Fat Brands, Inc. Files 2023 Annual Report on Form 10-K
Ticker: FABTQ · Form: 10-K · Filed: Mar 12, 2024 · CIK: 1705012
| Field | Detail |
|---|---|
| Company | Fat Brands, INC (FABTQ) |
| Form Type | 10-K |
| Filed Date | Mar 12, 2024 |
| Risk Level | medium |
| Pages | 15 |
| Reading Time | 18 min |
| Key Dollar Amounts | $0.0001, $2.3 billion, $20,000, $50,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: Fat Brands, 10-K, Annual Report, Financials, Restaurant Industry
TL;DR
<b>Fat Brands, Inc. has submitted its annual 10-K filing for the fiscal year ending December 31, 2023.</b>
AI Summary
Fat Brands, Inc (FABTQ) filed a Annual Report (10-K) with the SEC on March 12, 2024. Fat Brands, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from December 26, 2022, to December 31, 2023. The company's principal business is RETAIL-EATING PLACES, SIC code 5812. Fat Brands, Inc. is incorporated in Delaware. The filing address is 9720 Wilshire Blvd., Suite 500, Beverly Hills, CA 90212.
Why It Matters
For investors and stakeholders tracking Fat Brands, Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Fat Brands' financial performance, operational activities, and risk factors for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. The detailed financial data and disclosures within the 10-K are essential for investors and analysts to understand the company's financial position, including its revenues, assets, and liabilities, as well as any potential risks it faces.
Risk Assessment
Risk Level: medium — Fat Brands, Inc shows moderate risk based on this filing. The company's financial disclosures are extensive, indicating a need for careful review of its financial health and operational risks, which are typical for a company in the restaurant industry.
Analyst Insight
Investors should carefully review the detailed financial statements and risk factors in the 10-K to understand Fat Brands' performance and potential challenges.
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Royalty | ||
| Restaurant Sales | ||
| Advertising | ||
| Franchisor |
Key Numbers
- 20231231 — Fiscal Year End (Conformed Period of Report)
- 20240312 — Filing Date (Filed As Of Date)
- 106 — Public Document Count (Document count)
- 001-38250 — SEC File Number (SEC File Number)
Key Players & Entities
- Fat Brands, Inc. (company) — Filer name
- 0001705012 (company) — Central Index Key
- 5812 (company) — Standard Industrial Classification
- DE (company) — State of Incorporation
- 9720 WILSHIRE BLVD., SUITE 500 (company) — Business Address
- BEVERLY HILLS (company) — City
- CA (company) — State
- 90212 (company) — ZIP Code
FAQ
When did Fat Brands, Inc file this 10-K?
Fat Brands, Inc filed this Annual Report (10-K) with the SEC on March 12, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by Fat Brands, Inc (FABTQ).
Where can I read the original 10-K filing from Fat Brands, Inc?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Fat Brands, Inc.
What are the key takeaways from Fat Brands, Inc's 10-K?
Fat Brands, Inc filed this 10-K on March 12, 2024. Key takeaways: Fat Brands, Inc. filed its 10-K report for the fiscal year ending December 31, 2023.. The filing covers the period from December 26, 2022, to December 31, 2023.. The company's principal business is RETAIL-EATING PLACES, SIC code 5812..
Is Fat Brands, Inc a risky investment based on this filing?
Based on this 10-K, Fat Brands, Inc presents a moderate-risk profile. The company's financial disclosures are extensive, indicating a need for careful review of its financial health and operational risks, which are typical for a company in the restaurant industry.
What should investors do after reading Fat Brands, Inc's 10-K?
Investors should carefully review the detailed financial statements and risk factors in the 10-K to understand Fat Brands' performance and potential challenges. The overall sentiment from this filing is neutral.
Risk Factors
- Goodwill and Intangible Asset Impairment [medium — financial]: The filing references accounting standards related to Goodwill and Intangible Asset Impairment.
- Assets Held For Sale [medium — financial]: The filing references accounting standards related to Assets Held For Sale Not Part Of Disposal Group Current.
- Operating Lease Right Of Use Asset Noncurrent [medium — financial]: The filing references accounting standards related to Operating Lease Right Of Use Asset Noncurrent.
