Restaurant operator FAT Brands has posted a net loss of $7.1m for the second quarter of 2023, compared to a net loss of $8.2m a year ago.
The company’s adjusted net income for the quarter was $3m compared to an adjusted net loss of $3.1m in the same period a year ago.
For the quarter ended 25 June 2023, total revenue was $106.8m, an increase of 4% compared to $102.8m last year’s quarter.
The restaurant operator attributed the growth to a 5% increase in royalties, a 4.6% growth in company-owned restaurant revenues, and a 13% rise in revenues from its manufacturing facility.
During the quarter, FAT Brands registered system-wide sales growth of 1.7% compared with the previous year’s quarter.
The company reported year-to-date system-wide same-store sales growth of 1.9% against the same period a year ago.
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The company noted that it opened 25 new stores in the second quarter of the year.
FAT Brands adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was $23.1m, compared to $29.5m in the fiscal second quarter of 2022.
FAT Brands chairman Andy Wiederhorn said: “In the last several years, we grew the FAT Brands portfolio to 17 iconic restaurant brands with approximately 2,300 units and annual system-wide sales of $2.2bn.
“Year to date, we have opened 66 restaurants, including 25 that opened in the second quarter and remain on track to open 175 new restaurants in 2023, representing 25% unit expansion year over year.
“We are seeing strong new franchisee activity as well as continued demand from existing franchise partners to develop other brands within our portfolio.”