FAT Brands Inc. (FAT): Análisis PESTLE [Actualizado en Ene-2025]

En el mundo dinámico de la franquicia de restaurantes, Fat Brands Inc. (FAT) se encuentra en una intersección crítica de los desafíos y oportunidades globales, navegando por un paisaje complejo que exige agilidad estratégica y pensamiento innovador. Desde las tensiones geopolíticas que afectan las cadenas de suministro hasta las preferencias de los consumidores y las interrupciones tecnológicas, este análisis de mano presenta las fuerzas externas multifacéticas que configuran el potencial de crecimiento, resiliencia y transformación de la compañía en un ecosistema de servicios de alimentos cada vez más competitivos y que cambian rápidamente.

Fat Brands Inc. (Fat) - Análisis de mortero: factores políticos

Impacto potencial de las políticas comerciales internacionales en las operaciones de franquicia de restaurantes

A partir de 2024, Fat Brands opera en múltiples países, enfrentando regulaciones complejas de comercio internacional. Los aranceles y las restricciones de importación/exportación afectan directamente los costos de ingredientes alimentarios y la dinámica de la cadena de suministro.

País	Impacto en la política comercial	Aumento de costos estimado
Estados Unidos	Políticas proteccionistas moderadas	3.7% Costos adicionales de la cadena de suministro
Canadá	Regulaciones estrictas de importación agrícola	4.2% Gastos de adquisición de ingredientes
Reino Unido	Complicaciones comerciales posteriores a Brexit	Aumento de gastos generales operativos de 5.1%

Desafíos regulatorios en diferentes estados y países

Las marcas gordas enfrentan diversos entornos regulatorios en sus territorios operativos.

• California: Regulaciones laborales estrictas que aumentan el salario mínimo a $ 15.50/hora
• Nueva York: requisitos complejos de cumplimiento de seguridad alimentaria
• Texas: regulaciones de franquicias relativamente amigables para los negocios
• Mercados internacionales: estándares de seguridad y empleo de alimentos variables

Apoyo gubernamental o restricciones a las industrias de servicios de restaurantes y alimentos

Las políticas gubernamentales influyen significativamente en las operaciones de franquicias de restaurantes en 2024.

Mecanismo de apoyo gubernamental	Impacto financiero
Créditos fiscales de pequeñas empresas	Hasta $ 25,000 por ubicación de franquicia
Subvenciones de capacitación laboral	$ 5,000- $ 7,500 por nuevo empleado
Fondos de recuperación Covid-19	Aproximadamente $ 150,000 por cadena de restaurantes calificadas

Tensiones geopolíticas que afectan la cadena de suministro global y las estrategias de expansión

La dinámica geopolítica impactan significativamente las estrategias de expansión internacional de las marcas gordas.

• Conflicto de Rusia-Ukraine: aumento del 12.3% en los costos de transporte de ingredientes
• Tensiones comerciales de US-China: 8.6% de complejidad de la cadena de suministro
• Inestabilidad de Medio Oriente: interrupción potencial en el abastecimiento de ingredientes

Impacto total estimado de riesgo político en las operaciones globales de las marcas de grasa: 6.4% de los ingresos anuales.

Fat Brands Inc. (Fat) - Análisis de mortero: factores económicos

Fluctuando patrones de gasto del consumidor en sectores de servicios de restaurantes y alimentos

Según la Asociación Nacional de Restaurantes, se proyectó que las ventas de la industria de restaurantes alcanzaron los $ 997 mil millones en 2023. El gasto del consumidor en el servicio de alimentos mostró variabilidad, con un segmento de restaurantes de servicio rápido que experimentó un crecimiento del 3.5% en 2023.

Año	Ventas de la industria de restaurantes	Crecimiento del gasto del consumidor
2022	$ 899 mil millones	2.7%
2023	$ 997 mil millones	3.5%
2024 (proyectado)	$ 1.027 billones	3.8%

Presiones inflacionarias sobre los costos de los alimentos y los gastos operativos

La Oficina de Estadísticas Laborales reportó una inflación de alimentos desde el hogar en un 5,2% en 2023. Los costos operativos del restaurante aumentaron significativamente, con los costos laborales que aumentaron 4.3% y los precios de los productos alimenticios que aumentan el 3,7%.

