FAT Brands Inc (FATAV) 2024 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and thank you for standing by.

下午好，女士們先生們，感謝你們的支持。

Welcome to FAT Brands Inc., second quarter 2024 earnings conference call.

歡迎參加 FAT Brands Inc. 2024 年第二季財報電話會議。

(Operator Instructions) Please note that this conference is being recorded today, July 31, 2024.

（操作員說明）請注意，本次會議將於今天（2024 年 7 月 31 日）進行錄製。

On the call from FAT Brands are Chairman of the Board, Andy Wiederhorn, and Co-Chief Executive Officer and Chief Financial Officer, Ken Kuick.

接受 FAT Brands 電話採訪的是董事會主席 Andy Wiederhorn 和聯合執行長兼財務長 Ken Kuick。

This afternoon, the company made its second quarter 2024 financial results publicly available.

今天下午，該公司公佈了 2024 年第二季財務業績。

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.

請參閱收益發布和收益補充，兩者均可在本公司網站 www.fatbrands.com 的投資者部分取得。

Each contain additional details about the first quarter.

每項都包含有關第一季的更多詳細資訊。

But before we begin, I must remind everyone that part of the discussion today will include forward-looking statements.

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。

These forward-looking statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them.

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。

Actual results may differ materially from those indicated by these forward-looking statements due to a number of risks and uncertainties.

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。

The company does not undertake to update these forward-looking statements at a later date.

該公司不承諾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.

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 metrics, which I believe can be useful in evaluating its performance.

在今天的電話會議中，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。

The presentation of this additional information should not be considered in isolation nor as a substitute for the results prepared in accordance with GAAP.

不應孤立地考慮此附加資訊的呈現，也不應將其視為根據 GAAP 準備的結果的替代品。

Reconciliations to comparable GAAP measures are available in today's earnings release.

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.

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

Thank you, operator.

謝謝你，接線生。

I'd like to begin by thanking all of our team members, franchisees, and dedicated employees across our brand portfolio.

首先，我要感謝我們品牌組合中的所有團隊成員、特許經營者和敬業的員工。

Their unwavering commitment and strong execution are the driving forces behind our continued growth.

他們堅定不移的承諾和強大的執行力是我們持續成長的動力。

First, let's briefly discuss our financial highlights for the second quarter.

首先，讓我們簡單討論一下第二季的財務亮點。

Total revenue grew 42.4% to $152 million compared to $106.8 million in the prior year quarter, driven by the acquisition of Smokey Bones in September of 2023.

受 2023 年 9 月收購 Smokey Bones 的推動，總營收成長 42.4%，達到 1.52 億美元，去年同期為 1.068 億美元。

System-wide sales grew to $614.7 million, a 7.3% increase when compared to the prior year quarter.

全系統銷售額成長至 6.147 億美元，與去年同期相比成長 7.3%。

Turning to profitability.

轉向盈利能力。

Adjusted EBITDA was $15.7 million compared to $23.1 million in last year's same quarter.

調整後 EBITDA 為 1,570 萬美元，去年同期為 2,310 萬美元。

It's important to note that in Q2 of 2023, we received employee retention tax credits of $12.7 million versus $2.1 million in Q2 of this year, a difference of $10.6 million.

值得注意的是，2023 年第二季度，我們獲得了 1,270 萬美元的員工保留稅收抵免，而今年第二季度為 210 萬美元，相差 1,060 萬美元。

If you exclude the ERT fees and you look at adjusted EBITDA on an apples-to-apples basis, our adjusted EBITDA actually increased $2.8 million or 30.8% in Q2 of 2024.

如果排除 ERT 費用並逐一查看調整後 EBITDA，我們的調整後 EBITDA 實際上在 2024 年第二季度增加了 280 萬美元，即 30.8%。

Over the last several years, FAT Brands has experienced significant expansion, boasting a portfolio of 18 diverse brands.

在過去的幾年裡，FAT Brands 經歷了顯著的擴張，擁有 18 個不同品牌的產品組合。

To support this rapid expansion and to follow -- and to allow for continued growth, which together form the cornerstone of our strategy, we have implemented a robust and comprehensive management and systems platform.

為了支持這種快速擴張並跟隨並實現持續成長，這共同構成了我們策略的基石，我們實施了強大而全面的管理和系統平台。

The infrastructure was designed to not only sustain our current brands but also enable an efficient and accretive incorporation of other brands that we may acquire.

此基礎設施的設計不僅是為了維持我們現有的品牌，而且還能夠有效率、增值地整合我們可能收購的其他品牌。

This month, we were recognized for our commitment to excellence throughout our continued growth, our new spot on Time Magazine's and Statista's America's best midsized companies of 2024 list.

本月，我們因在持續發展過程中追求卓越的承諾而獲得認可，並在《時代》雜誌和 Statista 的 2024 年美國最佳中型公司名單中名列前茅。

The list factored in revenue growth, employee satisfaction and sustainability transparency.

該榜單考慮了收入成長、員工滿意度和永續發展透明度。

Our brands also achieved many accolades over the quarter, including 11 of our brands being named to Technomics top 500 list for 2024, which ranks the highest grossing restaurant brands in the US.

我們的品牌在本季度也獲得了多項榮譽，包括我們的 11 個品牌入選 Technomics 2024 年 500 強榜單，該榜單排名美國最賺錢的餐廳品牌。

It has always been recognized by Technomic Ignite consumer for the highest score and the value amongst other fast casual brands.

在其他快速休閒品牌中，它一直被Technomic Ignite消費者認可為最高評分和價值。

And Marble Slab Creamery receiving a top spot on USA TODAY's 2024 10 Best Readers' Choice Awards list in the dessert and treat category.

Marble Slab Creamery 在《今日美國》2024 年 10 名最佳讀者選擇獎甜點和零食類別中名列前茅。

Now let me provide some updates on each of our three strategic priorities.

