Mission Statement, Vision, & Core Values (2024) of FAT Brands Inc. (FAT)

An Overview of FAT Brands Inc. (FAT)

General Summary of FAT Brands Inc. (FAT)

FAT Brands Inc. (FAT) is a well-established player in the restaurant industry, known for its diverse portfolio of restaurant concepts. Founded in 2017, the company has quickly expanded through strategic acquisitions and franchising. As of 2024, FAT Brands operates multiple restaurant brands, including Fatburger, Johnny Rockets, and the recently acquired Smokey Bones, which was added to their portfolio in September 2023.

FAT Brands offers a variety of products and services within the fast-casual dining sector. Their offerings range from gourmet burgers and sandwiches to a full-service casual dining experience. As of 2024, the company reported total sales of approximately $447.4 million, reflecting a significant increase compared to previous years, largely driven by the acquisition of Smokey Bones and the opening of new restaurant locations.

Company's Financial Performance in the Latest Financial Reports

FAT Brands has demonstrated strong financial performance in its latest financial reports for the third quarter of 2024. The company reported total revenue of $143.4 million for the quarter, marking a 31.1% increase from $109.4 million in the same period of 2023. This growth is attributed primarily to the acquisition of Smokey Bones and increased sales from newly opened restaurants.

In terms of costs, total expenses rose by 48.1% to $152.2 million in the third quarter, up from $102.7 million in the previous year. Major contributors to this increase included:

• General and administrative expenses, which increased by 41.0% to $34.5 million.
• Cost of restaurant and factory revenues, which surged 63.6% to $96.8 million.
• Depreciation and amortization, climbing 52.5% to $10.7 million.

Despite these increases in costs, the company's total revenue for the first three quarters of 2024 reached $447.4 million, a 39.0% increase from $321.8 million in the same period of 2023. However, FAT Brands recorded a net loss of $122.4 million for the first three quarters, compared to a net loss of $63.9 million in 2023. This reflects ongoing challenges in managing operational costs and interest expenses, which totaled $103.9 million for the first three quarters of 2024.

Introduction to Company as One of the Leaders in the Industry

FAT Brands has positioned itself as a leader in the restaurant industry by focusing on a robust growth strategy that includes both acquisitions and franchising. The company has successfully integrated its acquisitions, such as Smokey Bones, and has expanded its footprint with new restaurant openings. By leveraging its diverse brand portfolio, FAT Brands continues to attract a wide customer base across various demographics.

The company's strategic initiatives and growth trajectory suggest a promising future in the competitive landscape of the restaurant industry. Investors and stakeholders are encouraged to explore the underlying factors contributing to FAT Brands' success and its potential for continued growth in the market.

Mission Statement of FAT Brands Inc. (FAT)

Mission Statement of FAT Brands Inc. (FAT)

The mission statement of FAT Brands Inc. (FAT) serves as a guiding principle for the company, encapsulating its commitment to delivering high-quality food and exceptional service. It emphasizes the brand’s dedication to enhancing the customer experience while driving sustainable growth and profitability. This mission is crucial in steering the company towards its long-term goals and maintaining its competitive edge in the restaurant industry.

Core Component 1: Quality Products

FAT Brands is dedicated to providing high-quality products across its diverse portfolio of restaurant brands. The company ensures that its food offerings meet stringent quality standards, which is reflected in its sourcing and preparation processes. For example, FAT Brands has reported significant revenue growth, with total revenue increasing by $125.6 million, or 39.0%, in the first three quarters of 2024, reaching $447.4 million compared to $321.8 million in the same period of 2023. This growth is largely attributed to the acquisition of Smokey Bones and the introduction of new restaurant locations.

Core Component 2: Exceptional Customer Experience

FAT Brands prioritizes delivering an exceptional customer experience, which is central to its mission. The company continuously invests in enhancing its service quality and customer engagement across all its restaurant brands. This focus on customer satisfaction is evident in its strategic initiatives to expand its franchise network and improve operational efficiencies. The general and administrative expenses rose to $94.0 million in the first three quarters of 2024, reflecting the company's commitment to enhancing customer experiences through better staff training and restaurant management.

