Fat Brands 2025 Q3 Earnings Net Loss Widens 32.8% to $59.45M

Fat Brands (FAT) reported its fiscal 2025 Q3 earnings on Nov 12, 2025, with results falling short of expectations. The company posted a wider-than-expected net loss and provided non-quantitative guidance, signaling ongoing financial challenges. Management highlighted strategic priorities to address headwinds, though profitability remains elusive.

Revenue

The total revenue of Fat Brands decreased by 3.4% to $138.52 million in 2025 Q3, down from $143.37 million in 2024 Q3.

Earnings/Net Income

Fat Brands's losses deepened to $3.39 per share in 2025 Q3 from a loss of $2.74 per share in 2024 Q3 (23.7% wider loss). Meanwhile, the company's net loss widened to $-59.45 million in 2025 Q3, representing a 32.8% increase from the $-44.76 million loss recorded in 2024 Q3. The deteriorating earnings performance underscores significant operational and financial pressures.

Price Action

The stock price of Fat Brands has dropped 5.96% during the latest trading day, has plummeted 15.98% during the most recent full trading week, and has plummeted 27.92% month-to-date.

CEO Commentary

The CEO of Fat Brands, [CEO Title], highlighted the company’s Q3 performance, noting challenges in maintaining profitability amid market headwinds, though revenue growth remained a key focus. Strategic priorities included optimizing franchisee support and accelerating digital transformation to enhance brand visibility. Leadership expressed cautious optimism, emphasizing disciplined cost management and long-term value creation through brand diversification.

Guidance

Fat Brands guided to revenue growth aligned with operational scalability, with no explicit quantitative targets disclosed. Qualitative expectations centered on strengthening market positioning via strategic investments in technology and franchise development, while maintaining financial prudence to mitigate risks.

Post-Earnings Price Action Review

Fat Brands' stock experienced a sharp decline following the earnings release, with a 5.96% intraday drop compounding a 15.98% weekly loss and a 27.92% monthly downturn. The negative sentiment reflects investor concerns over the company’s widening losses and lack of concrete financial guidance. While management emphasized long-term strategic initiatives, the absence of immediate turnaround metrics has dampened market confidence. The prolonged downward trend highlights the need for decisive action to stabilize both operational and financial performance.

Additional News

In its Nov 12, 2025 SEC 10-Q filing, Fat Brands disclosed ongoing debt restructuring efforts to alleviate financial constraints, including potential relief from noteholders. The company’s operational strategy remains focused on expanding existing brands and acquiring new ones, supported by centralized management services. Refranchising initiatives continue, with operations being sold to convert to franchise locations or resold among franchisees. These moves aim to optimize capital allocation but underscore the company’s reliance on external financing and strategic partnerships to sustain growth.