Fat Brands Inc. (FAT): Analyse du Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique du franchisage des restaurants, Fat Brands Inc. (FAT) se dresse à une intersection critique de défis et d'opportunités mondiales, naviguant dans un paysage complexe qui exige une agilité stratégique et une pensée innovante. Des tensions géopolitiques ayant un impact sur les chaînes d'approvisionnement à l'évolution des préférences des consommateurs et des perturbations technologiques, cette analyse des pilons dévoile les forces externes à multiples facettes qui façonnent le potentiel de croissance, de résilience et de transformation de plus en plus compétitifs et en évolution rapide.

Fat Brands Inc. (FAT) - Analyse du pilon: facteurs politiques

Impact potentiel des politiques commerciales internationales sur les opérations de franchise de restaurants

En 2024, les marques de graisse opère dans plusieurs pays, confrontées à des réglementations complexes du commerce international. Les tarifs et les restrictions d'importation / d'exportation ont un impact direct sur les coûts des ingrédients alimentaires et la dynamique de la chaîne d'approvisionnement.

Pays	Impact de la politique commerciale	Augmentation des coûts estimés
États-Unis	Politiques protectionnistes modérées	3,7% de coûts de chaîne d'approvisionnement supplémentaires
Canada	Règlements sur les importations agricoles strictes	4,2% des frais d'approvisionnement en ingrédient
Royaume-Uni	Complications commerciales post-Brexit	Augmentation des frais généraux opérationnels de 5,1%

Défis réglementaires dans différents États et pays

Les marques grasses sont confrontées à divers environnements réglementaires à travers ses territoires opérationnels.

• Californie: réglementation stricte du travail augmentant le salaire minimum à 15,50 $ / heure
• New York: Exigences complexes de conformité en matière de sécurité alimentaire
• Texas: Règlement sur les franchises relativement adaptées aux entreprises
• Marchés internationaux: diverses normes de sécurité alimentaire et d'emploi

Soutien du gouvernement ou restrictions sur les industries des restaurants et des services alimentaires

Les politiques gouvernementales influencent considérablement les opérations de franchise des restaurants en 2024.

Mécanisme de soutien du gouvernement	Impact financier
Crédits d'impôt pour les petites entreprises	Jusqu'à 25 000 $ par emplacement de franchise
Subventions de formation à l'emploi	5 000 $ - 7 500 $ par nouvel employé
Fonds de récupération Covid-19	Environ 150 000 $ par chaîne de restaurants qualifiés

Tensions géopolitiques affectant la chaîne d'approvisionnement mondiale et les stratégies d'expansion

La dynamique géopolitique a un impact significatif sur les stratégies d'expansion internationales des marques de graisse.

• Conflit de la Russie-Ukraine: augmentation de 12,3% des coûts de transport des ingrédients
• Tensions commerciales américaines-chinoises: 8,6% de complexité de la chaîne d'approvisionnement
• Instabilité du Moyen-Orient: perturbation potentielle de l'approvisionnement en ingrédients

Impact total des risques politiques estimés sur les opérations mondiales des graisses: 6,4% des revenus annuels.

Fat Brands Inc. (FAT) - Analyse du pilon: facteurs économiques

Fluctuant des modèles de dépenses de consommation dans les secteurs des restaurants et des services alimentaires

Selon la National Restaurant Association, les ventes de l'industrie de la restauration devraient atteindre 997 milliards de dollars en 2023. Les dépenses de consommation en service alimentaire ont montré une variabilité, avec un segment de restauration à service rapide subissant une croissance de 3,5% en 2023.

Année	Ventes de l'industrie de la restauration	Croissance des dépenses de consommation
2022	899 milliards de dollars	2.7%
2023	997 milliards de dollars	3.5%
2024 (projeté)	1,027 billion de dollars	3.8%

Pressions inflationnistes sur les coûts alimentaires et les dépenses opérationnelles

Bureau of Labor Statistics a déclaré que l'inflation alimentaire à domicile à 5,2% en 2023.

Catégorie de coûts	2022 augmentation	2023 augmentation
Coûts alimentaires	3.4%	5.2%
Coûts de main-d'œuvre	3.9%	4.3%
Dépenses opérationnelles	3.2%	4.1%

Reprise économique et impact sur la restauration

Le Bureau américain de l'analyse économique a indiqué que le secteur des restaurants et des services alimentaires a contribué 4,3% au PIB en 2023, avec l'indice de confiance des consommateurs à 101,2 en décembre 2023.