Core Component 3: Sustainable Growth

FAT Brands is committed to sustainable growth, which is integral to its mission statement. The company's expansion strategy includes acquiring new restaurant brands and opening additional locations. In fiscal year 2024, FAT Brands achieved a notable increase in its operational footprint, with significant investments in capital expenditures amounting to $22.2 million for property and equipment. The company also reported a net cash used in operating activities of $(45.8) million, highlighting ongoing investments in growth despite a net loss of $122.4 million for the period.

Vision Statement of FAT Brands Inc. (FAT)

Vision Statement of FAT Brands Inc. (FAT)

The vision of FAT Brands Inc. emphasizes its commitment to growth, innovation, and customer satisfaction within the restaurant industry. It aims to be a leader in the multi-brand restaurant sector by enhancing its portfolio and expanding its market presence.

1. Leadership in the Multi-Brand Restaurant Sector

FAT Brands aspires to be recognized as a top player in the multi-brand restaurant space, showcasing a diverse range of dining concepts. As of September 29, 2024, the company operates approximately 2,300 locations, with about 92% being franchised.

2. Focus on Innovation

Innovation is at the core of FAT Brands’ strategy, driving the development of new menu items and restaurant concepts. The company's recent acquisition of Smokey Bones in September 2023 is a testament to its commitment to expanding its brand offerings and enhancing customer experiences.

3. Commitment to Customer Satisfaction

FAT Brands aims to deliver exceptional dining experiences that foster customer loyalty. For the third quarter of 2024, total revenue increased by 31.1% to $143.4 million from $109.4 million in the same period of 2023, primarily due to higher sales at company-owned restaurants and new openings.

4. Sustainable Growth

FAT Brands is dedicated to sustainable growth through strategic acquisitions and franchising. The total revenue for the first three quarters of 2024 reached $447.4 million, marking a 39.0% increase compared to the same period in 2023. This growth is supported by a robust operational framework that prioritizes financial health and market expansion.

5. Expansion of Franchise Locations

The company is actively pursuing a worldwide expansion strategy for its franchise locations. As of September 29, 2024, FAT Brands had a significant pipeline of new openings, with plans to enhance its market presence globally.

With this strategic vision, FAT Brands Inc. positions itself for long-term success as a leader in the competitive restaurant landscape, focusing on innovation, customer satisfaction, and sustainable growth. The emphasis on enhancing its brand portfolio through acquisitions and expansions reflects the company's commitment to maintaining its competitive edge.

Core Values of FAT Brands Inc. (FAT)

Core Values of FAT Brands Inc. (FAT)

Integrity

Integrity is at the core of FAT Brands' operations, emphasizing honesty and transparency in all business dealings.

FAT Brands has demonstrated its commitment to integrity by implementing strict compliance measures and ethical guidelines across its franchises. In 2024, the company reported a total revenue of $447.4 million, a 39.0% increase from the previous year, reflecting its dedication to ethical growth and financial transparency.

Innovation

Innovation drives FAT Brands to continuously improve its menu offerings and restaurant experiences.

The acquisition of Smokey Bones in September 2023 is a prime example, enhancing the company's portfolio and expanding its market presence. This strategic move contributed significantly to the revenue growth, with restaurant sales increasing to $312.6 million in the first three quarters of 2024, up from $188.0 million in 2023.

Customer Focus

FAT Brands prioritizes customer satisfaction, tailoring its services and products to meet evolving consumer preferences.

The company has invested in customer feedback programs and menu innovations based on consumer trends. In 2024, advertising expenses increased by $3.5 million, highlighting the focus on marketing strategies that resonate with customers.

Community Engagement

Community engagement is a vital value for FAT Brands, fostering relationships with local communities.

In 2024, the company has undertaken various initiatives, including charity partnerships and local sponsorships. Such efforts not only enhance brand loyalty but also support local economies, as evidenced by the opening of 2,300 locations worldwide, with approximately 92% being franchised.

Excellence

Excellence is pursued through high standards in service, food quality, and operational efficiency.

FAT Brands reported a total costs and expenses increase of 55.3% to $460.3 million in 2024, primarily due to enhanced operational strategies that ensure superior service delivery.

Article updated on 8 Nov 2024

Resources:

• FAT Brands Inc. (FAT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FAT Brands Inc. (FAT)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View FAT Brands Inc. (FAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.