FAT Brands Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

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

Question: Alton Stump - Loop Capital Markets - Analyst : Great thank you

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

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

Question: Alton Stump - Loop Capital Markets - Analyst : Okay, great. No, that is very good to hear and also very helpful. Thanks so much. I'll hop back in the queue.

Question: Joe Gomes - Noble Capital Markets - Analyst : Good afternoon thanks for taking my questions.

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

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

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

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

Question: Joe Gomes - Noble Capital Markets - Analyst : Okay great thanks I'll get back to you.

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

Question: Roger Lipton - Lipton Financial Service - Analyst : Right, okay.

Question: Roger Lipton - Lipton Financial Service - Analyst : Right, yeah, no doubt.

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

Question: Roger Lipton - Lipton Financial Service - Analyst : Okay, and lastly.

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

Question: Roger Lipton - Lipton Financial Service - Analyst : Okay. All right, that's, helpful. Thanks very much.