價值——第三季末我們未償還證券化的面值為 11.58 億美元。

Great. Thanks, guys. Appreciate it. Great quarter,

偉大的。多謝你們。欣賞它。偉大的季度，

Joe, thank you.

喬，謝謝你。

Thanks, Joe.

謝謝，喬。

Alton Stump, Loop Capital.

奧爾頓·斯坦普（Alton Stump），Loop Capital。

Great. Thank you. Good afternoon, gentlemen. Just wanted to touch on the last question or last couple questions, obviously, I'm new in openings, you know, brought guidance down a little bit. I presume -- since of all that is just delays that seem to be impacting everyone right now in industry and there's no concern about underlying demand to build stores?

偉大的。謝謝。下午好，先生們。只是想談談最後一個問題或最後幾個問題，顯然，我是空缺職位的新手，你知道，這讓指導有點下降。我想——因為這一切都只是延誤，目前似乎正在影響行業中的每個人，並且不擔心建店的潛在需求？

You're correct -- it's like, I was joking earlier about your kitchen, not getting remodelled on time. It's really just slipping into Q1 as the stores are still on track. We have well over 100 stores on the chalkboard for 2024 and we'll get, we think, 175 again next year. But this year, we think it's going to be in the 150-something range, it will be more than 150, but I'm not sure how much more than 150.

你是對的——就像，我之前開玩笑說你的廚房沒有準時改造。實際上，這只是進入第一季度，因為商店仍在正常運作。我們在黑板上列出了 2024 年的 100 多家商店，我們認為明年將再次達到 175 家。但今年，我們認為會在 150 左右，會超過 150，但我不確定比 150 多多少。

That makes sense, thanks for that color, Andy. And then just on the promotional environment, obviously, commodities coming off of huge highs over the last 18-plus months seemed somewhat moderating. How much pricing do you feel -- you, actually, guys own 18 brands now, so I'm sure everyone is different. But how is -- do you view the overall? What kind of pricing promotional environment that you are seeing on average in your brands?

這是有道理的，謝謝你的顏色，安迪。然後，就促銷環境而言，顯然，大宗商品從過去 18 個多月的巨大高點回落似乎有所放緩。你覺得定價是多少——實際上，你們現在擁有 18 個品牌，所以我確信每個人都是不同的。但您如何看待整體情況？您的品牌平均看到什麼樣的定價促銷環境？

Well, we're definitely focused more on marketing initiatives now than we've had to be focused on in prior years with a low-interest rate environment and post-COVID bounce back demand by consumers, it wasn't hard to get people into the restaurants. And definitely, as we've entered 2023, we've had to spend more money and more time on marketing initiatives to drive brand awareness, to remind people that our restaurants are open. So they should come in -- you know, from a sports perspective, reminding people what sporting events are available at basically every single sporting event ever known to man is on TV, at the same time, you can really see anything you want.

嗯，我們現在肯定比前幾年更加關注行銷活動，在低利率環境和疫情後消費者需求反彈的情況下，讓人們進入並不難餐廳。當然，隨著我們進入 2023 年，我們必須花更多的錢和更多的時間在行銷活動上，以提高品牌知名度，提醒人們我們的餐廳仍在營業。所以他們應該進來——你知道，從體育的角度來看，提醒人們有哪些體育賽事，基本上人類所知的每一項體育賽事都在電視上，同時，你真的可以看到任何你想要的東西。

So just spending that time, not taking for granted that your restaurants reopen, you want people to come in has been a push for us. I think it's less about effective LTOs and LTOs cost a lot of money, they don't really drive a lot of new traffic. And we haven't seen huge success in driving profitability as much as we have just generally marketed the brands that are open and inviting customers in.

因此，只是花這段時間，而不是理所當然地認為你的餐廳重新開業，你希望人們進來，這對我們來說是一種推動。我認為這與有效的 LTO 無關，而且 LTO 花費很多錢，它們並沒有真正帶來大量新流量。我們還沒有看到在提高盈利能力方面取得的巨大成功，就像我們一般推銷開放並邀請客戶進入的品牌一樣。

That makes sense, thanks for that. And then -- just last question, I'll hop back in the queue -- congrats certainly on the Smokey Bones deal you've done. As you've mentioned, it's now only your second casual chain along with Twin Peaks, I guess should we be reading that this may potentially mean that you could look at other casual dining options down the road? Or is this just a case of very good assets came up at right price for you?

