FAT Brands Inc (FATBB) 2024 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the FAT Brands Inc., fourth-quarter 2024 earnings conference call.

女士們、先生們，午安。感謝您的支持。歡迎參加 FAT Brands Inc. 2024 年第四季財報電話會議。

(Operator Instructions) Please note that this conference is being recorded, today, February 27, 2025.

（操作員指示）請注意，本次會議將於今天（2025 年 2 月 27 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.

參加電話會議的有 FAT Brands 董事會主席 Andy Wiederhorn；以及聯合執行長兼財務長 Ken Kuick。

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

今天下午，該公司公開發布了2024年第三季財務業績。

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 contains additional details about the third quarter.

請參閱收益報告和收益補充文件，均可在公司網站 www.fatbrands.com 的投資者部分找到。每個都包含有關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.

但是，在我們開始之前，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。

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.

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聲明。

For a more detailed discussion of the risk that could impact future operating results and financial conditions, please see today's earnings release and recent SEC filing.

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。

During today's call, the company will also discuss non-GAAP financial measures, which it believes can be useful in evaluating its 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.

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，該公司認為這些指標有助於評估其表現。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。

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

現在，我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. Thank you, all, for joining us today.

謝謝您，接線生。謝謝大家今天參加我們的活動。

As a Los Angeles-based company, our thoughts are, first and foremost, with those affected by the devastating fires. Before I begin today, I want to thank our team members, franchisees, and employees. Their dedication to our business, to each other, and to our communities, during this time, exemplifies the true spirit of FAT Brands.

作為一家總部位於洛杉磯的公司，我們首先關心的是那些受到毀滅性火災影響的人們。在今天開始之前，我想感謝我們的團隊成員、加盟商和員工。在此期間，他們對我們的業務、對彼此以及對我們社區的奉獻體現了 FAT Brands 的真正精神。

We kicked off 2025 with a major milestone: the spin-out of Twin Hospitality Group, Inc., which operates our Twin Peaks and Smokey Bones restaurants. In January, we distributed 5% of Twin Hospitality's Class A common stock to shareholders, while retaining the remaining shares. This amounts to approximately a $50 million dividend, paid to our FAT Brands shareholders, of Twin Hospitality shares.

我們以一個重要的里程碑拉開了 2025 年的序幕：Twin Hospitality Group, Inc. 的分拆，該公司經營著我們的 Twin Peaks 和 Smokey Bones 餐廳。一月份，我們向股東分發了 Twin Hospitality 5% 的 A 類普通股，同時保留剩餘股份。這相當於向我們的 FAT Brands 股東支付約 5,000 萬美元的 Twin Hospitality 股利。

Twin Hospitality, now, trades separately on the Nasdaq, under the ticker TWNP. The public listing of Twin Hospitality creates an opportunity for shareholders to directly participate in the growth and success of the Twin Peaks brand.

目前，Twin Hospitality 在納斯達克單獨交易，股票代碼為 TWNP。Twin Hospitality 的公開上市為股東創造了直接參與 Twin Peaks 品牌成長和成功的機會。

This strategic move enhances transparency and enables the market to better appreciate the distinct value of Twin Peaks. Furthermore, it provides Twin Peaks additional currency to sustain and accelerate its robust growth.

這項策略性舉措提高了透明度，使市場能夠更好地認識到 Twin Peaks 的獨特價值。此外，它還為 Twin Peaks 提供了額外的資金來維持和加速其強勁成長。

If you reference the original $12 per share IPO price of FAT Brands in 2017 and adjust the price for all the ordinary and special dividends paid to FAT Brands shareholders, the current basis in FAT Brands' stock is $2.74. In other words, FAT has paid more than $9 in cumulative dividends.

如果參考 FAT Brands 2017 年每股 12 美元的原始 IPO 價格，並調整支付給 FAT Brands 股東的所有普通股和特別股息的價格，則 FAT Brands 股票的當前基礎為 2.74 美元。換句話說，FAT 已支付超過 9 美元的累積股息。

The current trading price of FAT reflects an approximately $2.50 per share adjustment for the dividend of the TWNP shares to establish the listing of Twin Hospitality Group.

FAT 的當前交易價格反映了 TWNP 股票股息每股約 2.50 美元的調整，以建立 Twin Hospitality Group 的上市。

Following this call, we invite you to listen to the Twin Hospitality inaugural call at 5:15 Eastern Time, led by CEO Joe Hummel and CFO Ken Kuick. The details are contained within their earnings release, also issued this afternoon.

本次電話會議結束後，我們邀請您收聽美國東部時間 5:15 舉行的 Twin Hospitality 首次電話會議，由執行長 Joe Hummel 和財務長 Ken Kuick 主持。詳細資訊包含在他們今天下午發布的收益報告中。

As noted in our public filings for Twin Hospitality Group, regarding our bond refinancing that took place in Q4 of last year, we are committed to raising equity between hospitality and reducing debt in 2025 by $75 million or more, including a minimum of $25 million by late April. We believe we are on track to fulfill that commitment.

正如我們在 Twin Hospitality Group 的公開文件中所述，關於我們去年第四季度進行的債券再融資，我們致力於在 2025 年提高酒店業之間的股權並減少 7500 萬美元或更多的債務，其中包括在 4 月底前至少減少 2500 萬美元。我們相信我們正在履行這項承諾。

As part of that same debt reduction obligation, we agreed not to pay the FAT common dividend until that $25 million is paid. So we expect to complete that over the next 60 days and declare and pay the Q1 dividend, as usual, at that time.

作為相同債務減免義務的一部分，我們同意在支付 2500 萬美元之前不支付 FAT 普通股股息。因此，我們預計將在未來 60 天內完成該任務，並像往常一樣宣布和支付第一季股息。

A key driver for FAT Brands, in 2025, is unlocking the tremendous amount of value created at Twin Hospitality, with TWNP operating as a separate independent public company.

2025 年，FAT Brands 的一個關鍵驅動力是釋放 Twin Hospitality 創造的巨大價值，TWNP 將作為一家獨立的上市公司運作。

And while market prices may fluctuate at the time of the spinoff listing, FAT's shares in TWMP were valued at more than $900 million. This is in addition to shedding over $400 million of Twin Hospitality's debt to the spinoff entity from FAT.