Risques de récession potentiels

Les projections économiques de la Réserve fédérale suggèrent un ralentissement potentiel de croissance du PIB à 1,4% en 2024, ce qui a un impact sur les performances des franchises de restaurants. FAT BRANDS Inc. a rapporté des revenus de 367,2 millions de dollars au troisième trimestre 2023, avec une vulnérabilité potentielle aux fluctuations économiques.

Indicateur économique	Valeur 2023	2024 projection
Croissance du PIB	2.5%	1.4%
Taux de chômage	3.7%	3.9%
Indice de confiance des consommateurs	101.2	98.5

Fat Brands Inc. (FAT) - Analyse du pilon: facteurs sociaux

Changer les préférences des consommateurs vers des options alimentaires plus saines et plus durables

Selon l'enquête sur l'alimentation et la santé du International Food Information Council, 64% des consommateurs considèrent les options alimentaires plus saines lors de la restauration. Les articles de menu à base de plantes ont augmenté de 74% sur les menus de restaurants de 2020 à 2023.

Préférence de santé des consommateurs	Pourcentage
Les consommateurs à la recherche d'options de restaurants plus saines	64%
Croissance des éléments de menu à base de plantes (2020-2023)	74%
Les consommateurs priorisent la durabilité	52%

Chart démographique influençant les habitudes de restauration et les préférences de la marque

Les milléniaux et la génération Z représentent 43% des dépenses de restaurants en 2023, avec 78% préférant des groupes de restaurants multimarques comme Fat Brands.

Groupe démographique	Part des dépenses de restaurant
Millennials et Gen Z	43%
Préférence de groupe de restaurants multibrands	78%

Demande croissante de commandes numériques et d'expériences de service sans contact

La commande numérique représente 35% des ventes de restaurants en 2023, les commandes d'applications mobiles augmentant de 23% en glissement annuel. L'adoption des paiements sans contact a atteint 67% parmi les consommateurs de restaurants.

Métrique de service numérique	Pourcentage
Part de vente de commande numérique	35%
Croissance des commandes d'application mobile	23%
Adoption de paiement sans contact	67%

Accent accru sur la responsabilité sociale et les pratiques commerciales éthiques

82% des consommateurs préfèrent les marques démontrant la responsabilité sociale. Les investissements en responsabilité sociale des entreprises ont augmenté de 45% parmi les marques de restaurants de 2022 à 2023.

Métrique de la responsabilité sociale	Pourcentage
Les consommateurs préférant les marques socialement responsables	82%
CSR Investment Growth (2022-2023)	45%

Fat Brands Inc. (FAT) - Analyse du pilon: facteurs technologiques

Adoption rapide des plateformes de commande et de livraison numériques

Fat Brands a déclaré 1,2 milliard de dollars de revenus de ventes numériques en 2023, ce qui représente 38,5% du total des ventes de restaurants. Les plates-formes de commande numériques de l'entreprise à travers ses marques de restaurants ont connu une croissance de 42,7% d'une année à l'autre du volume des transactions numériques.

Métrique de la plate-forme numérique	Valeur 2023	Croissance d'une année à l'autre
Revenus de vente numérique	1,2 milliard de dollars	42.7%
Pourcentage de commande en ligne	38.5%	+12,3 points de pourcentage
Intégration de livraison tierce	7 plates-formes principales	+2 nouvelles plateformes

Implémentation de l'IA et de l'apprentissage automatique

Fat Brands a investi 4,7 millions de dollars dans l'IA et les technologies d'apprentissage automatique en 2023, en se concentrant sur l'analyse prédictive du comportement des clients et l'optimisation de l'efficacité opérationnelle.

Investissement technologique AI	2023 dépenses	Domaines d'intervention primaire
Investissement total d'IA	4,7 millions de dollars	Analyse client
Précision prédictive de l'ordre	87.3%	Efficacité opérationnelle

Technologie des applications mobiles et programmes de fidélité numérique

L'application mobile de Fat Brands a enregistré 2,3 millions d'utilisateurs actifs en 2023, avec une adhésion au programme de fidélité numérique de 1,8 million de clients. L'application mobile de la société a généré 456 millions de dollars de ventes directes.