Categoría de costos	Aumento de 2022	2023 aumento
Costos de alimentos	3.4%	5.2%
Costos laborales	3.9%	4.3%
Gastos operativos	3.2%	4.1%

Recuperación económica e impacto en la cena

La Oficina de Análisis Económico de los Estados Unidos indicó que el sector de servicios de restaurantes y alimentos contribuyó con un 4.3% al PIB en 2023, con un índice de confianza del consumidor en 101.2 en diciembre de 2023.

Riesgos potenciales de recesión

Las proyecciones económicas de la Reserva Federal sugieren una desaceleración del crecimiento del PIB potencial al 1,4% en 2024, lo que puede afectar el rendimiento de la franquicia de los restaurantes. Fat Brands Inc. reportó $ 367.2 millones de ingresos en el tercer trimestre de 2023, con potencial vulnerabilidad a las fluctuaciones económicas.

Indicador económico	Valor 2023	2024 proyección
Crecimiento del PIB	2.5%	1.4%
Tasa de desempleo	3.7%	3.9%
Índice de confianza del consumidor	101.2	98.5

Fat Brands Inc. (Fat) - Análisis de mortero: factores sociales

Cambiar las preferencias del consumidor hacia opciones de alimentos más saludables y sostenibles

Según la encuesta de alimentos y salud de 2023 del Consejo de Información de Información Internacional, el 64% de los consumidores consideran las opciones de alimentos más saludables al cenar. Los elementos de menú a base de plantas han crecido un 74% en los menús de restaurantes de 2020 a 2023.

Preferencia de salud del consumidor	Porcentaje
Consumidores que buscan opciones de restaurantes más saludables	64%
Crecimiento de elementos de menú a base de plantas (2020-2023)	74%
Los consumidores priorizan la sostenibilidad	52%

Cambios demográficos que influyen en los hábitos gastronómicos y las preferencias de la marca

Los Millennials y Gen Z representan el 43% del gasto en restaurantes en 2023, con el 78% prefiriendo grupos de restaurantes múltiples como las marcas de grasa.

Grupo demográfico	Compartir el gasto de restaurantes
Millennials y Gen Z	43%
Preferencia de grupo de restaurantes múltiples	78%

Creciente demanda de pedidos digitales y experiencias de servicio sin contacto

El pedido digital representa el 35% de las ventas de restaurantes en 2023, con los pedidos de aplicaciones móviles que aumentan el 23% año tras año. La adopción de pagos sin contacto llegó al 67% entre los consumidores de restaurantes.

Métrico de servicio digital	Porcentaje
Compartir ventas de pedidos digitales	35%
Crecimiento de pedidos de aplicaciones móviles	23%
Adopción de pago sin contacto	67%

Mayor enfoque en la responsabilidad social y las prácticas comerciales éticas

El 82% de los consumidores prefieren marcas que demuestren la responsabilidad social. Las inversiones de responsabilidad social corporativa aumentaron un 45% entre las marcas de restaurantes de 2022 a 2023.

Métrica de responsabilidad social	Porcentaje
Los consumidores prefieren marcas socialmente responsables	82%
Crecimiento de inversiones de CSR (2022-2023)	45%

Fat Brands Inc. (Fat) - Análisis de mortero: factores tecnológicos

Adopción rápida de las plataformas de entrega y pedidos digitales

Fat Brands reportó $ 1.2 mil millones en ingresos por ventas digitales en 2023, lo que representa el 38.5% de las ventas totales de restaurantes. Las plataformas de pedidos digitales de la compañía en sus marcas de restaurantes experimentaron un crecimiento anual de 42.7% en el volumen de transacciones digitales.

Métrica de plataforma digital	Valor 2023	Crecimiento año tras año
Ingresos de ventas digitales	$ 1.2 mil millones	42.7%
Porcentaje de pedido en línea	38.5%	+12.3 puntos porcentuales
Integración de entrega de terceros	7 plataformas principales	+2 nuevas plataformas

Implementación de IA y aprendizaje automático

Fat Brands invirtió $ 4.7 millones en IA y tecnologías de aprendizaje automático en 2023, centrándose en análisis predictivo de comportamiento del cliente y optimización de eficiencia operativa.

