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                                    What caused FAT's earnings decline in 2024?
                                </h1> <div class="user_slot" data-v-0eba195e=""><img src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/img/default_aime_user.ec532c9.png" alt="user" class="avatar" data-v-0eba195e=""> <span class="user_desction" data-v-0eba195e="">
                                        
                                        4/11/2025 03:23pm
                                    </span></div></div></div> <div class="seo-text-answer" data-v-0eba195e="">The decline in FAT's earnings in 2024 can be attributed to several factors:

1. **Operational Costs from Acquisitions**: The company's acquisition of Smokey Bones contributed to increased operational costs, which negatively impacted profitability. This is consistent with the report of a net loss of $44.8 million in Q3 2024, despite a 31.1% revenue jump to $143.4 million.
2. **Strategic Expansion and New Restaurant Openings**: While strategic expansions and new restaurant openings have contributed to revenue growth, the initial investment and operational costs associated with these new ventures can lead to short-term earnings dilution. For instance, FAT Brands added 22 new units in Q3 2024 and plans to reach 100 by year-end, which could have placed additional strain on financials.

In summary, the earnings decline in 2024 for FAT Brands can be attributed to a combination of operational costs from acquisitions and the strategic expansion of the business, which in the short term, affect the profitability of the company.</div> <div class="dialog_answer" data-v-0eba195e=""><div class="dialog_content" data-v-0eba195e=""><div class="answer_content" data-v-0eba195e=""></div></div></div></div></div> </div></div></div> </div> <div class="extra-module" data-v-261d488f=""><img src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/img/recommend-logo.4f9ccc8.png" alt="right-logo" fetchpriority="high" class="recommend-logo-img" data-v-261d488f=""> <div class="recommend-part" data-v-7790c618="" data-v-261d488f=""><div class="recommend-query-card" data-v-8359219a="" data-v-7790c618=""><div class="title" data-v-8359219a=""><img src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/img/screener-recommend-icon.b007ca8.svg" alt="icon" data-v-8359219a=""> <span data-v-8359219a="">Aime finds your next big stock</span></div> </div> <div class="recommend-query-card" data-v-8359219a="" data-v-7790c618=""><div class="title" data-v-8359219a=""><img src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/img/stock-recommend-icon.77f1c78.svg" alt="icon" data-v-8359219a=""> <span data-v-8359219a="">Aime powers your decisions</span></div> </div></div> </div> <div class="container-mask" style="display:none;"></div></div></div></div><script>window.__NUXT__=(function(a,b,c,d,e,f,g,h,i,j,k,l,m,n,o,p,q,r,s,t,u,v,w,x,y,z,A,B,C,D,E,F,G,H,I,J,K,L,M,N,O,P,Q,R,S,T,U,V,W,X,Y,Z,_,$,aa,ab,ac,ad,ae,af,ag,ah,ai,aj,ak,al,am,an){return {layout:"default",data:[{noData:c,currentQuestion:d,textDescription:E,comeFrom:"AInvestShareLink",events:[],answerSource:k}],fetch:{},error:l,state:{sharePreviewModule:{loadJgySuccess:m,dialogRenderList:[{originAnswer:{input_media_info:[],session_round:1,agent_id:a,output_media_info:[],task_id:a,language:a,source:k,cache_builder:a,reply_action:"Answer",execute_mode:w,event_refresh_answer:a,param:"{\"entity_info\":{},\"add_info\":{\"ori_question\":\"What caused FAT's earnings decline in 2024?\"},\"event_list\":[],\"client_ip\":\"\",\"question\":\"What caused FAT's earnings decline in 2024?\",\"user_id\":\"dp70736823\",\"user_name\":\"\",\"trace_id\":\"21a26e7f-f73e-4c16-b1d2-7770681d221c\",\"session_id\":\"21a26e7f-f73e-4c16-b1d2-7770681d221c\",\"source\":\"ths_ainvest_lite_web\",\"input_type\":\"typewrite\"}",agent_info:[{info_type:"search",raw_data:{number:r,title:F,summary:G,full_summary:"Fat Brands ( (FAT) ) has issued an announcement. 