Overview

* FAT Brands ( FAT ) fiscal Q3 revenue declines 2.3% yr/yr, missing analyst expectations

* Adjusted EBITDA for fiscal Q3 misses analyst estimates, indicating operational challenges

* Company focuses on co-branding and partnerships for future growth

Outlook

* Company expects $50-$60 mln incremental EBITDA from 900 committed locations

* Company advancing $75-$100 mln equity raise to pay down debt

* Company sees positive cash flow in upcoming quarters

Result Drivers

* CO-BRANDING SUCCESS - Co-branding initiatives, such as the dual-branded Round Table Pizza and Fatburger location, have doubled weekly sales and transactions, highlighting potential for growth

* STRATEGIC EXPANSION - 60 new restaurant openings this year and a pipeline of 900 committed locations are expected to drive future growth

* FINANCIAL RESTRUCTURING - Efforts to restructure debt and pause dividends aim to preserve cash flow and reduce overall debt

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $140 mln $144.90

Revenue mln (2

Analysts

)

Q3 -$2.67

Adjusted

EPS

Q3 EPS -$3.39

Q3 Miss -$45.4 -$34.90

Adjusted mln mln (2

Net Analysts

Income )

Q3 Net -$58.2

Income mln

Q3 Miss $13.1 $17.30

Adjusted mln mln (1

EBITDA Analyst)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy"

* Wall Street's median 12-month price target for FAT Brands Inc ( FAT ) is $10.00, about 82.5% above its November 4 closing price of $1.75

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)