US-based franchising company FAT Brands has reported 35.9% increase in total revenues to $4.9m for the first quarter ending 31 March, compared to $3.6m for the same period in 2018.
The company currently owns Fatburger, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings and Ponderosa & Bonanza Steakhouses restaurant brands.
The franchise company reported a net loss of $710,000, $0.06 per share on a basic and fully diluted basis, compared to net income of $509,000 or $0.05 per share for the first quarter of prior year.
Adjusted EBITDA was $1.5m compared to $1.1m in the first quarter of last year, with system-wide same store sales of the company increasing by 1.3% year-over-year (y/y), with Fatburger brand registering worldwide same store sales growth of 1.8%, Buffalo’s Café 2.9%, Hurricane 4.2%, and Ponderosa/Bonanza 6.6%.
US same-store sales growth was 0.4% y/y, Canada 5.1% y/y, and other international including Puerto Rico was 9.1% y/y.
FAT Brands president and CEO Andy Wiederhorn said: “Results in the first quarter reflect continued strength of the Fatburger brand and improvements at the Hurricane brand, offset by softness at Ponderosa and Bonanza Steakhouses.
“During the quarter, we continued to execute our key strategic initiatives to drive same-store sales growth across our brands: third-party delivery, a remodel program, menu innovation including our preferred partnership with the provider of Impossible Burger, which we now offer in nearly all of our brands, and cross-selling brands to existing franchisees.
“Our pipeline for acquisitions remains robust, and we continue to seek synergistic opportunities where we can leverage our platform to drive efficiencies and growth.
“We are in the final stages of evaluating several acquisitions and expect to be able to announce an acquisition during the second quarter of this year.”
FAT Brands opened five new franchised stores during the quarter. with total count being 334 franchised stores and seven company-managed stores.