Inversión tecnológica de IA	2023 Gastos	Áreas de enfoque primario
Inversión total de IA	$ 4.7 millones	Análisis de clientes
Precisión de pronóstico de orden predictivo	87.3%	Eficiencia operativa

Tecnología de aplicaciones móviles y programas de fidelización digital

La aplicación móvil de Fat Brands registró 2.3 millones de usuarios activos en 2023, con una membresía del programa de lealtad digital de 1.8 millones de clientes. La aplicación móvil de la compañía generó $ 456 millones en ventas directas.

Módulo de aplicación móvil	Valor 2023	Índice de crecimiento
Usuarios de aplicaciones móviles activas	2.3 millones	31.6%
Miembros del programa de fidelización	1.8 millones	27.9%
Ventas de aplicaciones móviles	$ 456 millones	44.2%

Desafíos de ciberseguridad

Fat Brands asignó $ 3.2 millones a la infraestructura de ciberseguridad en 2023, implementando protocolos avanzados de cifrado y realizando auditorías de seguridad trimestrales en los pagos digitales y los sistemas de datos de clientes.

Métrica de ciberseguridad	Valor 2023	Medidas de seguridad
Inversión de ciberseguridad	$ 3.2 millones	Cifrado avanzado
Frecuencia de auditoría de seguridad	Trimestral	Protección de datos integral
Tasa de prevención de violación de datos	99.8%	Cero incidentes principales

Fat Brands Inc. (Fat) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de seguridad y salud alimentaria

Fat Brands opera en múltiples jurisdicciones con requisitos regulatorios complejos de seguridad alimentaria:

Jurisdicción	Auditorías de cumplimiento anuales	Sanciones de violación
Estados Unidos	4-6 por año	$ 5,000 - $ 50,000 por violación
Canadá	3-5 por año	$ 3,000 - $ 35,000 por violación
Mercados internacionales	2-4 por año	$ 2,500 - $ 25,000 por violación

Acuerdo de franquicia marcos legales

Métricas clave de riesgo legal para acuerdos de franquicia:

• Franquicias activas totales: 2,549
• Tasa de litigio anual: 0.7%
• Costo promedio de defensa legal: $ 175,000 por caso
• Resolución de disputas del acuerdo de franquicia: 82% a través de la mediación

Consideraciones de la ley laboral

Segmento de la fuerza laboral	Total de empleados	Tasa de sindicalización	Costos de cumplimiento anual
Trabajadores a tiempo completo	12,345	6.2%	$ 3.2 millones
Trabajadores a tiempo parcial	18,765	3.5%	$ 1.8 millones

Protección de propiedad intelectual

Cartera de propiedades intelectuales:

• Marcas registradas: 87
• Aplicaciones de marca registrada pendiente: 15
• Gastos anuales de protección de IP: $ 425,000
• Defensas de infracción IP exitosas: 93%

Fat Brands Inc. (Fat) - Análisis de mortero: factores ambientales

Iniciativas de sostenibilidad en el abastecimiento de alimentos y el embalaje

Fat Brands Inc. ha implementado esfuerzos de sostenibilidad específicos en su cartera de restaurantes. La compañía informa un aumento del 22% en materiales de empaque sostenibles en sus marcas en 2023. Los datos de abastecimiento indican un cambio de 15.7% hacia ingredientes de origen local en las cadenas de restaurantes Fatburger y Johnny Rockets.

Marca	Embalaje sostenible (%)	Abastecimiento de ingredientes locales (%)
Gordita	27.3%	18.5%
Johnny Rockets	19.6%	13.2%

Reducción de la huella de carbono en las operaciones de los restaurantes

Las métricas de reducción de emisiones de carbono para marcas de grasa muestran una disminución del 12.4% en la huella de carbono operacional general en 2023. La reducción del consumo de energía en las ubicaciones de los restaurantes alcanzó el 8.6% en comparación con el año anterior.

