FAT Earnings Prediction
The chart below shows how FAT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FAT sees a -3.31% change in stock price 10 days leading up to the earnings, and a +0.35% change 10 days following the report. On the earnings day itself, the stock moves by -0.40%. This data can give you a slight idea of what to expect for the next quarter's release.
FAT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
143.37M
31.09%
-5.71%
Gross Margin
--
--
--
Operating Margin
-6.05%
-194.09%
264.46%
Net Margin
-31.22%
38.51%
20.59%
EPS
-2.74
-72.33%
12.76%
No Data Available
FAT Earnings Analysis
FAT Brands Inc. Class A Common Stock Corporation (FAT.O) Earnings Conference Call
Positive
Revenue Increase Driven by Acquisition: Total revenue increased 31.1% to $143.4 million, driven by the acquisition of Smokey Bones in the fourth quarter of 2023 and revenues from new restaurant openings.
Sales Growth Achievement: System-wide sales of $600.7 million in Q3, marking a 6.4% increase year-over-year.
EBITDA Decline Amid Costs: Adjusted EBITDA was $14.1 million, compared to $21.9 million in the corresponding quarter last year, reflecting strong operational performance despite increased costs.
Unit Expansion Plans: We opened 22 new units during the quarter, bringing our year-to-date openings to 62 units, with plans to open approximately 40 more units in the full fourth quarter.
Community Support Grants: The Foundation has awarded over 50 grants, surpassing the number awarded in 2023, demonstrating our commitment to community support.
Negative
EBITDA Decline Analysis: Adjusted EBITDA decreased to $5.3 million, compared to $10.8 million in the third quarter of 2023, indicating a significant decline in profitability.
Increased Net Loss: Net loss was $44.8 million or $2.74 per diluted share, compared to a net loss of $24.7 million or $1.59 per diluted share in the prior year quarter, reflecting worsening financial performance.
Rising Costs and Expenses: Costs and expenses increased by $45.8 million, or 44.6% in the third quarter, primarily due to the acquisition of Smokey Bones and increased professional fees related to pending litigation.
Acquisition-Driven Revenue Growth: Total revenues increased by 31.1% to $143.4 million, but this growth was primarily driven by the acquisition of Smokey Bones, indicating reliance on acquisitions for revenue growth rather than organic growth.
Sales Momentum Challenges: Restaurant sales were down sequentially, highlighting challenges in maintaining sales momentum despite overall revenue growth.
FAT FAQs
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FAT Earning Call Sentiment
FAT Brands Inc. (FAT) Q3 2024 Earnings Call Transcript
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00:00
00:00
FAT.O
-1.92%Positive
The earnings call summary shows mixed results with strong revenue growth but significant net losses and increased costs. The Q&A section highlights challenges with underperforming brands and debt refinancing. Despite some positive signs, such as successful brand conversions and franchise interest, financial health and lack of shareholder returns remain concerns. The lack of clear guidance on manufacturing and debt refinancing also adds uncertainty. Overall, these factors suggest a negative stock price movement in the next two weeks.