Overview

* FAT Brands ( FAT ) fiscal Q2 revenue declines 3.4% yr/yr, beats analyst expectations

* Adjusted net loss for fiscal Q2 misses analyst estimates, per LSEG data

* Co opened 18 new locations, pursuing strategic initiatives for cash flow improvement

Outlook

* Company aims for cash flow positive status in coming quarters

* FAT Brands ( FAT ) plans over 100 restaurant openings this year

* Company pursuing strategic partnerships to expand manufacturing capacity

* FAT Brands ( FAT ) converting bonds to interest-only to save $30-$40 mln annually

Result Drivers

* STORE OPENINGS - 18 new locations opened in Q2, including co-branded stores, contributing to growth strategy

* DIGITAL SALES - Digital initiatives boost sales at Great American Cookies and Round Table Pizza, with significant loyalty-driven growth

* FINANCIAL STRATEGIES - Bond conversion and G&A reductions aimed at improving cash flow, preserving capital

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $146.80 $146.60

Revenue mln mln (2

Analysts

)

Q2 -$2.88

Adjusted

EPS

Q2 EPS -$3.17

Q2 Miss -$49 mln -$39 mln

Adjusted (2

Net Analysts

Income )

Q2 Net -$54.20

Income mln

Q2 Beat $15.70 $14.20

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 $12.50, about 80.8% above its July 29 closing price of $2.40

Press Release:

(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.)