這是有道理的，謝謝你。然後——就最後一個問題，我會跳回到隊列中——當然祝賀你完成了與 Smokey Bones 的交易。正如您所提到的，現在它只是您與 Twin Peaks 一起開設的第二家休閒連鎖店，我想我們是否應該讀到這可能意味著您可以在未來考慮其他休閒餐飲選擇？或者這只是一個以合適的價格為您提供非常好的資產的案例？

Well, so two things. We consider Twin Peaks and Smokey Bones to be in what we call polished casual because they're higher AUVs, higher alcohol percentage, and then we have Buffalo's Cafe, Native Grill & Wings, and Hurricane Grill & Wings in the casual space along with Ponderosa and Bonanza. And so -- and then there's also have good bar business. But there's opportunity at Smokey Bones for our franchise sales team to really distribute that brand through our franchisee portfolio and get traction.

嗯，有兩件事。我們認為 Twin Peaks 和 Smokey Bones 屬於我們所謂的精緻休閒餐廳，因為它們的 AUV 較高，酒精含量較高，然後我們在休閒空間中還有 Buffalo's Cafe、Native Grill & Wings、Hurricane Grill & Wings 以及 Ponderosa和富礦。因此，酒吧生意也很好。但在 Smokey Bones，我們的特許經營銷售團隊有機會透過我們的特許經營商組合真正分銷品牌並獲得吸引力。

On the Twin Peaks, franchise partners have obligations and have capacity to build a good 20 stores next year, plus we'll build some corporate stores and convert some corporate stores. I don't think that you'll see us buy another Smokey Bones conversion opportunity in the next 12 months or so because we're sort of full of all we need to check the box for development opportunities. I mean, we bought another brand, I don't think we could find another 40 stores that we could open at the same time in the next 12 to 24 months; it's just too much and to ask from our team in terms of openings and capital to be deployed. So I think that's not on the table today, although there are other acquisition opportunities that we're interested in that will drive our factory business, and there's some that are just flat-out good deals out there.

在雙峰，特許經營合作夥伴有義務並且有能力明年建造 20 家商店，此外我們還將建造一些企業商店並改造一些企業商店。我認為您不會在接下來的 12 個月左右看到我們購買另一個 Smokey Bones 轉換機會，因為我們已經滿足了勾選開發機會框所需的一切。我的意思是，我們買了另一個品牌，我認為我們無法在未來 12 到 24 個月內找到另外 40 家可以同時開設的商店；這對我們的團隊提出的空缺和部署資金的要求實在是太多了。因此，我認為這不在今天的討論範圍內，儘管我們感興趣的其他收購機會將推動我們的工廠業務，而且有些收購機會絕對是一筆不錯的交易。

Finally, I think I had complained about before a year ago, that we really didn't see sellers really take thoughts of their multiples, and they're asking prices as rates went up 550 basis points. And you didn't see prices come down, and now I think you've seen prices come down to levels where deals can get done so that's definitely good news. It doesn't mean that we are going in another acquisition binge but rather if there's right deal from a delevering perspective -- that's a good cash flow multiple that fits in our other verticals, and we can use our synergies of our back office and one platform to acquire them -- we will. But really we're focused on growing this hockey stick of growth at Twin Peaks and also the factory, which has so much excess capacity, that we're excited about those two things in the organic pipeline.

最後，我想我一年前曾抱怨過，我們真的沒有看到賣家真正考慮他們的市盈率，他們在利率上漲 550 個基點的情況下要價。你沒有看到價格下降，現在我認為你已經看到價格下降到可以完成交易的水平，所以這絕對是個好消息。這並不意味著我們將進行另一場收購狂潮，而是如果從去槓桿化的角度來看是正確的交易——這是一個適合我們其他垂直行業的良好現金流倍數，我們可以利用我們的後台和一個公司的協同效應獲取它們的平台——我們會的。但實際上，我們專注於雙峰以及工廠的成長，工廠產能過剩，我們對有機管道中的這兩件事感到興奮。

[Gryphics] -- I meant to say polished casual, so thank you for correcting that. Thank you so much Andy, I appreciate that. I'll hop back in the queue.

[Gryphics]——我的意思是說優雅休閒，所以謝謝你的糾正。非常感謝安迪，我很感激。我會跳回到隊列中。

Thank you.

謝謝。

Roger Lipton, Lipton Financial.

羅傑‧利普頓，利普頓金融公司。

Yes, hi, Andy and Ken. So, the Smokey Bones deal closed on October 1.

