Fat Brands Inc. (FAT): Análise de Pestle [Jan-2025 Atualizada]

No mundo dinâmico da franquia de restaurantes, a Fat Brands Inc. (FAT) está em uma interseção crítica de desafios e oportunidades globais, navegando em um cenário complexo que exige agilidade estratégica e pensamento inovador. Desde tensões geopolíticas que afetam as cadeias de suprimentos até as preferências de consumidores e a evolução do consumidor e as rupturas tecnológicas, essa análise de pilões revela as forças externas multifacetadas que moldam o potencial de crescimento, resiliência e transformação da Companhia em um ecossistema de serviços de alimentação cada vez mais competitivo e com rápida mudança.

Fat Brands Inc. (FAT) - Análise de Pestle: Fatores Políticos

Impacto potencial das políticas comerciais internacionais nas operações de franquia de restaurantes

A partir de 2024, as marcas de gordura opera em vários países, enfrentando regulamentos comerciais internacionais complexos. Tarifas e restrições de importação/exportação afetam diretamente os custos de ingredientes alimentares e a dinâmica da cadeia de suprimentos.

País	Impacto da política comercial	Aumento estimado do custo
Estados Unidos	Políticas protecionistas moderadas	3,7% custos adicionais da cadeia de suprimentos
Canadá	Regulamentos de importação agrícola rigorosos	4,2% de despesas de aquisição de ingredientes
Reino Unido	Complicações comerciais pós-Brexit	5,1% de aumento de sobrecarga operacional

Desafios regulatórios em diferentes estados e países

As marcas de gordura enfrentam diversos ambientes regulatórios em seus territórios operacionais.

• Califórnia: regulamentos trabalhistas rigorosos aumentando o salário mínimo para US $ 15,50/hora
• Nova York: requisitos complexos de conformidade com segurança alimentar
• Texas: regulamentos de franquia relativamente favoritos
• Mercados Internacionais: Variando os padrões de segurança e emprego alimentar

Apoio ao governo ou restrições às indústrias de restaurantes e serviços de alimentação

As políticas governamentais influenciam significativamente as operações de franquia de restaurantes em 2024.

Mecanismo de apoio ao governo	Impacto financeiro
Créditos fiscais para pequenas empresas	Até US $ 25.000 por localização da franquia
Subsídios de treinamento em emprego	US $ 5.000 a US $ 7.500 por novo funcionário
Fundos de recuperação Covid-19	Aproximadamente US $ 150.000 por cadeia de restaurantes qualificados

Tensões geopolíticas que afetam a cadeia de suprimentos globais e estratégias de expansão

A dinâmica geopolítica afeta significativamente as estratégias de expansão internacional das marcas de gordura.

• Conflito da Rússia-Ucrânia: aumento de 12,3% nos custos de transporte de ingredientes
• Tensões comerciais EUA-China: 8,6% da complexidade da cadeia de suprimentos
• Instabilidade do Oriente Médio: Potencial Interrupção no fornecimento de ingredientes

Impacto total de risco político estimado nas operações globais das marcas de gordura: 6,4% da receita anual.

Fat Brands Inc. (FAT) - Análise de Pestle: Fatores Econômicos

Padrões de gastos com consumidores flutuantes em setores de restaurantes e serviços de alimentação

De acordo com a National Restaurant Association, as vendas da indústria de restaurantes foram projetadas para atingir US $ 997 bilhões em 2023. Os gastos com consumidores em serviço de alimentação mostraram variabilidade, com o segmento de restaurante de serviço rápido experimentando um crescimento de 3,5% em 2023.

Ano	Vendas da indústria de restaurantes	Crescimento dos gastos com consumidores
2022	US $ 899 bilhões	2.7%
2023	US $ 997 bilhões	3.5%
2024 (projetado)	US $ 1,027 trilhão	3.8%

Pressões inflacionárias sobre custos com alimentos e despesas operacionais

As estatísticas do Bureau of Labor relataram que a inflação alimentar de casa em casa em 5,2% em 2023. Os custos operacionais do restaurante aumentaram significativamente, com os custos de mão-de-obra subindo 4,3% e os preços das commodities alimentares aumentando 3,7%.

Categoria de custo	2022 Aumento	2023 Aumento
Custos alimentares	3.4%	5.2%
Custos de mão -de -obra	3.9%	4.3%
Despesas operacionais	3.2%	4.1%

Recuperação econômica e impacto no jantar fora

O Bureau of Economic Analysis indicou que o setor de restaurantes e serviços de alimentação contribuiu com 4,3% para o PIB em 2023, com o índice de confiança do consumidor em 101,2 em dezembro de 2023.