現在讓我提供有關我們三個戰略重點的一些最新情況。

First, organic growth.

首先，有機增長。

As of June 30, 2024, our franchisee base consisted of approximately 790 franchisees who operate in aggregate of approximately 2,100 restaurants, including restaurants under construction.

截至2024年6月30日，我們的特許經營商基礎由約790家特許經營商組成，他們總共經營約2,100家餐廳，包括在建餐廳。

We also directly own and operate approximately 190 corporate restaurants across four brands.

我們還直接擁有並經營四個品牌的約 190 家企業餐廳。

In the second quarter, we expanded our footprint by opening 24 new locations, bringing our total year-to-date openings through July 31 to 45 units.

第二季度，我們開設了 24 家新店，擴大了業務範圍，使截至 7 月 31 日的年初至今新開店總數達到 45 家。

We anticipate opening 120 new units in total this year, which is comparable to the amount of new stores we opened in 2023.

我們預計今年將總共開設 120 家新店，與 2023 年開設的新店數量相當。

Both established and new franchisees alike are actively signing new development agreements for not only brands they currently own and operate, but also for other brands within our portfolio.

現有的和新的特許經營商都在積極簽署新的開發協議，不僅為他們目前擁有和經營的品牌，也為我們投資組合中的其他品牌。

This ongoing investment and diversification by our franchisees is a strong indicator of the overall health and confidence within the FAT franchise system.

我們特許經營商的持續投資和多元化是 FAT 特許經營系統整體健康狀況和信心的有力指標。

Our development pipeline remains robust with over 1,100 additional units slated to open in the coming years.

我們的開發案依然強勁，預計未來幾年將新增 1,100 多個單位。

We project when opened that this substantial pipeline of additional units can generate approximately $50 million to $60 million in incremental adjusted EBITDA, which provides an opportunity to organically reduce our leverage.

我們預計，這龐大的額外產能管道開業後，可產生約 5,000 萬至 6,000 萬美元的增量調整後 EBITDA，這為有機降低我們的槓桿率提供了機會。

As part of this pipeline, we are prioritizing accelerated growth within our polished casual segment, which consists of our Twin Peaks and Smokey Bones brands.

作為該通路的一部分，我們優先考慮加速休閒休閒細分市場的成長，其中包括 Twin Peaks 和 Smokey Bones 品牌。

Twin Peaks is currently our fastest-growing concept with average unit volumes at company-operated locations of $6 million, but at some key market locations, particularly in Florida, locations generate sales between $9 million and $12 million.

Twin Peaks 是我們目前成長最快的概念，公司營運地點的平均單位銷售量為 600 萬美元，但在一些關鍵市場地點，特別是佛羅裡達州，銷售額在 900 萬至 1200 萬美元之間。

Twin Peaks currently operates 113 locations, up from 83 locations when we acquired the brand 2.5 years ago.

Twin Peaks 目前擁有 113 家門市，而 2.5 年前我們收購該品牌時擁有 83 家門市。

During the quarter, we opened a lodge in Naples, Florida.

本季度，我們在佛羅裡達州那不勒斯開設了一家旅館。

And in July, we opened a restaurant in Fort Mill, South Carolina, our fourth location in that state.

七月，我們在南卡羅來納州米爾堡開設了一家餐廳，這是我們在州內的第四家餐廳。

Most of our development pipeline is weighted to the back half of the year when we plan to open 12 to 15 total new Twin Peaks ending 2024 with approximately 125 lodges.

我們的大部分開發案都集中在今年下半年，屆時我們計劃在 2024 年底前開設 12 至 15 個新的 Twin Peaks 度假村，其中約有 125 間旅館。

This will equate to a growth in unit count since our 2021 acquisition by approximately 50%.

這將相當於自 2021 年收購以來單位數量增加約 50%。

Over the next five years, the Twin Peaks development pipeline calls for 125 additional new restaurants, potentially driving system-wide sales to around $1 billion and 250 units by account.

在接下來的五年裡，Twin Peaks 開發計畫需要增加 125 家新餐廳，這可能會推動整個系統的銷售額達到 10 億美元左右，銷售額達到 250 家。

The opening of these restaurants will increase the mix of franchise locations to between 75% and 80% of the total unit count.

這些餐廳的開業將使特許經營店的數量增加到總店數的 75% 至 80%。

As you know, we purchased Smokey Bones in Q4 of last year.

如您所知，我們在去年第四季度購買了 Smokey Bones。

Our intention is to use Smokey Bones to fuel Twin Peaks growth through conversions, while over time still restoring the Smokey Bones brand to the 120 unit count, it once had.

我們的目的是利用 Smokey Bones 透過轉換來推動 Twin Peaks 的成長，同時隨著時間的推移，將 Smokey Bones 品牌的數量恢復到以前的 120 台。

This fall, we will complete our first Smokey Bones to Twin Peaks conversion in Lakeland, Florida.

今年秋天，我們將在佛羅裡達州萊克蘭完成首次 Smokey Bones 到 Twin Peaks 的改造。

We expect several additional conversions to take place later this year, with the majority occurring throughout 2025 and 2026.

我們預計今年稍後將進行幾次額外的改造，其中大部分將在 2025 年和 2026 年進行。

In May, Twin Peaks and Smokey bones as a combined entity confidentially submitted a registration statement to the Securities and Exchange Commission to become a stand-alone public reporting company.

今年 5 月，Twin Peaks 和 Smokey Bones 作為合併實體向美國證券交易委員會秘密提交了一份註冊聲明，成為一家獨立的公開報告公司。

While the timing and the size of any transaction is subject to market conditions and other factors, we are working diligently to expedite a successful transaction.