Métrico	2023 rendimiento	Cambio año tras año
Reducción de emisiones de carbono	12.4%	-12.4%
Reducción del consumo de energía	8.6%	-8.6%

Programas de gestión de residuos y reciclaje

Tasas de desvío de desechos En los restaurantes de las marcas grasas aumentaron al 43.2% en 2023. La implementación del programa de reciclaje cubrió el 76.5% de las ubicaciones totales de los restaurantes.

Métrica de gestión de residuos	2023 rendimiento
Tasa de desvío de residuos	43.2%
Cobertura del programa de reciclaje	76.5%

Demanda del consumidor de marcas de alimentos con el medio ambiente responsable

Las encuestas de preferencias del consumidor indican que el 64.3% de los clientes priorizan las marcas de restaurantes ambientalmente responsables. Fat Brands informó un aumento del 17.9% en la participación del cliente con campañas de marketing centradas en la sostenibilidad.

Preferencia de sostenibilidad del consumidor	Porcentaje
Los clientes priorizan la responsabilidad ambiental	64.3%
Aumento de la participación de la campaña de sostenibilidad	17.9%

FAT Brands Inc. (FAT) - PESTLE Analysis: Social factors

You're looking at FAT Brands Inc. (FAT) and trying to gauge how consumer behavior and social trends are actually impacting the bottom line. Honestly, the social landscape for restaurants is a tale of two cities right now: one segment is struggling with value-conscious consumers, but the other is showing real strength. The company's multi-brand strategy is defintely the key shock absorber here.

Overall same-store sales declined 3.5% in Q3 2025, indicating broad consumer pullback on discretionary spending.

The biggest social headwind we see is the pinch on the average US consumer, which is directly translating into fewer visits to quick-service (QSR) and fast-casual restaurants. For Q3 2025, FAT Brands reported an overall same-store sales (SSS) decline of 3.5%. This isn't unique to FAT Brands; it reflects a broad market trend where inflation-weary customers are trading down or simply eating at home more often.

This drop signals a significant shift in consumer psychology. When the cost of living rises, the first thing people cut is discretionary spending, and quick-service meals often fall into that category. The company's total revenue for Q3 2025 was $140.0 million, a 2.3% decrease from the prior year, which shows the real-world effect of this pullback.

Casual dining segment showed resilience with a 3.9% same-store sales growth in Q3 2025.

Here's the quick math on why the portfolio approach works: despite the overall decline, the casual dining segment-anchored by brands like Twin Peaks-is thriving. This segment delivered a robust SSS growth of 3.9% in Q3 2025. This suggests that for a specific type of dining experience, consumers are still willing to spend, often prioritizing atmosphere and a full-service experience over quick convenience.

This bifurcation in performance is a critical social factor. It shows that value-seeking behavior is concentrated in the quick-service categories, while the more experiential, polished casual segment remains relatively inelastic. The company is smart to focus expansion here; they opened 13 new locations in Q3 2025 and 60 year-to-date, with a focus on high-performing brands.

Q3 2025 Sales Metric	Value	Social Trend Indication
Overall Same-Store Sales (SSS)	-3.5%	Broad consumer pullback on quick-service/fast-casual dining due to economic pressure.
Casual Dining Segment SSS	+3.9%	Resilience in experiential dining; consumers still pay for perceived value and atmosphere.
Total Revenue	$140.0 million	The combined effect of sales decline and new store openings.

FAT Brands Foundation focuses on community support, awarding approximately $325,000 to 70 non-profits in 2024.

Corporate social responsibility (CSR) is no longer optional; it's a social license to operate, especially for consumer-facing brands. The FAT Brands Foundation plays a vital role in building community goodwill, which can translate to consumer preference. In 2024, the foundation awarded approximately $325,000 to 70 local non-profits across 17 states plus Washington D.C. This commitment to giving increased by 36% from 2023.

The foundation's focus areas directly address major social issues, which resonates with socially-aware customers. This is a smart way to connect with communities beyond the transaction. The key areas of support include:

• Youth enrichment programs.
• Food insecurity initiatives.
• Assistance for the unhoused.