儘管分拆上市時市場價格可能會波動，但 FAT 在 TWMP 的持股價值超過 9 億美元。除此之外，Twin Hospitality 還將向 FAT 的分拆實體償還其超過 4 億美元的債務。

FAT will continue to consolidate the Twin Hospitality financials for the foreseeable future because of our ownership and control percentages. Nonetheless, we will break out this information so that you can see the clear unlocking of value at FAT.

由於我們的所有權和控制權百分比，FAT 將在可預見的未來繼續合併 Twin Hospitality 的財務狀況。儘管如此，我們還是會分解這些訊息，以便您可以看到 FAT 的價值清晰釋放。

So another way to summarize the balance sheet, post spinoff, is that FAT, now, owns the remaining 16 brands and their cash flow, plus all of its fully diluted 85% of the TWNP stock and has net debt of approximately $850 million, plus approximately $150 million in preferred stock.

因此，總結分拆後資產負債表的另一種方法是，FAT 現在擁有剩餘的 16 個品牌及其現金流，加上其全部完全稀釋的 85% TWNP 股票，淨債務約為 8.5 億美元，外加約 1.5 億美元的優先股。

On another note, we are also looking to refinance our remaining three securitization silos, as the market permits. Perhaps most or all of those in the second half of 2025.

另一方面，如果市場允許，我們也希望為剩餘的三個證券化項目進行再融資。或許其中大部分或全部將在 2025 年下半年實現。

Now, turning to our fourth-quarter results, which Ken will dive into in more detail, there were 13 weeks in the fourth quarter of 2024 and 14 weeks in the fourth quarter of 2023.

現在，談談我們的第四季業績，肯將對此進行更詳細的介紹，2024 年第四季有 13 週，2023 年第四季有 14 週。

Total revenue decreased 8.4% to $145.3 million compared to $158.6 million in the prior year quarter, as a result of the incremental operating week in the prior year quarter. Our system-wide sales were $580.2 million for the quarter, representing a 7.4% decrease from the last year's quarter. Again, due to the incremental operating week last year.

由於去年同期營業週數增加，總營收為 1.453 億美元，較去年同期的 1.586 億美元下降 8.4%。本季我們的全系統銷售額為 5.802 億美元，比去年同期下降 7.4%。再次，由於去年營運週數增加。

To put this in perspective, that one less week equals about $45 million to $50 million of sales and $2.5 to $3 million of royalties and another $3 million to $5 million of adjusted store-level EBITDA.

從這個角度來看，少一周就相當於損失了約 4500 萬至 5000 萬美元的銷售額、250 萬至 300 萬美元的版稅以及 300 萬至 500 萬美元的調整後門店級 EBITDA。

So there's quite a lot of noise in our numbers because of that one week -- by one-week adjustment. And, also, as we convert the Smokey Bones stores and/or close a few of the underperforming units that won't make the conversion list.

因此，由於那一週的調整，我們的數字中存在著許多噪音。而且，我們也會轉換 Smokey Bones 商店和/或關閉一些不在轉換名單上的表現不佳的單位。

We hope that this noise can be eliminated in 2025 so it will be a very clear line of sight for both TWMP and FAT, going forward, in 2026.

我們希望這種噪音能在 2025 年消除，這樣 TWMP 和 FAT 在 2026 年就能有非常清晰的視線。

We ended 2024 with total revenue increasing 23.4% to $592.7 million and system-wide sales increasing 3.1% to $2.4 billion.

截至 2024 年，我們的總營收成長 23.4%，達到 5.927 億美元，全系統銷售額成長 3.1%，達到 24 億美元。

As a reminder, we are focused on three core strategic initiatives that drive our success. First, generating organic growth across our existing brand portfolios, 1,000-plus new unit pipeline. Second, evaluating strategic acquisitions that could complement and strengthen our portfolio. And, third, expanding manufacturing capabilities at our Georgia facility, particularly in cookie dough and dry mix production.

提醒一下，我們專注於推動我們成功的三大核心策略舉措。首先，在我們現有的品牌組合中實現有機成長，超過 1,000 個新單位。其次，評估可以補充和加強我們投資組合的策略性收購。第三，擴大我們喬治亞州工廠的生產能力，特別是餅乾麵團和乾混料的生產能力。

Turning, first, to our organic growth initiatives. Throughout 2024, we opened 92 new restaurants. This year, we plan to open over 100 new locations, having already opened 17 units a, year to date.

首先談談我們的有機成長計劃。2024年全年，我們開設了92家新餐廳。今年，我們計劃開設 100 多家新店，今年迄今已開設了 17 家新店。

We anticipate strong organic growth across our portfolio in 2025. In particular, with Great American Cookies and Marble Slab Creamery, Fatburger and Buffalo's Express, Round Table Pizza and Fazoli's. This growth trajectory is further supported by our robust Twin Peaks' new store development pipeline.

我們預計 2025 年我們的投資組合將實現強勁的有機成長。特別是 Great American Cookies 和 Marble Slab Creamery、Fatburger 和 Buffalo’s Express、Round Table Pizza 和 Fazoli’s。我們強勁的 Twin Peaks 新店開發管道進一步支持了這一成長軌跡。

Our current development pipeline consists of signed agreements for approximately 1,000 additional locations, which includes over 250 units that were signed in 2024. Once these units are opened, we expect them to generate approximately $50 million in incremental annual adjusted EBITDA, which will naturally strengthen our balance sheet and reduce our leverage.

我們目前的開發項目包括已簽署的約 1,000 個額外地點的協議，其中包括 2024 年簽署的 250 多個單位。一旦這些單位投入運營，我們預計它們將產生約 5000 萬美元的年度增量調整後 EBITDA，這自然會增強我們的資產負債表並降低我們的槓桿率。

This robust development pipeline demonstrates both strong consumer demand for our brands and the significant growth opportunities provided into our franchisee base.

這個強勁的發展管道既顯示了消費者對我們品牌的強勁需求，也顯示了我們特許經營商群體的巨大成長機會。

Co-branding also continues to be a key driver of our growth strategy, as seen by the success of multiple brand pairings across our portfolio. Great American Cookies and Marble Slab Creamery has been a standout example, growing to over 160 co-branded locations since 2014, including 15 locations opening in 2024 and approximately 15 projected for this year.