雖然任何交易的時間和規模都受到市場條件和其他因素的影響，但我們正在努力加快交易的成功。

We view an IPO or alternative transaction as an opportunity to monetize the business for the benefit of FAT shareholders.

我們將 IPO 或另類交易視為將業務貨幣化以造福 FAT 股東的機會。

We plan to use proceeds to deleverage the balance sheet and build new restaurants.

我們計劃利用所得款項來去槓桿化資產負債表並建造新餐廳。

We are also planning to refinance our Twin Peak securitization debt prior to an IPO or other transaction.

我們還計劃在首次公開發行或其他交易之前為我們的 Twin Peak 證券化債務進行再融資。

Looking to our other segments.

看看我們的其他細分市場。

In May, Round Table Pizza strengthened its presence in Texas with the opening of a second location in San Antonio.

五月，Round Table Pizza 在聖安東尼奧開設了第二家分店，加強了在德州的業務。

This development is part of a broader strategic partnership with Brame Brands, notably this new San Antonio location marks the beginning of Brame Brand's commitment to establish 40 Round Table Pizza locations across the state underscoring the substantial growth potential we see in this market.

這項開發是與Brame Brands 更廣泛戰略合作夥伴關係的一部分，值得注意的是，聖安東尼奧新店標誌著Brame Brand 致力於在全州建立40 家圓桌披薩店的承諾的開始，強調了我們在該市場看到的巨大成長潛力。

Our Fazoli's brand continues to gain momentum in Florida with the recent opening of our second Tampa location, bringing our total presence in the state to six restaurants.

隨著最近在坦帕開設第二家分店，我們的 Fazoli 品牌在佛羅裡達州的勢頭繼續增強，使我們在該州的餐廳總數達到六家。

We've also bolstered -- as always footprint in Arizona, launching our third location in the Greater Phoenix area with a new restaurant in Glendale.

我們也一如既往地擴大了在亞利桑那州的足跡，在大鳳凰城地區開設了第三家分店，並在格倫代爾開設了一家新餐廳。

This location featuring a fresh brand look is off to an incredibly strong start, breaking Fazoli's opening weekend sales records.

該店以全新的品牌外觀為特色，取得了令人難以置信的強勁開局，打破了 Fazoli 的首周末銷售記錄。

These strategic expansions reflect our ongoing commitment to grow in key markets and our confidence in the brand.

這些策略擴張反映了我們對關鍵市場成長的持續承諾以及我們對品牌的信心。

Co-branding also continues to be a key part of our strategy.

聯合品牌也仍然是我們策略的關鍵部分。

Following the debut of our first Fatburger and Round Table Pizza co-branded concept last year, we've seen remarkable interest in the pairing with over 50 new locations currently under development.

繼去年首次推出 Fatburger 和 Round Table Pizza 聯合品牌概念後，我們發現人們對與目前正在開發的 50 多家新店的搭配產生了濃厚的興趣。

The success of this model was evident from its launch in Texas.

該模型的成功從其在德克薩斯州的推出就可見一斑。

And building on this momentum, we're thrilled to announce our expansion into Utah.

在此勢頭的基礎上，我們很高興宣布將業務擴展到猶他州。

Our newly announced deal will bring 12 co-branded Fatburger and Round Table Pizza franchised restaurants in Utah over the next six years, with the first unit set to open in 2025.

我們新宣布的協議將在未來六年內在猶他州開設 12 家 Fatburger 和 Round Table Pizza 聯合品牌特許經營餐廳，第一家餐廳將於 2025 年開業。

Our co-branded model of Great American Cookies and Marble Slab Creamery also continues to thrive.

我們的 Great American Cookies 和 Marble Slab Creamery 聯合品牌模式也持續蓬勃發展。

Over the last several months, we have continued to secure our foothold in Georgia, where we currently operate over 50 locations.

過去幾個月，我們繼續鞏固在喬治亞州的立足點，目前我們在喬治亞州經營 50 多個地點。

Recently, the sister concepts opened four new locations in Georgia, namely Acworth, Bethlehem, Marietta, and Snowville.

最近，姊妹概念公司在喬治亞州開設了四個新地點，分別是阿克沃斯、伯利恆、瑪麗埃塔和斯諾維爾。

Additionally, a stand-alone Great American Cookies opened in Columbus, Georgia.

此外，一家獨立的 Great American Cookies 在喬治亞州哥倫布開業。

We continue to lean into strategic value offerings across our brands to drive customer engagement and traffic.

我們持續致力於跨品牌提供策略價值產品，以提高客戶參與度和流量。

At Fazoli's, we underscored the brand's long-standing value proposition during the July 4 holiday by offering $4 pasta dishes then relaunching a fan favorite limited time offer, Pizza Baked Spaghetti at $5.99. Both promotions reinforce our commitment to providing high-quality menu items at an affordable price point, a key pillar of the brand since its inception.

在 Fazoli's，我們在 7 月 4 日假期期間通過提供 4 美元的意大利麵菜餚來強調該品牌的長期價值主張，然後重新推出粉絲最喜歡的限時優惠，即 5.99 美元的披薩烤意大利麵。這兩項促銷活動都強化了我們以實惠的價格提供高品質菜單的承諾，這是該品牌自成立以來的關鍵支柱。

Similarly, Smokey Bones celebrated National Hamburger Day with an nostalgic promotion offering their signature cheeseburger platter for just $6.49 with the purchase of a beverage.

同樣，Smokey Bones 為慶祝全國漢堡日，推出了懷舊促銷活動，購買一杯飲料即可享受其招牌芝士漢堡拼盤，僅需 6.49 美元。

The same price as when the brand launched in 1999.

價格與品牌 1999 年推出時相同。

To celebrate National Ice Cream Day and Ice Cream month in July, Marble Slab Creamery offered $5 off their ice cream cakes and a free small cup of ice cream with the purchase of another small or large cup on nationalized cream day.

