The Beverly Hills, California-based company reported a fiscal fouth quarter December net loss of $2.7 million, or a loss of $0.23 per share on revenue of $5 million. Same-store sales in the US barely budged but Canada same-store sales expanded 3.5% with four new franchised store openings.
Shares in FAT Brands closed 7% lower to $5.30 on Tuesday.
“We continue to believe there is a massive opportunity to consolidate franchise brands onto the FAT Brands platform and our pipeline for potential accretive acquisitions is robust,” FAT Brands CEO Andrew Wiederhorn said in a call with analysts.
In evaluating acquisition targets, the CEO said the company continues to focus on categories that appeal to a broad international base of customers such as chicken, pizza, coffee, sandwiches and dessert.
“We look for authentic American brands that we can sell with credibility to both new and existing franchise partners around the world,” said Wiederhorn.
In December, FAT Brands announced the $3.5 million acquisition of Yalla Mediterranean, a Los Angeles-based chain of seven restaurants located in California that specializes in healthy Mediterranean cuisine. The company intends to sell the seven restaurants to franchisees.
It also completed the Hurricane acquisition in July, successfully incorporating all 58 restaurants into its platform.
FAT (Fresh. Authentic. Tasty.) Brands is a franchising company that currently operates more than 300 locations across six brands: Fatburger, Buffalo’s Café, Buffalo’s Express, Hurricane Grill & Wings as well as the Ponderosa and Bonanza Steakhouses.
Contact Uttara Choudhury at [email protected]