聯合品牌也持續成為我們成長策略的關鍵驅動力，這一點從我們產品組合中多個品牌組合的成功就可以看出。Great American Cookies 和 Marble Slab Creamery 就是一個傑出的例子，自 2014 年以來，聯合品牌門市數量已超過 160 家，其中包括 2024 年開業的 15 家門市和預計今年開業的約 15 家門市。

Co-branded locations typically generate 10% to 20% higher incremental sales compared to single-brand units. These compelling unit economics continue to attract franchisees and drive expansion.

與單一品牌門市相比，聯合品牌門市的銷售額增量通常可高出 10% 至 20%。這些引人注目的單位經濟效益繼續吸引特許經營者並推動擴張。

Building on our co-branding success, we're looking to further lean into this strategy in 2025. To kick off the year, we opened a tri-branded model of Great American cookies, Marble Slab Creamery, and Pretzelmaker in the Dallas area. Similarly, we are set to open several more Fatburger, Buffalo's Express, and Hot Dog on a Stick locations, in addition to Fatburger and Round Table Pizzas this year.

基於我們聯合品牌的成功，我們希望在 2025 年進一步推行這項策略。為了迎接新的一年，我們在達拉斯地區開設了 Great American cookies、Marble Slab Creamery 和 Pretzelmaker 三品牌模式。同樣，除了 Fatburger 和 Round Table Pizzas 之外，我們今年還將開設更多 Fatburger、Buffalo's Express 和 Hot Dog on a Stick 商店。

The international appeal of our brands is especially evident with Johnny Rockets, where international locations, now, represent over 55% of the brand's global footprint. In 2024 alone, we opened 11 new international locations across multiple markets: two in Chile; two in Bali, Indonesia; four in Mexico; two in Brazil; and a ghost kitchen in the United Arab Emirates.

我們的品牌的國際吸引力在 Johnny Rockets 身上體現得尤為明顯，目前，國際門市已佔該品牌全球業務的 55% 以上。光是 2024 年，我們就在多個市場開設了 11 個新的國際門市：智利有兩家；印尼峇裡島有兩處；墨西哥有 4 處；巴西有兩家；以及阿拉伯聯合大公國的一個幽靈廚房。

Our presence continues to grow in key international markets, with over 40 locations, now, operating in Brazil and nearly 25 in Mexico, demonstrating the strength of our international expansion strategy.

我們的業務在主要國際市場上持續成長，目前在巴西擁有 40 多個分支機構，在墨西哥擁有近 25 個分支機構，展現了我們國際擴張策略的實力。

Additionally, we continue to see significant opportunities in non-traditional venues. A prime example is the recent opening of Hurricane Grill & Wings at the Six Flags Great Escape Lodge in Lake George, New York -- our first theme park location for the brand.

此外，我們繼續看到非傳統場所的巨大機會。一個典型的例子是最近在紐約喬治湖六旗大逃亡旅館開設的颶風燒烤和雞翅餐廳——這是我們品牌的第一個主題樂園。

Johnny Rockets also continued to grow across non-traditional venues, opening at the Soaring Eagle Casino & Resort in Mount Pleasant, Michigan.

Johnny Rockets 也繼續在非傳統場所擴張，在密西根州芒特普萊森特的 Soaring Eagle Casino & Resort 開業。

We believe these non-traditional venues represent a significant growth avenue, allowing us to reach new customers while leveraging existing infrastructure and foot traffic.

我們相信這些非傳統場所代表著一條重要的成長途徑，使我們能夠利用現有的基礎設施和人流來吸引新客戶。

I'd like to, also, address our renewed focus on synergies and cost reductions. We are continuing to reduce costs, as we separate out Twin Hospitality Group from the rest of the brands at FAT, taking essentially half of our 200 corporate stores and spinning them off with Twin Hospitality. Meaning: the corporate stores at Twin Peaks and the Smokey Bones locations.

我還想談談我們對協同效應和降低成本的重新關注。我們正在繼續降低成本，將 Twin Hospitality Group 與 FAT 的其他品牌分離，將我們 200 家公司門市中的一半與 Twin Hospitality 一起剝離出來。意義：位於 Twin Peaks 和 Smokey Bones 地點的公司商店。

We plan to refranchise, additionally, our 57 company-owned Fazoli's locations, leaving us with approximately 33 Hotdog on a Stick locations out of our 2,300 total locations, or 2,125, if you exclude Twin Peaks and Smokey Bones. This will bring us back to being almost 100%-franchised.

此外，我們還計劃重新特許經營我們公司所有的 57 家 Fazoli's 餐廳，這樣，我們的總餐廳總數就剩下 33 家 Hotdog on a Stick 餐廳，如果不包括 Twin Peaks 和 Smokey Bones，則剩下 2,125 家。這將使我們恢復到幾乎 100% 特許經營的狀態。

If you look at our supplement filed on January 13 -- and it's in the Investor Section, on our website -- you will see on pages 11 and 12, the third-party valuation of all of our brands, less our debt, and given various assumptions. This supplement gives a good roadmap to value creation and our strategy to unlock the same, which is clearly our focus, today.

如果您查看我們 1 月 13 日提交的補充文件（它位於我們網站的「投資者」部分），您會在第 11 頁和第 12 頁看到我們所有品牌的第三方估值，減去我們的債務，並給出了各種假設。該補充資料為價值創造和我們解鎖價值的策略提供了良好的路線圖，這顯然是我們今天的重點。

Now, turning to our growth-by-acquisitions strategy. Our recent transactions have been highly strategic, creating multiple avenues for value creation.

現在，我們來談談我們的收購成長策略。我們最近的交易具有高度的策略性，為創造價值創造了多種途徑。

A prime example is our acquisition of Nestle Toll House Café by Chip, about 3 years ago. This transaction was particularly compelling as it allowed us to convert these units to Great American Cookies locations, effectively growing our cookie footprint, while simultaneously increasing production volume in our manufacturing facility.

一個典型的例子就是我們大約三年前透過 Chip 收購雀巢 Toll House Café。這次交易特別引人注目，因為它使我們能夠將這些單位轉變為 Great American Cookies 地點，有效地擴大我們的餅乾足跡，同時增加我們製造工廠的生產量。

Similarly, we bought Smokey Bones, in late 2023, to help fuel Twin Peaks' growth, which will allow us to convert about 30 of the Smoky Bones locations into Twin Peaks.