為了慶祝七月的國家冰淇淋日和冰淇淋月，Marble Slab Creamery 提供冰淇淋蛋糕 5 美元折扣，並在國家冰淇淋日購買另一小杯或大杯冰淇淋即可免費獲得一小杯冰淇淋。

And on that day, we saw same-store sales up 3.8% over strong comparables from last year.

當天，我們看到同店銷售額比去年同期成長了 3.8%。

Our brands continue to innovate and excite customers with new menu items and exciting partnerships.

我們的品牌不斷創新，透過新的菜單項目和令人興奮的合作夥伴關係來激發客戶的興趣。

Pretzelmaker debuted Cheetos, Pretzel bites as a limited time offering.

Pretzelmaker 首次推出奇多、椒鹽捲餅作為限時產品。

Fatburger and Buffalo's Express introduced a new collaboration with Frank's RedHot launching Nashville Hot Chicken Strips and Nashville Hot fries.

Fatburger and Buffalo's Express 與 Frank's RedHot 推出新合作，推出納許維爾熱雞條和納許維爾熱薯條。

And Hot Dog on a Stick announced its latest hand-stomped lemonade creation, Sour Patch Kids Watermelon lemonade.

Hot Dog on a Stick 宣布推出最新的手踩檸檬水產品：Sour Patch Kids 西瓜檸檬水。

These initiatives across our portfolio demonstrate our ongoing efforts to keep our offerings fresh engaging and aligned with current consumer preferences.

我們產品組合中的這些舉措表明我們不斷努力保持我們的產品具有新鮮感並符合當前消費者的喜好。

Nontraditional venues, such as airports, cruise lines, amusement parks, universities, and casinos represent a key area of growth.

機場、遊輪公司、遊樂園、大學和賭場等非傳統場所是成長的關鍵領域。

This type of expansion not only diversifies our revenue streams but also increases brand visibility in unique high-volume locations.

這種類型的擴張不僅使我們的收入來源多樣化，而且還提高了在獨特的高銷售地區的品牌知名度。

During the quarter, we opened a Round Table Pizza location at Stanford University in their student union and have further plans to build Round Table brand on campus in the coming months.

本季度，我們在史丹佛大學的學生會開設了圓桌披薩店，並計劃在未來幾個月內在校園內建立圓桌品牌。

In July, we also expanded our partnership with Royal Caribbean by opening our 15th location on their iconic ships, a Johnny Rockets on the newly launched Utopia of the Seas.

7 月，我們還擴大了與皇家加勒比的合作夥伴關係，在其標誌性遊輪上開設了第 15 個餐廳，即新推出的海洋烏托邦號上的約翰尼火箭號。

Moving on to our second strategic pillar, growth through acquisitions.

接下來是我們的第二個策略支柱，即透過收購實現成長。

We are assessing several new potential acquisitions that could add significant strategic value to our organization similar to how we targeted Smokey Bones to fuel growth at Twin Peaks and Nestlé Toll House Café by Chip to boost our manufacturing facilities utilization.

我們正在評估幾項新的潛在收購，這些收購可能會為我們的組織增加重大戰略價值，類似於我們瞄準Smokey Bones 來推動Twin Peaks 的成長，以及Nestlé Toll House Café by Chip 來提高我們的製造設施利用率。

We're also looking at other categories to round out our portfolio, such as salad, sandwich, or coffee brands.

我們也正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。

When evaluating acquisition targets, we must ensure that the brand is both scalable and synergistic within our existing platform and when possible, leverage our existing manufacturing capacity, which brings us to our third strategic priority, leveraging our Georgia-based manufacturing facility.

在評估收購目標時，我們必須確保品牌在我們現有的平台內具有可擴展性和協同性，並在可能的情況下利用我們現有的製造能力，這使我們的第三個戰略重點是利用我們位於喬治亞州的製造工廠。

Our manufacturing facility, which produces Pretzel mix and Cookie Dough for our portfolio brands demonstrated strong performance in Q2.

我們的製造工廠為我們的投資組合品牌生產椒鹽捲餅混合物和餅乾麵團，在第二季度表現強勁。

While sales remained relatively constant at $9.6 million for the quarter, the factory contributed $3.8 million to adjusted EBITDA, an increase of 9.3% over last year's quarter.

雖然本季銷售額相對穩定在 960 萬美元，但工廠為調整後 EBITDA 貢獻了 380 萬美元，比去年季度增長 9.3%。

The plant utilization has improved from 33% at acquisition nearly three years ago to its current 45%, should additional demand materialize beyond what we could currently absorb, a modest $1.5 million investment in additional equipment could double our capacity.

工廠利用率已從近三年前收購時的33% 提高到目前的45%，如果額外的需求超出我們目前的吸收能力，對額外設備進行150 萬美元的適度投資就可以使我們的產能翻倍。

We also have 3.5 acres of unused real estate on site that can be expanded upon.

我們還有 3.5 英畝未使用的場地可供擴建。

This presents a significant growth opportunity for our factory business.

這為我們的工廠業務提供了重大的成長機會。

To boost utilization, we have leveraged our portfolio of brands by enhancing our dessert offerings, selling cookies and other products made at the facility within our restaurants.

為了提高利用率，我們透過增強我們的甜點產品、銷售餅乾和餐廳內設施生產的其他產品來利用我們的品牌組合。

Recently, we added dessert items across the Fazoli's locations and have plans to complete the rollout in our remaining casual dining and polished casual segments in the future.

最近，我們在 Fazoli 門市中增加了甜點項目，並計劃未來在我們剩餘的休閒餐飲和精緻休閒領域完成推出。

FAT brand's foundation, I'd like to mention for a minute.

我想提一下FAT品牌的基礎。

I'd like to update you on the growth and work at the foundation.

