FAT Brands Q3 Earnings Miss Estimates

FAT Brands Inc FAT reported third-quarter FY22 sales growth of 247% year-on-year, to $103.22 million, missing the consensus of $105.90 million.
System-wide sales increased 57% Y/Y. Year-to-date system-wide same-store sales grew 7.0% Y/Y.
General and administrative expenses increased 172% Y/Y to $28.7 million.
The operating margin was 1%, and operating income for the quarter declined 57.4% to $1 million.
Adjusted EBITDA for the quarter more than tripled to $24.6 million.
Adjusted EPS of $(0.98) missed the analyst consensus of $(0.85).
The company opened 38 new stores in Q3.
Andy Wiederhorn, CEO of FAT Brands, commented, "Looking ahead to 2023, we plan to continue this robust unit growth with over 130 units slated to open. Additionally, during the third quarter, we signed 180 new franchise agreements bringing our total pipeline to over 1,000 new locations which is expected to represent a 60% increase in EBITDA over the next several years."
Price Action: FAT shares closed higher by 0.93% at $7.03 on Thursday.