同樣，我們在 2023 年底收購了 Smokey Bones，以推動 Twin Peaks 的發展，這將使我們能夠將大約 30 家 Smoky Bones 門市轉變為 Twin Peaks。

This dual benefit illustrates our approach to acquisitions. We look for opportunities that not only expand our restaurant portfolio but also drive incremental value through our manufacturing capabilities. Essentially, getting two bites at the apple.

這種雙重好處體現了我們的收購方式。我們尋找的機會不僅可以擴大我們的餐廳組合，還可以透過我們的製造能力推動增量價值。本質上，就是對蘋果進行兩次嘗試。

Looking ahead, our acquisition strategy remains focused on opportunities that are synergistic with our existing portfolio. We're especially interested in concepts that could leverage our manufacturing capabilities, such as additional cookie concepts that would utilize our cookie dough or pretzel mix operation.

展望未來，我們的收購策略仍專注於與我們現有投資組合產生協同效應的機會。我們對能夠利用我們的製造能力的概念特別感興趣，例如可以利用我們的餅乾麵團或椒鹽脆餅混合操作的其他餅乾概念。

However, we maintain strict discipline in our approach. And we're not interested in turnaround situations. Of which, we have seen many, lately.

然而，我們的做法是嚴格自律的。我們對扭轉局面的情況不感興趣。最近，我們看到了許多這樣的情況。

Turning to our manufacturing operations. We currently generate approximately $38 million in annual sales from our franchisees through our Georgia facility, with a profit of about $15 million, representing a 40% margin.

轉向我們的製造業務。目前，我們透過喬治亞州的工廠從特許經營商獲得約 3800 萬美元的年銷售額，利潤約為 1500 萬美元，利潤率為 40%。

This is a win-win situation, as our franchisees buy cookie dough and pretzel mix at a below-market price from us. And we benefit from this high-margin revenue stream.

這是一個雙贏的局面，因為我們的加盟商以低於市場的價格從我們這裡購買曲奇麵團和椒鹽脆餅混合物。我們從這個高利潤的收入流中受益。

Our manufacturing facility presents significant growth potential -- currently operating at only 40% capacity. We have substantial room for expansion. The facility spans four acres and we are only utilizing about half an acre. We can also increase production capacity through modest equipment upgrades within the existing facility, when needed.

我們的製造工廠具有巨大的成長潛力—目前的產能僅為 40%。我們有相當大的擴展空間。該設施佔地四英畝，而我們僅利用了約半英畝。必要時，我們還可以透過對現有設施內的設備進行適度升級來提高生產能力。

Our near-term goal is to increase utilization to 60% to 70%, which would significantly enhance the facility's value. Ultimately, this asset could provide an opportunity to reduce our leverage through a potential sale. But, for now, we're focused on optimizing its operations and capturing the available growth opportunity.

我們的近期目標是將利用率提高到 60% 至 70%，這將顯著提高設施的價值。最終，該資產可以透過潛在的出售來提供降低我們槓桿率的機會。但目前，我們專注於優化營運並抓住可用的成長機會。

Before concluding, I'd like to share an update on the FAT Brands Foundation.

在結束之前，我想分享一下 FAT Brands Foundation 的最新動態。

Since the Fat Brands Foundation commenced its giving in 2023, the organization continues to further cement, itself, as an emerging nonprofit leader. In one year, the foundation increased its giving by 36%, providing approximately $325,000 in grants.

自 2023 年 Fat Brands Foundation 開始捐贈以來，該組織不斷鞏固其作為新興非營利組織領導者的地位。一年之內，基金會的捐贈金額增加了 36%，提供了約 32.5 萬美元的補助金。

The foundation also provided 27 more grants to deserving nonprofits across the US, an increase of 59% from 2023, for a total of 70 grants in 2024 -- across 17 states, plus Washington DC.

該基金會還向美國各地值得幫助的非營利組織提供了 27 筆贈款，比 2023 年增加了 59%，2024 年的贈款總額達到 70 筆，涵蓋 17 個州和華盛頓特區。

Our commitment to community support also extends to crisis response, as demonstrated during the recent LA wildfires. Through Fatburger's food truck, the Fat Mobile, we provided 10,000 meals to first-responders sites and shelters. While Round Table Pizza offered free personal cheese pizzas to first responders, at over 50 Los Angeles area locations. And Hotdog on a Stick handed out free lemonade at a fundraising event, at the Santa Monica Pier.

我們對社區支持的承諾也延伸到危機應對，正如最近洛杉磯山火所證明的那樣。透過 Fatburger 的餐車 Fat Mobile，我們為急救站和避難所提供了 10,000 份餐點。而 Round Table Pizza 在洛杉磯地區超過 50 家門市則為急救人員提供免費的個人起司披薩。Hotdog on a Stick 在聖莫尼卡碼頭的一場募款活動中免費發放檸檬水。

These initiatives particularly resonated in Los Angeles, where many of our brands have their roots.

這些舉措在洛杉磯引起了特別大的共鳴，我們的許多品牌都起源於此。

The combination of immediate crisis-response capabilities and long-term community development, through our foundation's work, demonstrates our ongoing commitment to making meaningful contributions to the communities we serve.

透過基金會的工作，我們將即時危機應變能力與長期社區發展相結合，體現了我們持續致力於為我們服務的社區做出有意義的貢獻。

The strong support from both FAT Brand's corporate and our franchisees shows how deeply embedded community engagement is in our company culture.

FAT Brand 公司和我們的特許經營商的大力支持表明社區參與在我們的公司文化中根深蒂固。

In conclusion, 2025 is off to an exciting start, with a successful launch of Twin Hospitality Group as a standalone public company. As we look ahead, our primary focus for 2025 is [deleveraging] our balance sheet, while continuing to execute on our robust pipeline of organic growth opportunities.

總而言之，2025 年是一個令人興奮的開始，Twin Hospitality Group 成功成立為獨立的上市公司。展望未來，2025 年我們的主要重點是[去槓桿] 我們的資產負債表，同時繼續執行我們強勁的有機成長機會管道。

The energy momentum I see across our organization makes me incredibly optimistic about FAT Brand's future. And I look forward to updating you on our progress in the coming quarters.

我看到整個組織的活力動能讓我對 FAT Brand 的未來充滿信心。我期待在接下來的幾季向你們通報我們的進展。

And, with that, I'd like to hand the call over to Ken Kuick to discuss our financial highlights from the fourth quarter. Ken?