Filing Stats: 4,458 words · 18 min read · ~15 pages · Grade level 13.5 · Accepted 2024-03-12 17:23:30
Key Financial Figures
- $0.0001 — stered Class A Common Stock, par value $0.0001 per share FAT The Nasdaq Stock Market L
- $2.3 billion — owned locations during fiscal 2023 were $2.3 billion. The FAT Brands Difference – Fresh. Au
- $20,000 — r an initial franchise fee ranging from $20,000 to $50,000 per store, and a typical roy
- $50,000 — l franchise fee ranging from $20,000 to $50,000 per store, and a typical royalty fee of
Filing Documents
- fat-20231231.htm (10-K) — 2037KB
- exhibit412-series2023x1sup.htm (EX-4.12) — 350KB
- a2023form10-kex415.htm (EX-4.15) — 41KB
- exhibit1022-clawbackpolicy.htm (EX-10.22) — 20KB
- a2023form10-kex211.htm (EX-21.1) — 19KB
- a2023form10-kex231.htm (EX-23.1) — 3KB
- a2023form10-kex232.htm (EX-23.2) — 2KB
- a2023form10-kex311.htm (EX-31.1) — 10KB
- a2023form10-kex312.htm (EX-31.2) — 10KB
- a2023form10-kex321.htm (EX-32.1) — 6KB
- fat-20231231_g1.jpg (GRAPHIC) — 5KB
- 0001628280-24-010647.txt ( ) — 11294KB
- fat-20231231.xsd (EX-101.SCH) — 85KB
- fat-20231231_cal.xml (EX-101.CAL) — 119KB
- fat-20231231_def.xml (EX-101.DEF) — 435KB
- fat-20231231_lab.xml (EX-101.LAB) — 952KB
- fat-20231231_pre.xml (EX-101.PRE) — 694KB
- fat-20231231_htm.xml (XML) — 1277KB
Business
Business 4 Item 1A
Risk Factors
Risk Factors 12 Item 1B Unresolved Staff Comments 25
Cybersecurity
Item 1C Cybersecurity 25 Item 2.
Properties
Properties 26 Item 3.
Legal Proceedings
Legal Proceedings 27 Item 4. Mine Safety Disclosures 29 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30 Item 6. [RESERVED] 31 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 7A.
Quantitative and Qualitative Disclosures about Market Risk
Quantitative and Qualitative Disclosures about Market Risk 39 Item 8.
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 39 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 39 Item 9A.
Controls and Procedures
Controls and Procedures 39 Item 9B. Other Information 40
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 40 PART III Item 10. Directors, Executive Officers and Corporate Governance 41 Item 11.
Executive Compensation
Executive Compensation 46 Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 51 Item 13. Certain Relationships and Related Transactions, and Director Independence 54 Item 14. Principal Accountant Fees and Services 56 PART IV Item 15. Exhibits, and Financial Statement Schedules 57 Item 16. Form 10-K Summary 57 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained herein and certain statements contained in future filings by the Company with the SEC may not be based on historical facts and are "Forward-Looking Statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this Form 10-K may be forward-looking statements. Statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding expected new franchisees, brands, store openings and future capital expenditures are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond our control, which could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. These and other risks, uncertainties and contingencies are described in this Annual Report on Form 10-K, including under "Item 1A. Risk Factors," and the oth
BUSINESS
ITEM 1. BUSINESS FAT Brands Inc. is a leading multi-brand restaurant company that develops, markets, acquires and manages quick service, fast casual, casual dining and polished casual dining restaurant concepts around the world. We operate primarily as a franchisor of restaurants, where we generally do not own or operate the restaurant locations but rather generate revenue by charging franchisees an initial franchise fee as well as ongoing royalties. This "asset light" franchisor model provides us with the opportunity for strong profit margins and an attractive free cash flow profile while minimizing restaurant operating company risk, such as long-term real estate commitments or capital investments. For some of our brands, we also directly own and operate restaurant locations in addition to franchising restaurants. Our scalable management platform enables us to add new stores and restaurant concepts to our portfolio with minimal incremental corporate overhead cost, while taking advantage of significant corporate overhead synergies. The expansion of our existing brands as well as the acquisition of additional brands and restaurant concepts are key elements of our growth strategy. In addition to our restaurant operations, we own and operate a manufacturing and production facility in Atlanta, Georgia, which supplies our franchisees with cookie dough, pretzel dry mix and other ancillary products. As of December 31, 2023, our franchisee base consisted of approximately 790 franchisees, who operated an aggregate of approximately 2,300 restaurants, including restaurants under construction. Additionally, we directly owned and operated approximately 190 restaurants as of such date. System wide sales of our franchised and owned locations during fiscal 2023 were $2.3 billion. The FAT Brands Difference – Fresh. Authentic. Tasty. Our name represents the values that we embrace as a company and the food that we provide to customers – F resh. A uthentic. T asty (which we refe