FAT Brands, Inc. (NASDAQ:FAT) Q3 2023 Earnings Conference Call October 26, 2023 4:30 PM ET
Company Participants
Andrew Wiederhorn - Founder and Chairman
Kenneth Kuick - CFO and Co-CEO
Conference Call Participants
Joseph Gomes - Noble Capital
Alton Stump - Loop Capital
Roger Lipton - Lipton Financial
Operator
Good afternoon, ladies and gentlemen. Welcome to the FAT Brands, Inc. Third Quarter 2023 Earnings Conference Call.
At this time all participants have been placed in a listen-only mode. [Operator Instructions] Please note that this conference is being recorded today, October 26, 2023.
On the call from FAT Brands are Chairman of the Board, Andy Wiederhorn and Co-Chief Executive Officer and Chief Financial Officer, Ken Kuick.
This afternoon, the company made its third quarter 2023 financial results publicly available. Please refer to the earning release and earnings supplement, both of which are available in the investor section of the company's website at www.fatbrands.com. Each contain additional details about the third quarter, which closed on September 24, 2023.
But before we begin, I must remind everyone that part of the discussion today will include forward-looking statements. These forward-looking statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. Actual results may differ materially from those indicated by these forward-looking statements due to a number of risks and uncertainties. The company does not undertake to update these forward-looking statements at a later date. For a more detailed discussion of the risks that could impact future operating results and financial condition, please see today's earnings release and recent SEC filings.
During today's call, the company will also discuss non-GAAP financial measures, which it believes can be useful in evaluating its performance. The presentation of this additional information should not be considered in isolation, nor as a substitute for results prepared in accordance with GAAP. Reconciliations to comparable GAAP measures are available in today's earnings release.
I would now like to turn the call over to Andy Wiederhorn, Chairman of the Board. Please go ahead.
Andrew Wiederhorn
Thank you, operator. We appreciate everyone joining us this afternoon. First and foremost, I would like to thank our teams, franchisees and their employees for their unwavering commitment and hard work that have resulted in the continued growth of FAT Brands.
Total revenue grew 6% to $109.4 million in the third quarter of 2023 compared to $103.2 million in the prior year third quarter. The increase was driven by a 4.8% increase in royalties, a 2% increase in company-owned restaurant revenues, a 228.5% increase in franchise fees and an 18.9% increase in revenues from our manufacturing facility.