現在，我想將電話交給 Ken Kuick，討論我們第四季的財務亮點。肯？

Thanks, Andy.

謝謝，安迪。

Before I discuss our quarterly results, I'd like to briefly recap -- and Andy covered it a bit -- our recent spinoff of Twin Hospitality.

在討論我們的季度業績之前，我想簡單回顧一下——安迪已經稍微講過了——我們最近剝離了 Twin Hospitality。

On January 30, we distributed 5% of our ownership in Twin Hospitality Group Inc.'s classic common stock to our shareholders, while the remaining shares continue to be held by FAT Brands. Twin Hospitality Group began trading on the Nasdaq at the time of the spinoff. And we're excited, as we begin this next chapter.

1 月 30 日，我們將所持有的 Twin Hospitality Group Inc. 經典普通股 5% 的所有權分配給我們的股東，其餘股份繼續由 FAT Brands 持有。Twin Hospitality Group 在分拆時開始在納斯達克交易。我們非常興奮，因為我們即將開始下一章。

Separately, during the fourth quarter, we refinanced our Twin Peaks debt to a new series of 30-year fixed-rate notes. This refinancing strengthens our financial structure and enabled us to complete the public listing of Twin Hospitality.

另外，在第四季度，我們將 Twin Peaks 債務再融資為一系列新的 30 年期固定利率票據。此次再融資加強了我們的財務結構，使我們能夠完成Twin Hospitality的公開上市。

As Andy mentioned, we are committed to raising equity at Twin Hospitality and reducing debt by $75 million in 2025 and believe we are on track to fulfill that commitment.

正如安迪所提到的，我們致力於提高 Twin Hospitality 的股權並在 2025 年減少 7500 萬美元的債務，並相信我們有望履行這一承諾。

Moving on to our fourth -quarter results. I'll start by noting that 2024 was a 52-week fiscal year and 2023 was a 53-week fiscal year. The fourth quarter of 2024 was a 13-week quarter and the fourth quarter of 2023 was a 14-week quarter. So there's one more week of operations in last year's results and the extra week falls in the fourth quarter.

接下來介紹我們第四季的業績。首先要指出的是，2024 年財政年度為 52 週，而 2023 年財政年度為 53 週。2024 年第四季為 13 週，2023 年第四季為 14 週。因此，去年的業績中多出了一周的營運時間，而這額外的一周是在第四季度。

Moving on to our quarterly results. Total revenues were $145.3 million in the quarter, an 8.4% decrease from $158.6 million in last year's quarter. This was driven by the incremental operating week in the prior year quarter, which contributed $11.3 million in revenue, lower same store sales, and the closure of Smokey Bones locations for conversion into Twin Peaks lodges, partially offset by revenue generated by our new Twin Peaks lodges.

繼續討論我們的季度業績。本季總營收為 1.453 億美元，較去年同期的 1.586 億美元下降 8.4%。這是由於去年同期營業週數增加（貢獻了 1,130 萬美元的收入）、同店銷售額下降以及 Smokey Bones 分店關閉改建為 Twin Peaks 旅館所致，但新 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 $34.5 million in the quarter, from $30.3 million in the year ago quarter, primarily due to $5 million in Smokey Bones store closure costs, partially offset by the incremental operating week in the prior year quarter.

談到成本和費用。本季一般及行政開支從去年同期的 3,030 萬美元增至 3,450 萬美元，主要由於 Smokey Bones 門市關閉成本為 500 萬美元，但被去年同期的營業週增量部分抵銷。

Costs of restaurant and factory revenues decreased to $97.2 million compared to $105.1 million, primarily due to lower company-owned restaurant sales.

餐廳和工廠收入成本從 1.051 億美元下降至 9,720 萬美元，主要原因是公司自有餐廳銷售額下降。

During the fourth quarter of 2024, we recognized $30.6 million of non-cash, goodwill, and other intangible asset impairment, primarily resulting from the decline in restaurant performance during 2024.

2024 年第四季度，我們確認了 3,060 萬美元的非現金、商譽和其他無形資產減值，主要原因是 2024 年餐廳業績下滑。

Advertising expense varies in relation to advertising revenues and decreased to $11.8 million from $13.8 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.

廣告費用隨廣告收入而變化，從去年同期的 1,380 萬美元降至 1,180 萬美元。此外，我們放慢了在 Smokey Bones 的廣告宣傳速度，繼續執行將地點改造成 Twin Peaks 旅館的策略。

Total other expense net, which consisted primarily of interest expense, was $36.4 million in the quarter compared to $31.9 million in last year's quarter. Additionally, in the fourth quarter of 2024, we recognized a $2.2 million dollar non-cash loss on the extinguishment of debt related to the refinancing of our Twin Peaks securitized debt.

本季其他支出淨總額（主要包括利息支出）為 3,640 萬美元，去年同期為 3,190 萬美元。此外，在 2024 年第四季度，我們確認了與 Twin Peaks 證券化債務再融資相關的債務清償 220 萬美元的非現金損失。

Net loss was $67.4 million or $4.06 per diluted share compared to a net loss of $26.2 million or $1.68 per share in the prior year quarter. And on an as-adjusted basis, our net loss was $29.9 million or $1.87 per diluted share compared to $17.3 million or $1.15 per diluted share in the prior year quarter.

淨虧損為 6,740 萬美元，即每股虧損 4.06 美元，而去年同期淨虧損為 2,620 萬美元，即每股虧損 1.68 美元。經過調整後，我們的淨虧損為 2,990 萬美元，即每股攤薄虧損 1.87 美元，而去年同期的淨虧損為 1,730 萬美元，即每股攤薄虧損 1.15 美元。

And, lastly, adjusted EBITDA, for the quarter, was $14.4 million compared to $27 million in the year ago quarter, with the extra operating week in the fourth quarter of 2023 contributing $1.9 million to adjusted EBITDA.

最後，本季調整後的 EBITDA 為 1,440 萬美元，而去年同期為 2,700 萬美元，2023 年第四季的額外營業週為調整後的 EBITDA 貢獻了 190 萬美元。

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

接線員，請打開熱線來回答問題。

Thank you. We will now be conducting a question-and-answer session.

謝謝。我們現在將進行問答環節。

(Operator Instructions)

（操作員指示）

Roger Lipton, Lipton Financial Services.