我想向您介紹基金會的發展和工作的最新情況。

The foundation continues to make incredible strides with its grant giving.

基金會在贈款方面繼續取得令人難以置信的進步。

Through June, the foundation made 36 grants, which already has nearly surpassed the number of grants they were awarded in the full year of 2023, supporting many impactful nonprofit organizations.

截至 6 月，該基金會共發放了 36 筆贈款，幾乎超過了 2023 年全年的贈款數量，為許多有影響力的非營利組織提供了支持。

We are also honored to share FAT Brand Foundation recently gained recognition from the Los Angeles Business Journal at its Annual Nonprofit and Corporate Citizenship Awards.

我們也很榮幸與大家分享，FAT 品牌基金會最近獲得了《洛杉磯商業雜誌》年度非營利組織和企業公民獎的認可。

Jessica Wiederhorn, the Foundation's President and also founding member was named non-profit Executive of the Year in emerging category by the LA Business Journal.

基金會主席兼創始成員 Jessica Wiederhorn 被《洛杉磯商業雜誌》評為新興類別年度非營利主管。

To conclude my remarks, FAT Brands continues to position itself for significant growth.

最後，FAT Brands 繼續為自己的顯著成長做好準備。

Our business is built on delivering exceptional, authentic dining experiences across our portfolio, and we're uniquely positioned with the seasoned leadership team and a robust adaptable brand management platform that allows for efficient integration of new brands.

我們的業務建立在透過我們的產品組合提供卓越、真實的餐飲體驗的基礎上，我們擁有獨特的地位，擁有經驗豐富的領導團隊和強大的適應性強的品牌管理平台，可以有效地整合新品牌。

Our strong and expanding development pipeline promises sustained growth for years to come.

我們強大且不斷擴大的開發管道預計在未來幾年將持續成長。

We sincerely appreciate your participation today and your ongoing interest in FAT Brands.

我們衷心感謝您今天的參與以及您對 FAT 品牌的持續關注。

With that, I'd like to hand it over to Ken to discuss our financial highlights from the second quarter.

說到這裡，我想把它交給肯恩來討論我們第二季的財務亮點。

Thanks, Andy.

謝謝，安迪。

I'd like to now review our quarterly performance.

我現在想回顧一下我們的季度業績。

Total revenues increased 42.4% to $152 million driven by the acquisition of Smokey Bones in the fourth quarter of 2023 and revenues from new restaurant openings.

受 2023 年第四季收購 Smokey Bones 以及新餐廳開業帶來的營收推動，總營收成長 42.4% 至 1.52 億美元。

Costs and expenses increased $66.4 million or 75.2% in the second quarter.

第二季成本和費用增加了 6,640 萬美元，成長 75.2%。

Included in cost and expenses, general and administrative expense increased $19.6 million or 197.2% to $29.6 million from $9.9 million in the prior year period, primarily due to the Smokey Bones acquisition and the recognition of $12.7 million in employee retention tax credits during the second quarter of 2023, partially offset by the recognition of $2.1 million in employee retention tax credits during the second quarter of 2024.

在計入成本和費用後，一般和管理費用從去年同期的990 萬美元增加到2960 萬美元，增幅為1960 萬美元，增幅為197.2%，這主要是由於收購了Smokey Bones 以及第二季度確認了1,270 萬美元的員工保留稅收抵免2023 年的稅收抵免額被 2024 年第二季確認的 210 萬美元員工保留稅收抵免部分抵消。

Cost of restaurant and factory revenues increased to $100.1 million compared to $59.5 million in the prior year quarter, primarily due to the Smokey Bones acquisition and higher company-owned restaurant sales.

餐廳和工廠收入成本增加至 1.001 億美元，而去年同期為 5,950 萬美元，這主要是由於收購了 Smokey Bones 以及公司自有餐廳銷售額的增加。

Depreciation and amortization expense increased $3.2 million to $10.2 million from $7.1 million in the year-ago quarter.

折舊和攤提費用從去年同期的 710 萬美元增加到 1,020 萬美元，增加了 320 萬美元。

Again, primarily due to the Smokey Bones acquisition, along with depreciation of new company-owned restaurant property and equipment.

同樣，這主要是由於收購了 Smokey Bones，以及新公司擁有的餐廳財產和設備的折舊。

Advertising expense varies in relation to advertising revenues and increased to $14.7 million from $11.6 million in the year ago period.

廣告費用隨廣告收入的變化而變化，從去年同期的 1,160 萬美元增加到 1,470 萬美元。

Total other expense net for the second quarter of 2024 and 2023 was $34.8 million and $24.2 million, respectively, which is inclusive of interest expense of $34 million and $24.3 million, respectively.

2024 年和 2023 年第二季的其他費用淨額總額分別為 3,480 萬美元和 2,420 萬美元，其中分別包括 3,400 萬美元和 2,430 萬美元的利息費用。

Net loss was $39.4 million or $2.43 per diluted share, compared to a net loss of $7.1 million or $0.53 per diluted share in the prior year quarter.

淨虧損為 3,940 萬美元，即稀釋後每股虧損 2.43 美元，去年同期淨虧損為 710 萬美元，即稀釋後每股虧損 0.53 美元。

And on an as adjusted basis, our net loss was $30.9 million or $1.93 per diluted share, compared to net income of $3 million or $0.08 per diluted share in the prior year quarter.

在調整後的基礎上，我們的淨虧損為 3,090 萬美元，即稀釋後每股 1.93 美元，而去年同期的淨利潤為 300 萬美元，即稀釋後每股 0.08 美元。

And lastly, EBITDA was $6.8 million compared to $25.6 million in the second quarter of 2023.

最後，EBITDA 為 680 萬美元，而 2023 年第二季為 2,560 萬美元。

And adjusted EBITDA for the quarter was $15.7 million compared to $23.1 million in the year ago quarter.

