FAT Brands Inc Q3 2024 Earnings Call Transcript

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

Question: Alton Stump - Loop Capital - Analyst : I want to ask you about the conversion. Obviously, I think you mentioned you know, took place in September in Lakeland, obviously. You know, with Smokey Bones still, obviously, just over six weeks into it. But, you know, how's that gone so far? And, you know, have you learned anything either way as far as, you know, what the potential could be for, you know, obviously, what will, you know, undoubtedly be further conversions down the road?

Question: Alton Stump - Loop Capital - Analyst : Got it. Understood. Thank you. And then, you know, you know, I thought I touch on, you know, the Twin Peaks brand, I think you mentioned 9 to 14 million as far as, you know, some outperformers, I think that number's been 9 to 12 million in the past. You know, with that, you know, is it safe to say that you know, brand is outperforming your, you know, the overall system as far as you know, customer standpoint or the, or, you know, you know, or just overall same store sales versus what you saw, you know, in your other 17 brands during the quarter.

Question: Alton Stump - Loop Capital - Analyst : Great. Sounds great. Thanks so much for your help. I will hop back in the queue. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2024 / 9:00PM, FAT.OQ - Q3 2024 FAT Brands Inc Earnings Call

Question: Joe Gomes - NOBLE Capital. - Analyst : Good morning, good afternoon. Thanks for taking the questions. Andy. So I kinda want to hope to see if you can maybe kind of square the circle for me here. You know, if I'm looking at the operations, you know, operating loss has grown every quarter this year. You know, royalty revenues were down not only year over year, but sequentially, the restaurant sales were down sequentially even though, you know, you're talking about, you know, how good Twin Peaks is doing? Just really trying to get a better handle on, on what is happening beneath the surface here. You know, nine month adjusted EBITDA number is at I think 48 million versus 64 million last year. And this is with the addition of, you know, Smoky Bones is adjusted EBITA numbers, which I think you said we should add about 10 million. So just trying to get a better handle on the on the what's happening on the operating side that there's a lot of good things, you know, seem to be occurring but not being reflected in the numbers from where I can see.

Question: Joe Gomes - NOBLE Capital. - Analyst : Okay. Thank you for that. And on the factory, the manufacturing facility, you know, revenues there have been kind of, you know, flat over the past year or so. And I know you've spent a lot of time and effort in looking for third party customers you mentioned tonight, you know, you've got a lot of RFPs out there and, you know, trying to get a again, you know, a little more detail on, you know, when you think some of these RFPs might start coming in to start increasing the utilization of the factory. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2024 / 9:00PM, FAT.OQ - Q3 2024 FAT Brands Inc Earnings Call

Question: Joe Gomes - NOBLE Capital. - Analyst : Okay, great. And then one last one for me and I'll get back in queue. So you mentioned about you know, refine the debt associated with Twin Peaks. What about the other debt that is, is on the balance sheet, the preferred stock, anything new on, on trying to refine those or, or getting some better rates?

Question: Joe Gomes - NOBLE Capital. - Analyst : Great. Let me, let me add one more if I may you know, awesome job on the on the development deals, year-to-date. Where, where are you getting or seeing the most interest from franchisees in, in terms of signing these development deals, what brands.