羅傑‧利普頓，利普頓金融服務公司。

Yeah. Hi, Andy. Hi, Ken. Several questions.

是的。你好，安迪。你好，肯。幾個問題。

The Smokey Bones impairment loss -- the stores closed -- you mentioned, presumably, there was an operating or an EBITDA loss in the quarter, also, that affected the results. Is that a fair assumption?

您提到的 Smokey Bones 減損損失（即門市關閉）大概也影響了本季的經營或 EBITDA 損失，這也影響了業績。這是一個合理的假設嗎？

It is, Roger. It's a fair assumption. The operating loss from those restaurants, really, was felt throughout the year.

是的，羅傑。這是一個合理的假設。事實上，這些餐廳的經營虧損全年都存在。

Right. Can you quantify that, at all?

正確的。你能量化這一點嗎？

It's about $2.6 million for the year. Full year.

全年約 260 萬美元。全年。

Okay. And I noted that the litigation costs dropped, quite sharply, in half, actually, year to year.

好的。我注意到訴訟成本實際上逐年大幅下降了一半。

Granted that it's hard to talk about the expectations of litigation, but, Andy, can you venture any thought, at all, in terms of how that's going or might go? Or how the cash cost out-of-pocket will take place, here, going forward?

誠然，談論訴訟的預期是件很難的事，但是，安迪，你能否大膽地思考一下訴訟的進展情況或可能進展情況？或者，今後現金成本的自付將如何發生？

Well, as you know, no company really wants to talk about continuing litigation without having any clear line of sight. But we're hopeful that the bulk of this litigation gets resolved, during this year, and we eliminate further legal expense.

嗯，正如你所知，沒有任何一家公司真的願意在沒有任何明確線索的情況下談論繼續訴訟。但我們希望大部分訴訟能夠在今年解決，並且我們可以避免進一步的法律費用。

We also are hopeful that we'll reach a settlement with some of our insurance carriers that will enable us to recover some of those legal fees that we've spent, this year. And I think we're very optimistic about that coming to play in, probably, Q2.

我們也希望能與一些保險公司達成和解，以便我們可以收回今年花費的部分法律費用。我認為我們對此非常樂觀，可能在第二季度實現。

So look forward to reporting on that, as soon as we have news to break.

因此，我們期待在有新聞發佈時立即報導此事。

Okay. And I think everybody has to be concerned -- you, guys, most of all -- about liquidity and maintaining strong liquidity. So can you bring us up-to-date on how that stands, in terms of cash-on -hand and available cash to deal with the month-to -month operational needs?

好的。我認為每個人——尤其是你們——都必須關心流動性以及保持強勁的流動性。那麼，您能否向我們介紹現金儲備和可用現金（用於滿足每月營運需求）的最新情況？

Sure. All of our numbers are reported, publicly. So you can look at our financial statements for cash-on-hand.

當然。我們的所有數字均已公開報告。因此，您可以查看我們的財務報表以了解現金狀況。

But, with respect to liquidity, we maintain an available-for-sale portfolio of bonds. We have approximately $150 million available for sales securities, that sit on our balance sheet. That, from time to time, as we need liquidity, we sell them into the market to generate cash.

但就流動性而言，我們持有可供出售的債券組合。我們有大約 1.5 億美元可用於銷售證券，這些證券已計入我們的資產負債表。有時，當我們需要流動性時，我們會將它們賣到市場上以產生現金。

We also have an ATM-on-file that allows us to issue preferred stock, common stock, whatever we need t for liquidity purposes.

我們還有一台 ATM 機，可以讓我們發行優先股、普通股以及任何我們需要的流動性股票。

And, as noted already on this call, we anticipate raising equity at the Twin Peaks-level in the coming weeks, in an effort to reduce some of our Twin Peaks corporate debt. And that will also generate liquidity for Twin Peaks and some repayment of intercompany obligations between Twin Peaks and FAT.

而且，正如本次電話會議中已經提到的，我們預計在未來幾週內將在 Twin Peaks 層面提高股權，以減少部分 Twin Peaks 公司債務。這也將為 Twin Peaks 創造流動性，並償還 Twin Peaks 和 FAT 之間的部分公司間債務。

So all those things are happening. The markets seem to be open and moving again, which is great. And we don't really see any foreseeable issues.

所以所有這些事情都在發生。市場似乎又開放並開始運轉，這很好。我們確實沒有看到任何可預見的問題。

All right. That's helpful.

好的。這很有幫助。

And, in terms of the potential within the portfolio, aside from the potential of Twin Peaks, which is obviously on everybody's mind and is taking place and will progress forward.

並且，就投資組合的潛力而言，除了《雙峰》的潛力之外，這顯然是每個人都在關注的，並且正在進行中，並將繼續向前發展。

But what portion of your remaining 16 brands could be used the same way? What are you thinking about, in terms of -- you mentioned Johnny Rockets, with international growth. I don't know whether that's in any state that could be used in a similar fashion.

但是，剩下的 16 個品牌中有多少可以採用相同的方式使用？就您提到的 Johnny Rockets 的國際成長而言，您是怎麼想的？我不知道它是否處於可以以類似方式使用的狀態。

You should not think about -- I would not think about FAT Brands as an activity and splitting up the company brand by brand. That's not a goal that we've stated.

你不應該考慮——我不會將 FAT Brands 視為一種活動並將公司品牌逐個拆分。這不是我們提出的目標。

We felt that the Twin Peaks business is very different than many of the other franchise concepts that we operate -- in that alcohol percentages, et cetera. So we've spun it off, now.

我們認為，雙峰業務與我們經營的許多其他特許經營理念非常不同——例如酒精百分比等等。因此我們現在將其剝離。

And, of course, we're sitting on some 50 million shares of Twin Peaks stock so we look forward to realizing value from that brand, which, in and of itself, would go a long way to either reducing or eliminating all of our debt.

當然，我們擁有約 5000 萬股 Twin Peaks 股票，因此我們期待從該品牌中實現價值，這本身將大大有助於減少或消除我們的所有債務。

We've talked before about our manufacturing operation -- and I just talked about it on this call -- as an opportunity. to essentially take a non-core asset. And once we've used up more capacity or utilization of the factory, then, we might look for a liquidity event.