是的，嗨，安迪和肯。因此，Smokey Bones 的交易於 10 月 1 日結束。

September 25th, which is technically the first day of the new quarter.

9 月 25 日，嚴格來說是新季度的第一天。

Of the new quarter. So, it's not obviously reflected in your results at all. So as of this quarter, you're now operating 61 company stores, I presume.

新季的。因此，它根本沒有明顯反映在您的結果中。我推測，截至本季度，您已經經營 61 家公司商店。

Yes, I mean, it brings our total to 180-something, 185 company-owned stores, somewhere in there between. 61 Smokey Bones, 57 Fazoli's, 33 Hot Dog on a Sticks, and 30-something Twin Peaks.

是的，我的意思是，這使得我們的商店總數達到 180 家左右，其中 185 家是公司自營商店，介於兩者之間。 61 種煙燻骨、57 種 Fazoli's、33 種熱狗棒和 30 種左右的 Twin Peaks。

Okay. So, it's obviously going to take us some time to restructure that portfolio in terms of how many you want to retain for the company? How many you want to sell to existing franchisees of other concepts? And how many might be convertible or conversion candidates? So, how would you guess that's that going to affect the fourth quarter in cash flow.

好的。那麼，就您想為公司保留多少人而言，我們顯然需要一些時間來重組該投資組合？您想向其他概念的現有特許經營商出售多少？有多少人可能是可轉換的或轉換候選人？那麼，您認為這將如何影響第四季度的現金流。

Couple of things -- we look at the 61-store portfolio. We're very excited to have this brand, and grow this brand, first and foremost. Second, only about two-thirds of the restaurants are even eligible for conversion. We don't know whether we get half or two-thirds of them converted -- and that's a function of landlord negotiations, and things like that. Probably 10 of them will be corporate stores, probably between 20 and 30 will be franchise locations, and the last 10, whether they're franchise or corporate, that remains to be seen there. 20 of them are absolutely in franchise markets and we have existing franchisees. 10 of them are in franchise markets, where we don't have a franchisee, and either one of our existing franchisees will step up and take it, or new franchisee will come along or will operate them and convert them as a corporate store.

有幾件事——我們看看 61 家商店的組合。我們非常高興能夠擁有這個品牌，首先也是最重要的是發展這個品牌。其次，只有大約三分之二的餐廳有資格轉型。我們不知道是否有一半或三分之二的人皈依了宗教——這取決於房東談判之類的事情。其中可能有 10 家將是企業商店，可能有 20 到 30 家將是特許經營店，而最後 10 家，無論是特許經營店還是企業店，還有待觀察。其中 20 家絕對屬於特許經營市場，並且我們擁有現有的特許經營商。其中 10 家位於特許經營市場，我們沒有特許經營商，我們現有的特許經營商之一將介入並接受它，或者新的特許經營商將出現或將經營它們並將其轉變為公司商店。

It also depends on, like I said, landlord negotiations and things like that. So, there's a little bit up in here, but not that much, we're pretty certain that 30 of the 40 -- over the next couple of years. So, it's not an overnight thing. We're going to operate all 61 of those Smokey Bones well into 2024. And in Q4, we're going to have a good Q4, and as I answered earlier to Joe Gomes, we expect that we will exceed our 2022 numbers from an adjusted EBITDA in annual basis because of that.

正如我所說，這也取決於房東談判之類的事情。所以，這裡有一點上升，但沒有那麼多，我們非常確定 40 中的 30 是在未來幾年內。所以，這不是一朝一夕的事。我們將在 2024 年運營所有 61 家 Smokey Bones。在第四季度，我們將有一個良好的第四季度，正如我之前回答 Joe Gomes 的那樣，我們預計我們將超過 2022 年的數字因此，按年度調整了EBITDA。

So is your hope -- so is it realistic to hope that Smokey Bones group of stores will not hurt the fourth quarter? Is that reasonable enough?

您的希望也是如此——希望 Smokey Bones 商店集團不會損害第四季度的業績是否現實？這夠合理嗎？

Right. Absolutely, it will help the fourth quarter. It will not hurt the fourth quarter.

正確的。毫無疑問，這將對第四季度有所幫助。這不會影響第四季。

Okay. Okay.

好的。好的。

It's a brand. It's a brand that we anticipate having $10 million a year in adjusted EBITDA from. So, unless there's some horrific seasonality, which there shouldn't be in the fourth quarter, and we expect it to be helpful to the fourth quarter.