Riscos potenciais de recessão

As projeções econômicas do Federal Reserve sugerem uma desaceleração potencial do crescimento do PIB para 1,4% em 2024, potencialmente impactando o desempenho da franquia de restaurantes. A Fat Brands Inc. registrou receita de US $ 367,2 milhões no terceiro trimestre de 2023, com potencial vulnerabilidade a flutuações econômicas.

Indicador econômico	2023 valor	2024 Projeção
Crescimento do PIB	2.5%	1.4%
Taxa de desemprego	3.7%	3.9%
Índice de confiança do consumidor	101.2	98.5

Fat Brands Inc. (FAT) - Análise de Pestle: Fatores sociais

Mudança de preferências do consumidor em relação às opções de alimentos mais saudáveis ​​e sustentáveis

De acordo com a Pesquisa de Alimentos e Saúde do Conselho Internacional de Alimentos, 64% dos consumidores consideram as opções mais saudáveis ​​de alimentos ao jantar fora. Os itens de menu baseados em plantas cresceram 74% nos menus de restaurantes de 2020 a 2023.

Preferência de saúde do consumidor	Percentagem
Consumidores que procuram opções de restaurante mais saudáveis	64%
Crescimento de itens de menu baseados em plantas (2020-2023)	74%
Consumidores priorizando a sustentabilidade	52%

Mudanças demográficas que influenciam hábitos gastronômicos e preferências de marca

A geração do milênio e a geração Z representam 43% dos gastos com restaurantes em 2023, com 78% preferindo grupos de restaurantes de várias marcas como marcas de gordura.

Grupo demográfico	Compartilhamento de gastos com restaurantes
Millennials e Gen Z	43%
Preferência de grupo de restaurantes de várias marcas	78%

Crescente demanda por pedidos digitais e experiências de serviço sem contato

A ordem digital representa 35% das vendas de restaurantes em 2023, com pedidos de aplicativos móveis aumentando 23% ano a ano. A adoção de pagamento sem contato atingiu 67% entre os consumidores de restaurantes.

Métrica de Serviço Digital	Percentagem
Comissão de vendas de pedidos digitais	35%
Crescimento de pedidos de aplicativo móvel	23%
Adoção de pagamento sem contato	67%

Maior foco na responsabilidade social e nas práticas de negócios éticas

82% dos consumidores preferem marcas que demonstram responsabilidade social. Os investimentos em responsabilidade social corporativa aumentaram 45% entre as marcas de restaurantes de 2022 para 2023.

Métrica de responsabilidade social	Percentagem
Consumidores preferindo marcas socialmente responsáveis	82%
CRESCIMENTO DE INVESTIMENTO DA REC (2022-2023)	45%

Fat Brands Inc. (FAT) - Análise de Pestle: Fatores tecnológicos

Adoção rápida de plataformas de pedidos e entrega digitais

A FAT Brands reportou US $ 1,2 bilhão em receita de vendas digitais em 2023, representando 38,5% do total de vendas de restaurantes. As plataformas de pedidos digitais da empresa em suas marcas de restaurantes experimentaram um crescimento de 42,7% ano a ano no volume de transações digitais.

Métrica da plataforma digital	2023 valor	Crescimento ano a ano
Receita de vendas digital	US $ 1,2 bilhão	42.7%
Porcentagem de pedidos on -line	38.5%	+12.3 pontos percentuais
Integração de entrega de terceiros	7 principais plataformas	+2 novas plataformas

Implementação de IA e aprendizado de máquina

As marcas de gordura investiram US $ 4,7 milhões em tecnologias de IA e aprendizado de máquina em 2023, concentrando -se na análise preditiva do comportamento do cliente e na otimização de eficiência operacional.

Investimento em tecnologia da IA	2023 Despesas	Áreas de foco primário
Investimento total de IA	US $ 4,7 milhões	Análise de clientes
Precisão da previsão de pedidos preditivos	87.3%	Eficiência operacional

Tecnologia de aplicativos móveis e programas de fidelidade digital

O aplicativo móvel da Fat Brands registrou 2,3 ​​milhões de usuários ativos em 2023, com uma associação ao programa de fidelidade digital de 1,8 milhão de clientes. O aplicativo móvel da empresa gerou US $ 456 milhões em vendas diretas.