我們之前談過我們的製造業務——我剛剛在這次電話會議上談到了它——這是一個機會。本質上是獲取非核心資產。一旦我們用完了更多的產能或工廠的利用率，我們可能會尋找流動性事件。

Now, that could be an outright sale. It could be a spinoff, again. One of those things.

現在，這可能是一次直接出售。這可能又是一部衍生作品。其中之一。

I don't see us spinning off additional restaurant brands. today. Never say never but I don't really think that's likely. In fact, I think we'll probably acquire more brands.

我不認為我們會分拆出其他餐飲品牌。今天。永遠不要說永遠，但我真的不認為這有可能。事實上，我認為我們可能會收購更多品牌。

But I think the next couple of things to look at are our investment in Twin Peaks and our manufacturing business, as logical next steps.

但我認為接下來要考慮的幾件事是我們對 Twin Peaks 和製造業務的投資，這是合乎邏輯的下一步。

Okay. Well. Thanks very much.

好的。出色地。非常感謝。

Joe Gomes, Noble Capital Markets.

喬‧戈麥斯 (Joe Gomes)，Noble Capital Markets。

Hey. Good afternoon, everybody. It's [Josh], on for Joe.

嘿。大家下午好。我是喬許 (Josh)，替喬上場。

I just wanted to start off with -- I looked at the earnings and you, guys, have 92 openings for the year, which is great. But you, guys, expected a little bit of 100-plus, can you add any color as to, maybe, why would this just push to the right from the franchisees, themselves, into '25?

我只是想首先——我查看了收益，發現你們今年有 92 個職位空缺，這很棒。但是，你們預計會有 100 多個，你們能否解釋一下，為什麼這會從特許經營商本身向右推到 25 個呢？

Yeah. There's definitely a little slippage into' 25, from 24, of maybe 20% of the stores. Some of that has to do with franchisee financing; a little bit of construction delays; but, mostly, just franchisees dragging their feet a little bit or claiming that lenders, from a construction financing standpoint, are just a little bit slower to react, a little choosier.

是的。大約有 20% 的商店確實從 24 家下滑至 25 家。其中一些與特許經營商融資有關；施工稍微有些延誤；但大多數情況下，加盟商只是在拖延，或者聲稱從建築融資的角度來看，貸款人的反應速度有點慢，有點挑剔。

So it's a slight delay but the pipeline's very solid. We have -- one way to measure the health of the franchise system is when your franchisees are continuing to come back and buy the rights to build more stores.

因此雖然有一點延遲，但管道非常堅固。我們有——衡量特許經營體系健康狀況的一種方法是看看你的特許經營者是否繼續回來購買開設更多商店的權利。

And, like I mentioned, we sold, like, 250 incremental stores last year, keeping that pipeline full and keeping our development schedule full. So we're optimistic that we'll get more than 100 opened this year.

而且，正如我所提到的，去年我們銷售了大約 250 家增量商店，保持了通路暢通，也讓我們的開發計畫安排得滿滿噹噹。因此，我們樂觀地認為，今年我們將開設 100 多家門市。

We'll know better, as we get into the coming couple of quarters, exactly what number that's going to be.

隨著我們進入未來幾個季度，我們將會更清楚地知道這個數字到底是多少。

Okay. That's helpful.

好的。這很有幫助。

And, obviously -- we got a report that consumer confidence is down. Has any, really, of the brands been hit harder than others, with respect to, like, consumer spending?

顯然，我們收到一份報告指出消費者信心下降。從消費者支出等方面來看，是否有哪個品牌受到的打擊比其他品牌更嚴重？

And, really, on that flip side, which concepts have you, guys, seen that, really, have been, like, outperformers?

那麼，實際上，從另一個角度來看，你們看過哪些概念真正表現出色？

Yeah. We definitely saw the QSR sector get hit on at the Fazoli's level, where it's very price-sensitive brand. And you had frequency during 2024 trade-down, as customers were trading down from their spending patterns -- from fast casual to QSR and so on.

是的。我們確實看到 QSR 行業受到了與 Fazoli 同等程度的衝擊，因為它是一個對價格非常敏感的品牌。2024 年期間，消費降級現象會頻繁出現，因為顧客的消費模式正在降低——從快餐到 QSR 等等。

And so we probably saw high-single-digit declines in that category. But things have also started to turn around. We're pretty optimistic about 2025 sales.

因此，我們可能看到該類別出現了高個位數的下降。但情況也開始出現轉機。我們對 2025 年的銷售情況非常樂觀。

And we've seen some categories, definitely, be in the [block]. We've seen, for example, Round Table Pizza with positive same store sales. And we've seen cookies and ice cream come back, handsomely.

我們已經看到一些類別確實在[堵塞]。例如，我們看到 Round Table Pizza 的同店銷售額表現良好。我們也看到餅乾和冰淇淋的銷量大幅回升。

So I think it's a little bit of a mixed bag. But, also, there's been crazy weather in the first six weeks of the year that, really, has affected everyone.

所以我認為這有點混亂。但今年前六週的天氣也異常惡劣，確實影響了每個人。

So I think, generally, we're optimistic. We may not be forecasting huge positive same-store sales increases across all brands but there's definitely segments where we're seeing positive pushes.

所以我認為，整體而言，我們是樂觀的。我們可能不會預測所有品牌的同店銷售額都會大幅成長，但肯定有一些細分市場出現了正面的推動作用。

Okay. That's great.

好的。那太棒了。

And the last one for me is: Obviously, you touched on this in you, guys', remarks. But, with the election really behind us now, can you expand more, really, in the M&A pipeline of new opportunities come to you that really just haven't, prior to the election?

對我來說最後一個問題是：顯然，你們在評論中提到了這一點。但是，現在大選已經真正結束，您是否真的可以在併購管道中進一步拓展大選前尚未出現的新機會？

Well, we have -- I don't think it's so much about the election -- we see a lot of stuff, right? We see deals every single week.

嗯，我們——我不認為這與選舉有太大關係——我們看到了很多東西，對吧？我們每週都會看到交易。

There's just a lot of turnarounds. And they just haven't been strategic for us, where we're checking two or three boxes, at the same time. Cost of capital is still high, relative to 2021.

只是有很多的逆轉。而它們對我們來說並不具有戰略意義，我們需要同時檢視兩個或三個箱子。與 2021 年相比，資本成本仍然很高。

And we'd rather refinance, delever, things like that, right now, rather than add to our leverage.