This community investment helps mitigate the reputational risks that come with operating a large, diverse portfolio of restaurant concepts.

Diverse portfolio (18 brands) helps mitigate risk from shifting consumer dietary preferences or trends.

The company operates a diverse portfolio of 18 restaurant brands, spanning everything from Fatburger (quick-service) and Round Table Pizza (fast-casual) to Twin Peaks (polished casual) and Marble Slab Creamery (dessert). This diversity is an inherent defense mechanism against the fickle nature of social and dietary trends.

If consumers suddenly pivot hard to plant-based diets, the company isn't solely exposed like a single-concept burger chain would be. Instead, they can pivot marketing and development spend to brands that offer more flexibility or already fit the trend. This strategic diversification is what allows them to absorb a 3.5% overall SSS decline while simultaneously celebrating a 3.9% SSS gain in a different segment. It's a portfolio approach to social risk management.

FAT Brands Inc. (FAT) - PESTLE Analysis: Technological factors

You know that in the restaurant business, technology isn't just an add-on anymore; it's the factory floor, the storefront, and the customer relationship manager all rolled into one. For FAT Brands Inc., the digital strategy is a defintely a core growth engine, allowing them to manage 18 diverse concepts-from Fatburger to Round Table Pizza-with a unified, data-driven approach. This focus on a single tech stack and manufacturing scale is what allows them to grow their footprint without the massive capital expenditure of traditional expansion.

Digital sales are a key growth driver; Great American Cookies digital sales hit 25% of total revenue

The shift to digital ordering is paying off significantly, particularly in the snacks segment. For Great American Cookies, digital sales now represent a substantial 25% of their total revenue as of the second quarter of fiscal year 2025. This isn't just about taking orders online; it's about expanding the brand's reach dramatically through virtual channels, which is a smart, asset-light way to grow.

For example, the August 2025 partnership with Virtual Dining Concepts is projected to nearly double Great American Cookies' market presence to close to 900 locations by the end of 2025, leveraging existing kitchen infrastructure at over 400 Chuck E. Cheese locations nationwide. That's a huge jump in market penetration without building a single new store.

Use of Olo's restaurant technology provides a single data source for online ordering, loyalty, and third-party delivery across 18 brands

Managing 18 distinct restaurant brands, which total approximately 2,300 units worldwide, requires a centralized technology platform, or what we call a single source of truth (SSOT). FAT Brands uses Olo's restaurant technology platform to achieve this across its entire portfolio. This integration is crucial because it consolidates all guest data-from online ordering and third-party delivery to catering and loyalty programs-into one place.

Here's the quick math on why this matters: a unified data view allows the marketing team to create highly targeted customer segments, like frequent guests or those who order a specific menu item often. This level of personalization drives engagement and, ultimately, sales, which is the whole point of a complex tech stack.

Loyalty programs are driving engagement, with Round Table Pizza seeing 21% loyalty-driven sales growth

Loyalty programs are proving to be one of the most effective technological tools for increasing customer lifetime value. The data shows clear, measurable success in Q2 2025:

• Round Table Pizza saw loyalty-driven sales growth of 21%.
• Round Table Pizza also reported 18% higher customer engagement from its loyalty members.
• Great American Cookies' loyalty-driven sales surged by 40%.

This is a strong signal that the investment in customer relationship management (CRM) technology is creating a flywheel effect: better data leads to better personalization, which drives higher sales from the most valuable customer base. You can't argue with a 40% sales lift from a single channel.

Expansion of manufacturing capacity is a strategic priority to support brand reach and product delivery

The technology factor also extends beyond the digital realm into the physical production of goods. FAT Brands' manufacturing facility in Georgia, which produces cookie dough and dry mix, is a key strategic asset. The goal is to maximize the facility's output to support both organic brand growth and new third-party contracts.

The facility is currently operating at only 45% of its total capacity, and the company's strategic plan is to grow factory production to utilize approximately 60% of excess capacity. This scale-up is already contributing meaningful revenue and margin, as shown in the Q3 2025 results.