這是一個品牌。我們預計該品牌每年的調整後 EBITDA 為 1000 萬美元。因此，除非出現一些可怕的季節性因素（第四季度不應該出現這種情況），否則我們預計這將對第四季度有所幫助。

Do you expect the $10 million incremental EBITDA will be in effect essentially already in the fourth quarter? In the next 12 months? Is it realistic to think that it will be up?

您預計 1000 萬美元的 EBITDA 增量將在第四季度基本生效嗎？未來 12 個月內？認為它會上漲現實嗎？

From a run-rate perspective in the next 12 months, yes. Will we see all of it in Q4 on a pro rata basis? No. Because there are certain synergies take months or couple of quarters to realize things like that. But it's definitely a net positive target and we're -- it's been an easy transition. They have a great team there where -- you know, this isn't a big slash-and-burn type of acquisition. We need those guys running those restaurants, our company-owned stores. So, we're very happy to have them on our team.

從未來 12 個月的運行率角度來看，是的。我們會在第四季度按比例看到所有這些嗎？不會。因為某些協同效應需要幾個月或幾個季度才能實現。但這絕對是一個淨積極目標，而且我們——這是一個輕鬆的過渡。他們擁有一支優秀的團隊——你知道，這並不是一場大刀闊斧的收購。我們需要那些經營這些餐廳、我們公司擁有的商店的人。所以，我們很高興他們加入我們的團隊。

Okay. That's helpful. As far as the co-branding and co-branding activity, which you made quite a bit of reference to in recent months. Can you give us any -- even if it's only anecdotal -- descriptions of how locations do when a second brand is added? Or even if a new locations open with two brands rather than one. And you have (multiple speakers) --

好的。這很有幫助。至於聯合品牌和聯合品牌活動，您最近幾個月多次提到了這一點。您能否給我們任何（即使只是軼事）描述，說明添加第二個品牌後各地點的表現如何？或者即使新開的店有兩個品牌而不是一個。你們有（多位發言者）－

Absolutely. We tend to see higher average unit volumes when there is co-branding. You can see 10% to 20% increases in your overall sales when you have the brands together because it gives you menu diversity. Today, we have about 280 co-branded locations. That's a combination of about 180 to 190 cookies, ice cream, and pretzels, some combination of the two out of three of those, and then, there's almost 100 Fatburger and Buffalo's Express locations in the co-branded. And that's been a very successful as our first co-branding back in 2012, and here we are 11 years later, we've got over 100 of those.

絕對地。當有聯合品牌時，我們往往會看到更高的平均單位銷售量。當您將多個品牌整合在一起時，您可以看到整體銷售額增加 10% 到 20%，因為它為您提供了菜單多樣性。如今，我們擁有約 280 家聯合品牌店。這是大約 180 到 190 種餅乾、冰淇淋和椒鹽捲餅的組合，或者是其中三者中的兩種的組合，然後，該聯合品牌中有近 100 家 Fatburger 和 Buffalo's Express 門市。早在 2012 年，我們的首次聯名品牌就非常成功，11 年後的今天，我們已經擁有了 100 多個聯名品牌。

And there's the franchise pipeline of 1,100. A significant portion of that pipeline, somewhere between 100 to 200 stores, have co-branding attached to them as well. Certainly, in the burger space, doing burgers and chicken wings together works really well. Cookies and ice cream together works and pretzels works really well.

還有 1,100 家特許經營店。該頻道的很大一部分（大約 100 到 200 家商店）也有聯合品牌。當然，在漢堡領域，漢堡和雞翅一起做效果非常好。餅乾和冰淇淋一起吃很有效，椒鹽捲餅也很有效。

Right. And presumably the franchisees weren't born yesterday in terms of their inclination to do this, nobody is forcing them, so the fact that they're stepping up speaks pretty well I guess of the prospect.

正確的。想必特許經營者並不是昨天才出生的，他們有這樣做的傾向，沒有人強迫他們，所以他們正在加強的事實很好地說明了我想的前景。

It's a very modest incremental equipment investment for a pretty decent increase in total sales averaging a volume number. So, it's a smart investment by essentially.

對於平均銷量的總銷售額相當可觀的成長而言，這是一項非常適中的增量設備投資。因此，這本質上是一項明智的投資。

Right. And relative to the productivity of the dough facility in Georgia, you've made some good progress there with supposedly 40% to 45% run rate. What would you guess you can do there in terms of percentage of capacity in '24?