本季調整後 EBITDA 為 1,570 萬美元，而去年同期為 2,310 萬美元。

And as Andy mentioned, we received employee retention tax credits of $12.7 million in the second quarter of 2023 versus $2.1 million in the second quarter of 2024, a difference of $10.6 million.

正如 Andy 所提到的，我們在 2023 年第二季獲得了 1,270 萬美元的員工保留稅收抵免，而 2024 年第二季為 210 萬美元，相差 1,060 萬美元。

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

那麼，凱莉，請打開提問線。

(Operator Instructions)

（操作員說明）

Joe Gomes, NOBLE Capital.

喬·戈麥斯，NOBLE Capital。

So somewhat of a similar theme with the first quarter, revenues were up nicely, but expenses were up even and more.

與第一季的主題有些相似，收入成長良好，但支出成長甚至更多。

And here in the second quarter, they grew even at a faster rate than they did in the first quarter.

在第二季度，它們的成長速度甚至比第一季還要快。

I understand part of that is due to the tax retention credits.

據我了解，部分原因是稅收保留抵免。

But when do we think we'll start to see that [flex] and where the revenue growth will exceed the expense growth on a quarterly basis?

但我們認為什麼時候我們會開始看到這種[彈性]以及季度收入成長將超過支出成長？

Sure.

當然。

I think you have to reconcile the difference in net loss or adjusted net loss from Q2, a year ago to Q2 2024.

我認為您必須協調一年前第二季與 2024 年第二季的淨虧損或調整後淨虧損之間的差異。

There's really five or six components.

其實有五、六個組件。

One of them is interest expense.

其中之一是利息支出。

One of them is the tax credits.

其中之一是稅收抵免。

One of them is depreciation and then you have some net income losses from the Smokey Bones acquisition and a little bit from Fazoli's and Round Table Pizza, where Round Table, we own some corporate stores that were sold to no longer have that income.

其中之一是折舊，然後你會因收購Smokey Bones而遭受一些淨收入損失，還有一點來自Fazoli's和Round Table Pizza，其中Round Table，我們擁有一些企業商店，但這些商店被出售後不再有收入。

And you put all that together and it gets you to that difference between the $32 million difference basically.

把所有這些放在一起，你基本上可以得到 3200 萬美元的差異。

As we see the refinancing of Twin Peaks and hopefully, the public company listing of Twin Peaks, that will peel some of that off of the FAT Brands platform that will also create an opportunity to raise equity and reduce interest expense in total.

正如我們所看到的 Twin Peaks 的再融資，以及希望 Twin Peaks 的上市公司上市，這將從 FAT Brands 平台上剝離出部分資金，這也將創造一個籌集股本和減少利息支出的機會。

And so that's going to be a key driver because Twin Peak sits at approximately $400 million of debt to reduce that debt with equity raise will substantially affect that number.

因此，這將成為一個關鍵驅動因素，因為 Twin Peak 的債務約為 4 億美元，透過股權融資來減少債務將大大影響這一數字。

The second thing is, of course, the pipeline of new store builds that adds somewhere between $6 million and $10 million a year of incremental royalties, depending on which brand and how many units get opened.

當然，第二件事是新店建設的管道，每年增加 600 萬至 1000 萬美元的增量特許權使用費，具體取決於開設的品牌和數量。

So I think that's -- those are the two things.

所以我認為這是兩件事。

And then finally, of course, legal expense has to end here somewhere, maybe 12 to 18 months from now, and that will be the final touch of it.

最後，當然，法律費用必須在某個地方結束，也許是從現在起 12 到 18 個月後，這將是最後的處理。

Okay.

好的。

Thanks.

謝謝。

But Andy, you talked about the new store development here.

但是安迪，你在這裡談到了新店的開發。

So in the second quarter, you had projected that you're going to open, I think it was 40-some-odd stores on the first quarter call, you project, you're going to open, I think 40-some-odd stores here in the second quarter.

所以在第二季度，你預計你將開業，我認為第一季度電話會議上有 40 多家商店，你預計，你將開業，我認為有 40 多家商店第二季度這裡有商店。

And obviously, we fell short of that.

顯然，我們沒有做到這一點。

You still seem to think you can come up to that 120-ish for the full year.

你似乎仍然認為全年可以達到 120 左右。

Anything in particular that has caused the rate of store openings to slow down from our initial expectations?

有什麼特別因素導致開店速度低於我們最初的預期嗎？

So there's a couple of things that contribute to it.

有幾件事促成了這一點。

One is that you just generally have franchisees dragging their feet just a little bit, just a little slower to get things done, whether that's financing or whatever that they're applying.

其一是，加盟商通常在完成工作時會稍微拖拖拉拉，稍微慢一點，無論是融資還是他們正在申請的任何東西。

But they are on track to open.

但他們正在按計劃開業。

I mean we have scheduled opening dates through the end of the year for those remaining 80-something stores, 75 stores and 20 or 30 of those are international, where they're very much on track to open in their multiunit repeat operators so they don't need a lot of assistance from corporate.

我的意思是，我們已經為剩下的80 多家商店、75 家商店和其中20 或30 家是國際商店安排了到今年年底的開業日期，他們非常有望在其多單元重複運營商中開業，因此他們不會不需要企業的太多幫助。

So we feel pretty good about these dates, but you never want to be in December opening new stores.

所以我們對這些日期感覺很好，但你永遠不想在 12 月開設新店。

So we really want to get them open as many as we can before Thanksgiving, and we have an awful lot scheduled.

因此，我們真的希望在感恩節之前盡可能多地開放它們，而且我們已經安排了很多。

So we feel pretty good about it.

所以我們對此感覺很好。

Okay.

好的。

And then one more for me, I'll jump back in queue.

