Why did FAT's Q4 earnings miss forecasts?

FAT Brands' Q4 earnings missed forecasts due to a combination of factors: 1. **Revenue Decline**: The company experienced a decrease in total revenue by 8.4% in the fourth quarter compared to the previous year. This decline was attributed to a couple of factors: - The absence of an additional operating week present in the previous year. - Lower same-store sales, which declined by 1.6%. 2. **Increased Operational Costs**: FAT Brands faced an increased net loss of $67.4 million in the fourth quarter, which was a significant rise from the $26.2 million net loss in the same period the previous year. This was partly due to the operational costs related to acquisitions, such as Smokey Bones. 3. **Strategic Moves Impact**: The spin-off of Twin Hospitality Group Inc. also had an impact on the financial results. While it created a separate publicly traded entity to enhance growth opportunities, it required significant investment and resources, which affected the overall financial performance. In summary, FAT Brands' Q4 earnings miss was primarily due to a combination of revenue decline and increased operational costs, along with the strategic moves that impacted the financial results.