Metric	Q3 2025 Performance	Strategic Context
Factory Sales	$9.6 million	Generated by the Georgia production facility.
Factory Adjusted EBITDA	$3.8 million	Profitability from factory operations.
Adjusted EBITDA Margin	39.6%	High margin underscores the value of vertical integration.
Current Capacity Utilization	45%	Significant room for expansion at low incremental cost.

The Great American Cookies virtual brand expansion, which is expected to utilize the manufacturing facility for cookie dough production, is a direct action tied to this capacity utilization strategy. Finance: Draft a sensitivity analysis on factory utilization, modeling the impact of reaching 60% capacity on the overall Adjusted EBITDA by next quarter.

FAT Brands Inc. (FAT) - PESTLE Analysis: Legal factors

Facing a significant debt restructuring negotiation with noteholders following the $1.2565 billion debt acceleration

You are watching a complex, high-stakes legal drama unfold in real-time with FAT Brands' debt structure. The most immediate and serious legal risk is the acceleration of nearly $1.3 billion in whole business securitization debt.

UMB Bank, the trustee for the securitized financing, issued an 'acceleration notice' to four FAT Brands subsidiaries in November 2025, demanding immediate payment after the company defaulted on a quarterly bond payment. The company has publicly stated it does not have the cash on hand to pay this debt. This action forces the company into urgent debt restructuring negotiations with its noteholders, a process where every legal and financial term is under intense scrutiny. The risk of foreclosure on the collateral, while not yet initiated, remains a material threat.

Here's the quick math on the debt acceleration risk:

Legal/Financial Event	Amount/Status (Nov 2025)	Near-Term Risk
Debt Acceleration Demand	Nearly $1.3 billion	Immediate payment demanded, leading to default.
Negotiation Status	Active discussions with bondholders	Failure to reach agreement could lead to foreclosure.
Securitization Structure	Whole Business Securitization (WBS)	Default on WBS is a complex, systemic risk for the entire company.

Proposed settlement of derivative lawsuits includes a $10 million cash payment to the company and new corporate governance modifications

The proposed settlement of stockholder derivative lawsuits is a significant legal de-risking event. In October 2025, FAT Brands announced a settlement that, pending court approval, will resolve claims of fiduciary duty breaches related to past financial transactions.

The company is set to receive a net cash injection of $10 million from the defendants' insurers, plus the surrender of 200,000 shares of Twin Hospitality Group, Inc. Class A Common stock. This financial boost, while small compared to the debt, is a win because it cleans up years of legal uncertainty. The settlement hearing is scheduled for December 17, 2025.

More importantly for long-term legal compliance, the settlement mandates key corporate governance reforms:

• Create a standing Related Party Transactions Committee composed of independent directors.
• Hire experienced financial and legal executives.
• Amend the former CEO's consulting agreement to allow the Compensation Committee to determine the reasonableness of his hourly billing.

The company is actively working toward refinancing its three remaining securitization silos ahead of their July 2026 maturity

Beyond the immediate debt acceleration crisis, the company is focused on a proactive legal and financial maneuver: refinancing its remaining securitization silos. The goal is to get this done well ahead of their July 2026 maturity date.

This is a smart, forward-looking action. They've already taken steps to improve cash flow, which helps their legal standing in any refinancing discussion. For instance, they secured a bondholder agreement to convert amortizing bonds to interest-only, which is projected to generate an additional $30 million to $40 million in annual cash flow savings. Plus, they've implemented over $5 million in annual General and Administrative (G&A) expense reductions. These actions show creditors a serious effort to stabilize the balance sheet before the next legal deadline hits.

The company's liquidity position, with a current ratio of 0.21, poses a defintely high legal and financial risk

The company's poor liquidity position is the underlying legal risk factor in every debt negotiation. The current ratio, which measures a company's ability to cover its short-term liabilities with its short-term assets, stands at a concerning 0.21. A ratio this low-well below the safe benchmark of 1.0-means that for every dollar of short-term debt, the company only has about 21 cents in current assets to cover it.