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caused FAT's earnings decline in 2024?","21a26e7f-f73e-4c16-b1d2-7770681d221c","other\u002FopenAnswer","progress\u002Fsearching_for",1000,"searching_for","llm_generated","ths_ainvest_lite_web",null,0,"📈 How did FAT's cost structure change in 2024 compared to previous years?","🏆 What are the analyst expectations for FAT's earnings recovery in 2025?","🔎 What were FAT's revenue sources in 2024?","STR",3,"dp70736823",2001,"rich_text","auto","agent","6b3c65ebc983002e","explain news events","thinking","The user wants to analyze why FAT Brands' revenue was decreasing in 2024. I should focus on its 2024 revenue, revenue by business, and analyst opinions. I will use FinQuery for the data mentioned above; use Search for the reasons behind corresponding revenue decrease.","signal","39196","\u002F\u002Fcdn.ainvest.com\u002FfrontResources\u002Fs\u002Ffoiegras\u002FrecommendList\u002F1.12.0\u002FrecommendList@1.12.0index.js","The decline in FAT's earnings in 2024 can be attributed to several factors:\n\n1. **Operational Costs from Acquisitions**: The company's acquisition of Smokey Bones contributed to increased operational costs, which negatively impacted profitability. This is consistent with the report of a net loss of $44.8 million in Q3 2024, despite a 31.1% revenue jump to $143.4 million.\n2. **Strategic Expansion and New Restaurant Openings**: While strategic expansions and new restaurant openings have contributed to revenue growth, the initial investment and operational costs associated with these new ventures can lead to short-term earnings dilution. For instance, FAT Brands added 22 new units in Q3 2024 and plans to reach 100 by year-end, which could have placed additional strain on financials.\n\nIn summary, the earnings decline in 2024 for FAT Brands can be attributed to a combination of operational costs from acquisitions and the strategic expansion of the business, which in the short term, affect the profitability of the company.","Fat Brands Reports Revenue Growth Amid Net Loss","Fat Brands ( (FAT) ) has issued an announcement. FAT Brands Inc. reported a significant increase in third-quarter revenue for 2024, driven by strategic expansions and new restaurant openings. The company, which now boasts 2,300 locations globally, added 22 new units this quarter and plans to reach 1...","https:\u002F\u002Fwww.nasdaq.com\u002Farticles\u002Ffat-brands-reports-revenue-growth-amid-net-loss","2024-10-30","6b3c65ebc983002e_0","oeqxkhszf","oeqxkhszf_layer","base","agent_common_v2\nagent-summary","normal_agent","NONE","typewrite",1744356227769,"stock","186","Querying Stock",999,"The decline in FAT's earnings in 2024 can be attributed to several factors:\n\n1","FAT",". **Operational Costs from Acquisitions**: The company's acquisition of Smokey Bones contributed to increased operational costs, which negatively impacted profitability[^3]",". This is consistent with the report of a net loss of $44.8 million in Q3 2024, despite a 31.1% revenue jump to $143.4 million[^3].\n2. **Strategic Expansion and New Restaurant Openings**: While strategic expansions and new restaurant openings have contributed to revenue growth, the initial investment and operational costs associated with these new ventures can lead to short-term earnings dilution. For instance, FAT Brands added 22 new units in Q3 2024 and plans to reach 100 by year-end, which could have placed additional strain on financials[^3].\n\nIn summary, the earnings decline in 2024 for FAT Brands can be attributed to a combination of operational costs from acquisitions and the strategic expansion of the business, which in the short term, affect the profitability of the company.","2+679_496_21_554+0+0+21a26e7f-f73e-4c16-b1d2-7770681d221c+22eebe20d618c880d5b4e1329028e93e+llm_generated+aimeTagAnalysis+0+0.056356173008680344+1","2+679_496_21_554+0+0+21a26e7f-f73e-4c16-b1d2-7770681d221c+7d919f6601fea1e873f2196b80b25fd3+llm_generated+aimeTagAnalysis+0+0.04990627244114876+2","2+679_496_21_554+0+0+21a26e7f-f73e-4c16-b1d2-7770681d221c+2fb4ecb874295e648ca2016bd93c25a2+llm_generated+aimeTagAnalysis+0+0.04788711294531822+3","recommend_query_list","ztxxx06c0a024223920bbbeb1e0926","send_text","item_type","rec_info","display_text","rec_reason","root","relative","iwencai\u002FrecommendList0326","aigc",Array(0),"\u002F"));</script><script src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/b929a16.js" defer=""></script><script src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/28ccbec.js" defer=""></script><script src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/d9802b5.js" defer=""></script><script src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/2077034.js" defer=""></script><script src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/1e0f8d6.js" defer=""></script><script src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/7a5f495.js" defer=""></script><script src="//cdn.ainvest.com/frontResources/s/iwc-aime-seo/921844b.js" defer=""></script>