Métrica de aplicativo móvel	2023 valor	Taxa de crescimento
Usuários ativos de aplicativos móveis	2,3 milhões	31.6%
Membros do programa de fidelidade	1,8 milhão	27.9%
Vendas de aplicativos móveis	US $ 456 milhões	44.2%

Desafios de segurança cibernética

As marcas de gordura alocaram US $ 3,2 milhões à infraestrutura de segurança cibernética em 2023, implementando protocolos avançados de criptografia e conduzindo auditorias trimestrais de segurança nos sistemas de pagamento digital e dados de clientes.

Métrica de segurança cibernética	2023 valor	Medidas de segurança
Investimento de segurança cibernética	US $ 3,2 milhões	Criptografia avançada
Frequência de auditoria de segurança	Trimestral	Proteção abrangente de dados
Taxa de prevenção de violação de dados	99.8%	Zero incidentes principais

Fat Brands Inc. (FAT) - Análise de Pestle: Fatores Legais

Conformidade com os regulamentos de segurança e saúde alimentares

As marcas de gordura opera em várias jurisdições com requisitos regulatórios complexos de segurança alimentar:

Jurisdição	Auditorias anuais de conformidade	Penalidades de violação
Estados Unidos	4-6 por ano	US $ 5.000 - US $ 50.000 por violação
Canadá	3-5 por ano	$ 3.000 - US $ 35.000 por violação
Mercados internacionais	2-4 por ano	US $ 2.500 - US $ 25.000 por violação

Contrato de franquia Estruturas legais

Principais métricas de risco legal para acordos de franquia:

• Total de franquias ativas: 2.549
• Taxa de litígio anual: 0,7%
• Custo médio de defesa legal: US $ 175.000 por caso
• Contrato de franquia Resolução de disputas: 82% através da mediação

Considerações da lei trabalhista

Segmento da força de trabalho	Total de funcionários	Taxa de sindicalização	Custos anuais de conformidade
Trabalhadores em tempo integral	12,345	6.2%	US $ 3,2 milhões
Trabalhadores de meio período	18,765	3.5%	US $ 1,8 milhão

Proteção à propriedade intelectual

Portfólio de propriedade intelectual:

• Marcas registradas: 87
• Aplicações pendentes de marca registrada: 15
• Despesas anuais de proteção de IP: US $ 425.000
• Defesas de violação de IP bem -sucedidas: 93%

Fat Brands Inc. (FAT) - Análise de Pestle: Fatores Ambientais

Iniciativas de sustentabilidade em fornecimento de alimentos e embalagem

A Fat Brands Inc. implementou esforços direcionados de sustentabilidade em seu portfólio de restaurantes. A empresa relata um aumento de 22% nos materiais de embalagem sustentável em suas marcas em 2023. Os dados de fornecimento indicam uma mudança de 15,7% em direção a ingredientes de origem local nas cadeias de restaurantes Fatburger e Johnny Rockets.

Marca	Embalagem sustentável (%)	Fornecimento de ingredientes locais (%)
Fatburger	27.3%	18.5%
Johnny Rockets	19.6%	13.2%

Reduzindo a pegada de carbono nas operações de restaurantes

As métricas de redução de emissões de carbono para marcas de gordura mostram uma diminuição de 12,4% na pegada geral de carbono operacional em 2023. Redução do consumo de energia nos locais de restaurantes atingiram 8,6% em comparação com o ano anterior.

Métrica	2023 desempenho	Mudança de ano a ano
Redução de emissões de carbono	12.4%	-12.4%
Redução do consumo de energia	8.6%	-8.6%

Programas de gerenciamento e reciclagem de resíduos

Taxas de desvio de resíduos Em toda a Fat Brands, os restaurantes aumentaram para 43,2% em 2023. A implementação do programa de reciclagem cobriu 76,5% do total de locais de restaurantes.

Métrica de gerenciamento de resíduos	2023 desempenho
Taxa de desvio de resíduos	43.2%
Cobertura do programa de reciclagem	76.5%

Demanda do consumidor por marcas de alimentos ambientalmente responsáveis

Pesquisas de preferência do consumidor indicam 64,3% dos clientes priorizam as marcas de restaurantes ambientalmente responsáveis. As marcas de gordura reportaram um aumento de 17,9% no envolvimento do cliente com campanhas de marketing focadas em sustentabilidade.

Preferência de sustentabilidade do consumidor	Percentagem
Clientes priorizando a responsabilidade ambiental	64.3%
Aumento do envolvimento da campanha de sustentabilidade	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.