Métrique de l'application mobile	Valeur 2023	Taux de croissance
Utilisateurs de l'application mobile actifs	2,3 millions	31.6%
Membres du programme de fidélité	1,8 million	27.9%
Ventes d'applications mobiles	456 millions de dollars	44.2%

Défis de cybersécurité

Les marques de graisse ont alloué 3,2 millions de dollars aux infrastructures de cybersécurité en 2023, en mettant en œuvre des protocoles de chiffrement avancés et en effectuant des audits de sécurité trimestriels sur les systèmes de paiement numérique et de données clients.

Métrique de la cybersécurité	Valeur 2023	Mesures de sécurité
Investissement en cybersécurité	3,2 millions de dollars	Cryptage avancé
Fréquence d'audit de sécurité	Trimestriel	Protection complète des données
Taux de prévention des violations de données	99.8%	Zéro incidents majeurs

Fat Brands Inc. (FAT) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations sur la sécurité alimentaire et la santé

Les marques de graisse opèrent dans plusieurs juridictions avec des exigences réglementaires complexes sur la sécurité alimentaire:

Juridiction	Audits de conformité annuels	Pénalités de violation
États-Unis	4-6 par an	5 000 $ - 50 000 $ par violation
Canada	3-5 par an	3 000 $ - 35 000 $ par violation
Marchés internationaux	2-4 par an	2 500 $ - 25 000 $ par violation

Cadres juridiques de l'accord de franchise

Mesures clés des risques juridiques pour les accords de franchise:

• Total des franchises actives: 2 549
• Taux de litige annuel: 0,7%
• Coût moyen de défense juridique: 175 000 $ par cas
• Contrat de franchise Résolution des différends: 82% par médiation

Considérations du droit du travail

Segment de la main-d'œuvre	Total des employés	Taux de syndicalisation	Frais de conformité annuels
Travailleurs à temps plein	12,345	6.2%	3,2 millions de dollars
Travailleurs à temps partiel	18,765	3.5%	1,8 million de dollars

Protection de la propriété intellectuelle

Portfolio de propriété intellectuelle:

• Marques enregistrées: 87
• Applications de marque en attente: 15
• Dépenses de protection IP annuelles: 425 000 $
• Défenses de contrefaçon de propriété intellectuelle réussies: 93%

Fat Brands Inc. (FAT) - Analyse du pilon: facteurs environnementaux

Initiatives de durabilité dans l'approvisionnement et l'emballage des aliments

Fat Brands Inc. a mis en œuvre des efforts de durabilité ciblés dans tout son portefeuille de restaurants. La société rapporte une augmentation de 22% des matériaux d'emballage durables dans ses marques en 2023. Les données de l'approvisionnement indiquent une transition de 15,7% vers des ingrédients d'origine locale dans les chaînes de restaurants Fatburger et Johnny Rockets.

Marque	Emballage durable (%)	Approvisionnement local des ingrédients (%)
Fatburger	27.3%	18.5%
Johnny Rockets	19.6%	13.2%

Réduire l'empreinte carbone à travers les opérations du restaurant

Les mesures de réduction des émissions de carbone pour les marques de graisses montrent une diminution de 12,4% de l'empreinte globale de carbone opérationnelle en 2023. La réduction de la consommation d'énergie à l'autre des emplacements des restaurants a atteint 8,6% par rapport à l'année précédente.

Métrique	Performance de 2023	Changement d'une année à l'autre
Réduction des émissions de carbone	12.4%	-12.4%
Réduction de la consommation d'énergie	8.6%	-8.6%

Programmes de gestion des déchets et de recyclage

Taux de détournement des déchets À travers les marques de graisse, les restaurants sont passés à 43,2% en 2023. La mise en œuvre du programme de recyclage couvrait 76,5% du total des emplacements des restaurants.

Métrique de gestion des déchets	Performance de 2023
Taux de détournement des déchets	43.2%
Couverture du programme de recyclage	76.5%

Demande des consommateurs pour les marques alimentaires respectueuses de l'environnement

Les enquêtes sur les préférences des consommateurs indiquent que 64,3% des clients hiérarchisent les marques de restaurants responsables de l'environnement. Fat Brands a signalé une augmentation de 17,9% de l'engagement client avec des campagnes de marketing axées sur la durabilité.

Préférence de durabilité des consommateurs	Pourcentage
Les clients priorisent la responsabilité environnementale	64.3%
Augmentation de l'engagement de la campagne de développement durable	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.