然後再給我一個，我會插回隊列。

You talked about M&A and you still are assessing some opportunities.

您談到了併購，您仍在評估一些機會。

You mentioned the same thing in the first quarter call.

您在第一季電話會議中提到了同樣的事情。

Are these the same opportunities or new opportunities come about here?

這些是同樣的機會還是新的機會？

You have seen a little bit of ups and downs here recently in the restaurant industry.

最近，你已經看到了餐飲業的一些起伏。

I was wondering if there's been maybe an opening, so to speak, of people looking to come to somebody like you, a consolidator and be more open on price that maybe some of that has started to percolate.

我想知道是否有一個機會，可以這麼說，人們希望找到像你這樣的整合者，並且在價格上更加開放，也許其中一些已經開始滲透。

Definitely, the latter, we're seeing more deals than ever right now and certainly than we did last year, and we're seeing sellers with reasonable expectations.

當然是後者，我們現在看到的交易比以往任何時候都多，當然也比去年多，而且我們看到賣家有合理的期望。

And so I think that there's an opportunity to make acquisitions similar to the pricing around like Smokey Bones, where it was in the 3 to 4 times cash flow range versus stuff that -- where people are still trying to hold out for 7 to 10 times and it's just hard in this environment to justify that.

因此，我認為有機會進行類似於 Smokey Bones 等公司的定價的收購，其現金流量範圍為 3 至 4 倍，而人們仍試圖堅持 7 至 10 倍。

We want to see from a consumer trend standpoint, we want to see the election behind this, and the interest rate cut is behind us, and that would create some momentum I think, as well.

我們希望從消費者趨勢的角度來看，我們希望看到背後的選舉，降息已經過去，我認為這也會創造一些動力。

But I think from a pure M&A standpoint, there are opportunities out there.

但我認為，從純粹的併購角度來看，機會是存在的。

They are de-levering opportunities, meaning that we could add EBITDA and cash flow at a much lower rate than our leverage rate today.

它們是去槓桿化的機會，這意味著我們可以以比今天的槓桿率低得多的速度增加 EBITDA 和現金流。

So that's an interesting opportunity for us as a way to de-lever the balance sheet and add to our scale.

因此，這對我們來說是一個有趣的機會，可以作為去槓桿化資產負債表並擴大我們規模的一種方式。

Alton Stump, Loop Capital.

奧爾頓·斯坦普（Alton Stump），Loop Capital。

I just want to ask first off on the same-store sales being down only 1.6%, held flat on a two set basis sequentially versus the first quarter.

我首先想問的是，同店銷售額僅下降了 1.6%，與第一季相比，兩套銷售額連續持平。

I'm sure you guys have all read, all of the negative news out there and for those that has come out with earnings, it probably going to be one, if not the only one out there that actually kept to your stacks unchanged in 2Q versus the first quarter.

我相信你們都讀過，所有的負面消息，對於那些已經公佈盈利的人來說，這可能是一個，如果不是唯一一個在第二季度真正保持你的籌碼不變的消息與第一季度相比。

Clearly, you guys own, obviously, almost 20 different concepts.

顯然，你們擁有近 20 個不同的概念。

You've got a lot of different things going on for each concept.

每個概念都會發生很多不同的事情。

But was there any handful of sort of key outperformers in your portfolio that you think enabled you to hold that to your stack trend flat in what was obviously a very challenging quarter for the overall quick-service industry.

但是，您的投資組合中是否有一些關鍵的表現出色的公司，您認為它們使您能夠在整個快速服務行業顯然是一個非常具有挑戰性的季度中保持堆疊趨勢平穩。

Yeah.

是的。

The burger segment has been very solid.

漢堡市場一直非常穩定。

Fast Casual segment has been very solid.

快速休閒細分市場非常穩固。

And the snack segment has been very solid as well.

零食市場也非常穩定。

Where you see -- where we've seen -- what other people have seen, which is on the QSR side of things, your traffic is off and your sales are off, your topline sales are off, we have company-owned stores in that bucket.

你所看到的——我們所看到的——其他人所看到的，即快餐方面，你的流量下降了，你的銷售額下降了，你的營收下降了，我們在那個桶。

So it affects you harder and that consumer just doesn't have anywhere to go.

所以它對你的影響更大，而且消費者無處可去。

And so you've got to focus on value and try to focus on frequency and make sure that you're driving profitable value opportunities, you're not cannibalizing sales and trying to drive traffic where you're actually losing more money.

因此，你必須專注於價值並嘗試專注於頻率，並確保你正在推動有利可圖的價值機會，而不是蠶食銷售並試圖增加流量，而實際上你會損失更多的錢。

So we've been focused on that, but we've definitely seen it there.

所以我們一直關注這一點，但我們確實在那裡看到了它。

So it's kind of interesting to see how snack brands and how the fast casual brands where burgers and their average checks can be in the low $20 are doing pretty well, and you've got other pain thresholds where it's a higher pushback.

因此，看看零食品牌和快餐品牌（漢堡的平均價格可以在 20 美元以下）表現得相當不錯，而且還有其他更高的阻力，這很有趣。

We've also seen, for example, our Ponderosa and Bonanza Steakhouse brands have just consistently been up mid- to high-single digits.

例如，我們也看到，我們的 Ponderosa 和 Bonanza Steakhouse 品牌一直保持著中高個位數的成長。

And I'm sure that's a value proposition of an all you can eat steak and all you can eat buffet at a pretty good value price.

我確信這是一個非常超值的自助牛排和自助餐的價值主張。

So to see those up strongly is nice.

所以看到這些強勁的表現是很好的。

We've seen in the past casual segment, same-store sales are off just a little bit and a lot less than they were off as we started the year, so we've had a very good recovery in that -- in those segments or that segment.

