over-quarter revenue during the third quarter, but the results still trailed 2019’s third quarter.
The Beverly Hills-based company’s roster includes Johnny Rockets, Fatburger, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Ponderosa and Bonanza steakhouses, Elevation Burger, and Yalla Mediterranean.
FAT Brands generates revenue by charging franchisees an initial fee plus ongoing royalties. The company posted $4.1 million in revenue for the quarter that ended Sept. 27, a 31.6% increase from $3.1 million in the second quarter, but a 37% decline compared to the third quarter last year.
“These increases reflect the easing of shelter-in-place orders, phased reopening ... outdoor dining, strong to-go and delivery sales across our brands, and various initiatives we put in place to continue the positive trends around delivery,” Chief Executive Andy Wiederhorn told analysts during a Nov. 11 earnings call.
“We remain optimistic about our prospects, even during this global crisis as we’re focused on driving our organic growth by not only assisting our franchisees with their topline sales recovery, but also by opening (57) additional stores across our brands,” he added.
Some 141 restaurants out of FAT Brands’ 682 have closed during the pandemic, including 70 out of 322 Johnny Rockets locations, 14 out of 177 Fatburger stores, and 45 Ponderosa and Bonanza steakhouses.
“The (revenue) numbers we’re putting up are from the restaurants that are open,” Wiederhorn said. “That’s why there’s just tremendous opportunity to expand this year as we get the vaccine.”
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