正確的。相對於喬治亞州麵團工廠的生產率，你們已經取得了一些良好的進展，據說運行率達到了 40% 到 45%。就 24 年的容量百分比而言，您認為您可以在那裡做什麼？

Well, there's two things on which I want to be careful and not to confuse you on that -- I think you're going to find very positive. If we find another dough making business or cookie business that we can add into the portfolio, that will take its utilization from 40%-something to probably 60%. And when we've talked about long-term selling that business to another food manufacturer, and then getting it on term contracts for our franchise partners and using the proceeds to reduce debt. We think that that makes sense in a lot of the potential buyers in the market want excess capacity for their own products or to move other cookie dough business into our plant and then that frees up another plant for them. So that's one point.

嗯，有兩件事我要小心，不要讓你們感到困惑——我想你們會發現非常積極的一面。如果我們找到另一個可以添加到投資組合中的麵團製作業務或餅乾業務，那麼其利用率將從 40% 左右提高到 60%。當我們談到長期將該業務出售給另一家食品製造商，然後與我們的特許經營合作夥伴簽訂定期合約並利用所得收益來減少債務。我們認為，這是有道理的，因為市場上的許多潛在買家希望自己的產品擁有過剩的產能，或將其他餅乾麵團業務轉移到我們的工廠，然後為他們騰出另一家工廠。這是一點。

The other point is, for a very modest amount of money, somewhere between $1 million and $1.5 million, we've found that we can basically double the capacity of our existing facility before we even knock down a wall and take advantage of the extra 3.5 acres that we have. So basically, buying bigger mixing machines will take that 40% to 60% capacity -- or utilization, sorry -- cut in half and just give us down much more. So, we just have a tremendous amount of available utilization, available capacity, at that factory, and that's what people the marketplace we're looking for. And so, it will spur us to have some discussions about that in the coming year or two.

另一點是，只要花很少的錢，大約在100 萬到150 萬美元之間，我們發現，在我們推倒一堵牆並利用額外的3.5 美元之前，我們基本上可以將現有設施的容量增加一倍。我們擁有的英畝數。所以基本上，購買更大的攪拌機將使 40% 到 60% 的產能（抱歉，利用率）減少一半，只會讓我們失望更多。因此，我們在該工廠擁有大量的可用利用率、可用產能，而這正是我們在市場上尋找的人才。因此，這將促使我們在未來一兩年內對此進行一些討論。

Okay. Lastly, for the moment, can you give us any rough guidance in terms of the timing of the IPO for Twin Peaks?

好的。最後，您能否就Twin Peaks IPO 的時間安排給我們一些粗略的指導？

Well given the market conditions, I think it's hard to say whether this will be on 2024 Q2 or Q3 or whether we're better off waiting and letting the market window really opened where you see a little bit more of a return to normal. The good news is that the Twin Peaks brand is killing it in terms of growth and new store openings and -- well, they have opened somewhere around 111 units this year -- there's another 20-something stores for next year and the year after and so on.

考慮到市場狀況，我認為很難說這會發生在 2024 年第二季度還是第三季度，或者我們是否最好等待並讓市場窗口真正打開，您會看到更多地恢復正常。好消息是，Twin Peaks 品牌在成長和新店開幕方面正在大放異彩，而且——嗯，他們今年已經新開了大約 111 家店——明年和後年還有另外 20 家左右的商店。很快。

And we have the locations, this isn't like we're saying we're going to open them, but we're not sure if we can find the spot or if we can find a franchisee. We have 125 committed franchise units in our system; the franchisee is obligated to build stores next year and thereafter, and now we have 40 locations that can be converted.

我們有地點，這並不是說我們要開設它們，但我們不確定是否能找到地點或是否能找到特許經營商。我們的系統中有 125 個承諾特許經營單位；加盟商有義務在明年及此後建造店鋪，現在我們有40個可以轉換的店鋪。

So if we have to wait a little while, it just means that the brand is going to be even bigger and even more profitable and the valuation should be better; so if anything waiting helps us. But we'll have to see what the timing is given the market, and in case anybody comes along and wants to just buy the brand outright from us in the next couple of years, that's always an option too.