我們在過去的休閒細分市場中看到，同店銷售額僅略有下降，而且比年初的下降幅度要小得多，因此我們在這些細分市場中取得了非常好的復甦或那段。

And we anticipate getting better and better after we get out of the dog days of summer here.

我們預計，在度過三伏天后，我們會變得越來越好。

There's not a lot of sports that drive people to sports bars in the -- over the next few weeks, and then we'll be back into football and everything should be great again.

在接下來的幾週內，沒有太多的運動會吸引人們去運動酒吧，然後我們將重新回到足球場，一切都會再次變得美好。

The Olympics don't actually drive people.

奧運會實際上並不能帶動人們。

People don't go to the sports bars to watch the Olympics as much as they do it at home and it's also the time change.

人們不像在家裡那樣去運動酒吧看奧運會，而且時間也變了。

So I think that's the solution.

所以我認為這就是解決方案。

But we do -- we are pretty optimistic about the second half of the year now for the polished casual segment.

但我們確實如此——我們對今年下半年的精緻休閒細分市場非常樂觀。

Great.

偉大的。

That's great color.

那顏色真棒。

Thank you for all that.

謝謝你所做的一切。

And then I guess just one other follow-up and I'll hop back in the queue, but you obviously are just now underway with your first conversion of Smokey Bones to a Twin Peak.

然後我想還有一個後續行動，我會跳回到隊列中，但顯然你現在剛開始將 Smokey Bones 第一次轉換為 Twin Peak。

So it's all very early.

所以這一切還很早。

I actually understand.

我其實明白了。

But how has that gone so far?

但到目前為止進展如何？

Have you learned anything yet that could help you as you look to accelerate that conversion process, as you mentioned, not just over the course of the back half of this year but into the next couple of year period?

正如您所提到的，您是否學到了任何可以幫助您加快轉換過程的東西，不僅是在今年下半年，而且是在接下來的幾年內？

Yeah.

是的。

Well, Joe Hummel, our Twin Peak CEO and his team are pros at conversions of second-generation restaurants they say, probably 75% of the Twin Peaks restaurants that existed today are second-generation restaurant units.

嗯，我們的 Twin Peaks 執行長 Joe Hummel 和他的團隊是第二代餐廳改造的專家，他們說，今天存在的 Twin Peaks 餐廳中可能有 75% 是第二代餐廳單位。

So very, very focused on how to do it quickly and efficiently.

所以非常非常關注如何快速有效地完成它。

This Lakeland, Florida, location will be up and running in under nine months.

這個位於佛羅裡達州萊克蘭的工廠將在九個月內建成並投入運作。

So we're very happy with that.

所以我們對此非常滿意。

When we bought Smokey Bones in Q4 of last year, our franchisee base and even for corporate stores, we had already picked out most of the 2024 new stores to open, franchisees have already purchased land or building buildings or lease new locations.

當我們去年第四季收購Smokey Bones時，我們的加盟商基地甚至企業店，我們已經挑選了大部分2024年新店開業，加盟商已經購買了土地或建造建築物或租賃新地點。

Same thing with corporate.

企業也是如此。

We had three or four company-owned stores under construction or development.

我們有三到四家公司自有商店正在建設或開發中。

So the timing of the conversions of the Smokey Bones is really a '25 and '26 event, just because '24 everybody already had all -- they played full with all the stores they could open.

因此，Smokey Bones 的轉型時機實際上是 25 和 26 年間的事件，因為 24 年間每個人都已經擁有了一切——他們充分利用了他們可以開設的所有商店。

And remember, these stores take up a lot of money to open.

請記住，這些商店的開張需要大量資金。

It can be anywhere from $3.5 million, $4 million on a conversion of a store to $7.5 million to build a brand-new store.

改造商店的費用為 350 萬美元、400 萬美元，到建造全新商店的費用為 750 萬美元。

And so you can only ask a franchisee to write so many checks at a time in a given year, and they planned their cash flow for that purpose and same with corporate.

因此，你只能要求特許經營商在某一年一次寫這麼多張支票，並且他們為此目的計劃現金流，與公司相同。

So we feel good about it.

所以我們對此感覺良好。

We're excited for the momentum.

我們對這種勢頭感到興奮。

When you see the brands that get the best valuations and the biggest part of the multiple expansion here right now, it's brands with high unit growth and certainly Twin Peaks has high unit growth planned for the next three years.

當你看到現在獲得最高估值和多重擴張的最大部分的品牌時，這些品牌的銷售成長率很高，當然，Twin Peaks 也計劃在未來三年實現較高的銷售成長。

So does FAT Brands having 2,300 restaurants open, another 1,100 in the pipeline, paid for by franchisees and on the schedule to build them.

FAT Brands 也是如此，目前已開業 2,300 家餐廳，另有 1,100 家餐廳正在籌備中，由特許經營商支付費用並按計劃建造餐廳。

So we really feel like being a franchise, we're having high unit growth executing on that unit growth should really see some of the stuff get behind us here.

所以我們真的覺得自己是一個特許經營商，我們在單位增長上執行了很高的單位增長，應該真正看到一些東西在我們身後。

And of course, as we refinance our different securitization transactions over the next 24 months, we think that we'll still see savings there as well.

當然，當我們在未來 24 個月內為不同的證券化交易進行再融資時，我們認為我們仍然會看到節省。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference over to Andy for any closing remarks.

我想將會議轉交給安迪發表閉幕詞。

I just want to thank all of you for joining the FAT Brand's conference today, and we look forward to updating you further on our Q3 earnings call and hopefully some exciting stuff to talk about at that time.

我只是想感謝大家今天參加 FAT 品牌的會議，我們期待在第三季財報電話會議上進一步向您通報最新情況，並希望屆時能談論一些令人興奮的內容。

Thank you very much, operator.

非常感謝您，接線生。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。