我們現在寧願進行再融資、去槓桿等，而不是增加槓桿。

So we've committed to unlocking value and reducing leverage. We're focused on that.

因此，我們致力於釋放價值並降低槓桿。我們專注於此。

There are definitely some targets that make strategic sense for us to acquire -- that would complement the existing portfolio. We are pursuing those. Timing is everything so we'll just have to see how that comes together and how the markets react.

確實有一些目標對我們來說具有戰略意義，值得收購——這將補充現有的投資組合。我們正在追求這些。時機就是一切，所以我們只需要看看一切如何進行以及市場如何反應。

And I think we'd all like to see lower interest rates and a looser financing market. But, until such time, we're going to focus on delevering. We've got this huge pipeline of organic growth, which is free. So to get that $50 million of incremental EBITDA by just opening those 1,000 stores, that doesn't cost us anything. We don't have to borrow anything.

我認為我們都希望看到更低的利率和更寬鬆的融資市場。但在此之前，我們將專注於去槓桿。我們擁有這個巨大的有機成長管道，而且是免費的。因此，只需開設 1,000 家門市即可獲得 5,000 萬美元的增量 EBITDA，這對我們來說無需花費任何成本。我們不需要藉任何東西。

And so that's a big focus for us -- is to get those stores open. If we wanted to buy $50 million of EBITDA, then, we're going to have to go write a big check. And that's going to have to come from somewhere. So that doesn't really help our delevering strategy.

因此，我們的重點是開設這些商店。如果我們想購買 5000 萬美元的 EBITDA，那麼我們就必須開出一張大額支票。而這必須從某個地方來。所以這對我們的去槓桿策略沒有真正的幫助。

Now, that may all change as Twin Peaks grows, as we get diluted in our ownership and create some liquidity there and pay down some debt -- that could all change. But I don't think that that's a big 2025 initiative, other than, maybe, one or two targets that are very interesting, strategically, for us and we are continuing to focus on.

現在，隨著 Twin Peaks 的發展，隨著我們的所有權被稀釋、在那裡創造一些流動性並償還一些債務，這一切都可能發生變化——這一切都可能發生變化。但我不認為這是一項重大的 2025 年計劃，除了可能有一兩個對我們來說在戰略上非常有趣的目標，並且我們將繼續關注這些目標。

Okay. That's helpful. Thanks for taking my questions.

好的。這很有幫助。感謝您回答我的問題。

Thank you.

謝謝。

Roger Lipton, Lipton Financial Services.

羅傑‧利普頓，利普頓金融服務公司。

Yeah. Hi, again. Relative to putting to work or disposing of the Smokey Bones locations, what timetable do you think is realistic?

是的。嗨，又見面了。相對於投入營運或處置 Smokey Bones 門市，您認為什麼樣的時間表是現實的？

Smokey Bones will -- the majority of them will get through in 2026. 2025, 2026. We should be fairly far along.

Smokey Bones 將會——其中大多數將在 2026 年通過。2025年，2026年。我們應該已經走了很遠了。

There may be some stragglers. But the majority of it, over the next 24 months, we will have made a decision on and move forward.

可能會有一些落後者。但對於其中的大部分，在接下來的 24 個月內，我們將做出決定並繼續前進。

The numbers have been very encouraging. There are some complicated leases, where there are multiple properties under master leases. And so we're trying to negotiate all of the leases, at once, because that's what the landlord wants, maybe moreso than what we want.

這些數字非常令人鼓舞。有一些複雜的租賃，其中主租賃下有多處房產。因此，我們試圖一次協商所有租約，因為這是房東想要的，也許比我們想要的更甚。

So it's taking a little longer on some of those more complicated master leases. But, otherwise, we have a solid line of sight and we have franchisees who are stepping up to convert locations in their markets. And we're converting the corporate ones, as well.

因此，處理一些較為複雜的主租約需要更長的時間。但除此之外，我們擁有堅實的視線，並且我們的特許經營商正在加緊在其市場中轉換地點。我們也正在轉變企業的模式。

Right. And you're still thinking that something, like, 30 of the 58 locations will be suitable for conversions?

正確的。您仍然認為 58 個地點中的 30 個地點適合轉換嗎？

Yeah. 30 is a good number. There were 61, when we started. We've converted a couple. We've closed one.

是的。 30 是一個好數字。當我們開始時，有 61 個。我們已經改變了一對夫婦。我們已經關閉了一個。

So 30 is a safe number, give or take, that we get done. There's always a chance it's more.

所以，30 是一個安全的數字，無論多少，我們都能完成。總是有更多機會的。

Usually, if we haven't converted a location and we don't plan to, it's because there's already a Twin Peaks nearby so they're too close to each other. Or there's some landlord restriction that may have to do with the sale of alcohol or things like that.

通常，如果我們還沒有轉換某個位置並且我們也不打算這樣做，那是因為附近已經有一座雙峰，所以它們彼此太近了。或者房東可能對出售酒精或類似物品有一些限制。

And some landlords, where there might be a Smokey Bones, have some master lease, with a Target, as an example where they may have a 25% alcohol restriction. And we know that Twin Peaks is in the high 40%s percentage of alcohol so it doesn't qualify.

有些房東，例如在有 Smokey Bones 的地方，會與 Target 簽訂一些主租約，例如，他們可能會對酒精飲料的含量進行 25% 的限制。我們知道《雙峰》的酒精含量高達 40%，所以它不符合標準。

Those are the kind of reasons as to why.

這些就是原因。

Okay. Thank you.

好的。謝謝。

Thank you, Roger.

謝謝你，羅傑。

Thank you.

謝謝。

As there are no further questions, ladies and gentlemen, we have reached the end of question-and-answer session.

女士們、先生們，由於沒有其他問題，問答環節已經結束。

I would, now, like to turn the floor over to Andy Wiederhorn for closing comments.

現在，我想請 Andy Wiederhorn 發表最後評論。

Thank you, operator.

謝謝您，接線生。

I would like to thank all of you for participating in our earnings call, today. Happy to take any follow up, on a one-off basis.

我想感謝大家今天參加我們的收益電話會議。很高興能接受一次性的後續跟進。

Thank you, again.

再次感謝您。

Thank you. This concludes today's teleconference.

謝謝。今天的電話會議到此結束。

You may disconnect your lines, at this time. Thank you for your participation.

此時您可以斷開線路。感謝您的參與。