Fat Brands B 2025 Q3 Earnings Deepening Losses Amid Revenue Decline

Fat Brands B reported a 3.4% revenue decline to $138.52 million in Q3 2025, with losses widening to $3.39 per share, marking a 23.7% deterioration from the prior year. The results fell short of expectations, reflecting persistent operational challenges.

Revenue

Fat Brands B’s Q3 revenue of $138.52 million, down from $143.37 million in the same period last year, was driven by a mix of segment performances. Royalties contributed $21.58 million, while restaurant sales formed the largest portion at $96.64 million. Advertising fees, factory revenues, and franchise fees added $9.14 million, $9.65 million, and $1.50 million, respectively, with other revenue rounding out the total at $1.49 million.

Earnings/Net Income

The company’s losses deepened to $3.39 per share, a 23.7% increase in per-share losses year-over-year, while net income fell to -$59.45 million, a 32.8% decline compared to -$44.76 million in 2024 Q3. The deteriorating profitability underscores the need for strategic adjustments.

Price Action

The stock price of Fat Brands B dropped 4.10% during the latest trading day, 3.89% over the past week, and 14.28% month-to-date, reflecting investor concerns over the earnings shortfall and widening losses.

CEO Commentary

CEO Commentary

The CEO emphasized operational challenges, including market headwinds and cost pressures, which contributed to the revenue decline. Strategic priorities include refranchising efforts to optimize the restaurant portfolio and leveraging centralized management to drive brand growth. Leadership acknowledged the need for disciplined cost management and exploring debt restructuring to alleviate financial constraints, while expressing cautious optimism about long-term franchise expansion opportunities.

Additional News

Fat Brands B is actively considering debt restructuring to address financial constraints, as outlined in its recent SEC 10-Q filing. The company’s operational strategy remains focused on expanding existing brands and acquiring new ones, supported by centralized leadership and marketing services. Refranchising efforts continue to prioritize converting company-owned locations to franchise models, aiming to reduce capital intensity and enhance scalability. These initiatives align with broader goals to strengthen market positioning and drive sustainable revenue growth.