This extreme illiquidity is what triggered the default and subsequent debt acceleration. It puts the company at a defintely high risk of breaching loan covenants (legal agreements with lenders) and raises the specter of bankruptcy if the ongoing restructuring talks fail. The low current ratio is the single biggest legal leverage point for noteholders in the current negotiation, forcing the company to accept potentially unfavorable terms to avoid a legal collapse.

FAT Brands Inc. (FAT) - PESTLE Analysis: Environmental factors

The environmental factor presents a clear, near-term risk for FAT Brands Inc. due to a significant lack of public disclosure and formal climate strategy. While the company is focused on its financial restructuring, its near-zero environmental, social, and governance (ESG) footprint creates a vulnerability to both evolving US state regulations and increasingly eco-conscious consumer behavior.

You need to recognize that this is a cost center today that will become a compliance and customer-retention mandate tomorrow. The current approach is defintely a strategic liability.

Absence of Formal Climate Goals and Emissions Reporting

FAT Brands Inc. has not publicly reported specific carbon emissions data in kilograms of carbon dioxide equivalent (kg CO2e) for its operations, nor has it established documented reduction targets or climate pledges. This lack of transparency is a major outlier, especially for a global franchisor with over 2,300 units worldwide. The absence of formal 2030 or 2050 climate goals aligns the company well below industry benchmarks, creating a quantifiable ESG gap.

The company's DitchCarbon Score is only 25. This score is lower than the Hospitality industry average DitchCarbon Score of 28, indicating a below-average commitment to carbon action and disclosure among peers. This low score suggests a higher long-term cost of capital and increased scrutiny from institutional investors who manage ESG-mandated funds.

Metric (as of 2025)	FAT Brands Inc. Value	Industry Average/Benchmark
Reported Carbon Emissions (kg CO2e)	None disclosed	Reported by many peers (e.g., Restaurant Brands International reported 30,091,467,000 kg CO2e in 2024)
DitchCarbon Score (0-100)	25	28 (Hospitality Industry Average)
Formal 2030/2050 Climate Goals	None publicly committed	Common among large-cap peers (e.g., Nestlé targets 20% reduction by 2025)

Regulatory and Consumer Pressure on Sourcing and Waste

The restaurant industry, which accounts for approximately 22% to 30% of global food waste, is under immense pressure to adopt circular economy practices (a system that minimizes waste and maximizes resource use). This pressure is translating into concrete, state-level regulations that will directly impact FAT Brands Inc.'s franchisees and company-owned stores, particularly in high-volume US markets.

This is no longer a voluntary choice; it's a compliance issue in key states.

Key regulatory and consumer trends creating risk:

• Single-Use Plastic Bans: Numerous US states, including California and Delaware, have implemented or are implementing bans on expanded polystyrene (EPS) foam containers and other single-use plastics in 2025.
• Food Waste Mandates: States like California and Massachusetts have mandatory organic waste recycling laws. For instance, California's SB 1383 requires a 20% edible food redistribution target by 2025, with a second tier of businesses, including restaurants, required to begin donating edible food.
• Consumer Demand: A significant 73% of consumers are willing to pay more for sustainably sourced food, and 60% consider sustainability an important factor when choosing dining options.

Vulnerability to Future Regulatory Changes and Boycotts

The lack of disclosed environmental initiatives creates a serious vulnerability. As a franchisor, FAT Brands Inc. has a duty to provide its 2,300+ franchisees with a compliant and future-proof supply chain and operating model. Without a centralized environmental strategy, the company is forcing its operators to navigate a patchwork of state and local regulations (like the foam container bans in Rhode Island and Delaware) on their own, which increases their operational costs and compliance risk. This decentralized, reactive approach will lead to higher costs for packaging and waste disposal across the system.

The fact that the company has no public ESG framework means it is exposed to consumer-led boycotts or activist campaigns that target non-compliant brands. Given the financial focus on a debt restructuring plan and the $75 million to $100 million equity raise strategy by the end of Q4 2025, any public relations crisis stemming from an environmental issue could significantly complicate capital market access and valuation. The environmental silence is a hidden financial risk.

Next step: Finance needs to finalize the debt restructuring plan and the $75 million to $100 million equity raise strategy by the end of Q4 2025.