所以如果要再等一段時間，說明這個品牌會更大，利潤會更高，估值也會更好；所以如果等待對我們有幫助的話。但我們必須看看市場給出的時機，如果有人想在未來幾年內從我們這裡直接購買該品牌，這也總是一個選擇。

Right. And just to clarify, the $218 million of securitized bonds, I guess you call them on your balance sheet, so you can pick your spots -- but I just want to make sure I understand -- you can pick your spot in terms of selling them and the price in the marketplace. So, you will be able to get $218 million for interest rates or higher, obviously, a great deal higher now than when those securitized were created. Is that correct?

正確的。澄清一下，2.18 億美元的證券化債券，我猜你會在你的資產負債表上稱呼它們，這樣你就可以選擇你的位置——但我只是想確保我理解——你可以在出售方面選擇你的位置他們和市場上的價格。因此，您將能夠獲得 2.18 億美元或更高的利率，顯然，現在比創建證券化產品時要高得多。那是對的嗎？

The way I would think about it is we have $50-plus million in cash after the acquisition of Smokey Bones or cash equivalents, and then we have this $200 million and almost $220 million available for sale asset-backed securities bonds. And you're right that these bonds were issued for the most part in 2021 fixed rates that may average somewhere around 6.75% to 7%-something.

我的想法是，在收購 Smokey Bones 或現金等價物後，我們擁有 50 多萬美元的現金，然後我們還有這 2 億美元和近 2.2 億美元可出售的資產支持證券債券。你說得對，這些債券大部分是在 2021 年以固定利率發行的，平均利率可能約為 6.75% 至 7% 左右。

But today's rates are considerably higher, so those bonds would sell at a slight discount today versus par back in 2021. That could be a 5% discount, a 7% discount, whatever something, but nothing crazy. It's really, you know, worst case way to think of it probably is, there's $220 million of securities and you're going to get at least $200 million maybe $215 million, who knows. But the point is that they're available, it gives us liquidity. We want to make an acquisition liquidity to run the business and that's what we're focused on.

但今天的利率要高得多，因此這些債券今天的售價將比 2021 年的票面價格略有折扣。這可能是 5% 的折扣、7% 的折扣，無論如何，但沒什麼瘋狂的。事實上，你知道，最糟的情況可能是，有 2.2 億美元的證券，你將獲得至少 2 億美元，也許 2.15 億美元，誰知道呢。但關鍵是它們是可用的，它為我們提供了流動性。我們希望獲得收購流動性來經營業務，這就是我們的重點。

Now that the markets are not as liquid as they once were, we all know that, and given where rates are and things like that. So, it's all a function of subject to having a buyer on the other end of the phone that's at a price you want to sell it.

我們都知道，現在市場的流動性不如以前，而且考慮到利率和類似的情況。因此，這一切都取決於電話另一端是否有買家以您想要出售的價格。

Right, got it. I will clarify that because I was in my mind, I was thinking you might only be worth $160 million or $170 million, but the --

對了，明白了。我要澄清的是，因為我在心裡，我認為你可能只值 1.6 億或 1.7 億美元，但是——

No, we would not be sellers at those levels. And also remember that while we hold those bonds were earning, we earned the coupon on that. So, we pay it and then we get it back like a bundled or does every month, so it's not really any cost to having those available. They're structured and they sit on the balance sheet and it's like we can jump into the cash register and pull it out and turn it into cash we need to.

不，我們不會成為這些級別的賣家。還要記住，當我們持有這些債券並賺取收益時，我們就賺取了息票。所以，我們支付它，然後我們像捆綁或每月一樣收回它，所以擁有這些可用的實際上並沒有任何成本。它們是結構化的，位於資產負債表上，就像我們可以跳進收銀機，將其取出，然後將其變成我們需要的現金。

Very helpful and liquidity is good. Thanks, Andy.

非常有幫助，流動性也很好。謝謝，安迪。

Any other questions?

還有其他問題嗎？

As we have no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to Andy Wiederhorn for any closing remarks.

由於我們沒有其他問題，我們的問答環節到此結束。我想將會議轉回給安迪·維德霍恩 (Andy Wiederhorn) 發表閉幕詞。

Operator, thank you very much. Everyone, thank you for joining us and look forward to talking to you again on our next call. Have a good evening.

接線員，非常感謝您。各位，感謝您加入我們，並期待在下次通話中再次與您交談。祝你晚上愉快。

The conference has now concluded. Thank you for attending today's presentation. You may all now disconnect.

會議現已結束。感謝您參加今天的演講。你們現在可以斷開連結了。