FAT Brands (FAT) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 26, 2023	Apr. 26, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 26, 2023
Document Transition Report	false
Entity File Number	001-38250
Entity Registrant Name	fat Brands Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-1302696
Entity Address, Address Line One	9720 Wilshire Blvd.
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Beverly Hills
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90212
City Area Code	(310)
Local Phone Number	319-1850
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001705012
Class A Common Stock
Document Information [Line Items]
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	FAT
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		15,461,753
Class B Common Stock
Document Information [Line Items]
Title of 12(b) Security	Class B Common Stock, par value $0.0001 per share
Trading Symbol	FATBB
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		1,270,805
Series B Cumulative Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Series B Cumulative Preferred Stock, par value $0.0001 per share
Trading Symbol	FATBP
Security Exchange Name	NASDAQ
Warrants to Purchase Common Stock
Document Information [Line Items]
Title of 12(b) Security	Warrants to purchase Class A Common Stock
Trading Symbol	FATBW
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Current assets
Cash	$ 46,188	$ 28,668
Restricted cash	26,368	25,375
Accounts receivable, net of allowances of $13,968 and $24,207 as of March 26, 2023 and December 25, 2022, respectively	26,925	23,880
Inventory	6,770	6,925
Assets classified as held-for-sale	4,033	4,767
Other current assets	6,639	6,086
Total current assets	116,923	95,701
Non-current restricted cash	14,735	14,720
Operating lease right-of-use assets	100,782	101,114
Goodwill	293,282	293,282
Other intangible assets, net	621,547	625,294
Property and equipment, net	77,850	79,189
Other assets	4,410	4,003
Total assets	1,229,529	1,213,303
Current liabilities
Accounts payable	20,069	18,328
Accrued expenses and other liabilities	47,723	52,800
Deferred income, current portion	2,345	2,019
Accrued advertising	13,328	14,819
Accrued interest payable	17,995	13,241
Dividend payable on preferred shares	1,468	1,467
Liabilities related to assets classified as held-for-sale	3,420	4,084
Operating lease liability, current portion	14,934	14,815
Redeemable preferred stock, current portion	91,836	91,836
Long-term debt, current portion	28,631	49,611
Acquisition purchase price payable	4,000	4,000
Total current liabilities	245,749	267,020
Deferred income, net of current portion	20,820	21,698
Deferred income tax liabilities, net	28,299	27,181
Operating lease liability, net of current portion	95,402	95,620
Long-term debt, net of current portion	1,020,428	958,630
Other liabilities	12,676	2,332
Total liabilities	1,423,374	1,372,481
Commitments and contingencies (Note 13)
Stockholders’ deficit
Preferred stock, $0.0001 par value; 15,000,000 shares authorized; 3,272,980 shares issued and outstanding at March 26, 2023 and 3,252,154 shares issued and outstanding at December 25, 2022; liquidation preference $25 per share	44,131	45,504
Class A common stock and Class B common stock and additional paid-in capital as of March 26, 2023: $0.0001 par value per share; 51,600,000 shares authorized (Class A 50,000,000, Class B 1,600,000); 16,612,627 shares issued and outstanding (Class A 15,341,822, Class B 1,270,805). Common stock and additional paid-in capital as of December 25, 2022: $0.0001 par value; 51,600,000 shares authorized; 16,571,675 shares issued and outstanding (Class A 15,300,870, Class B 1,270,805)	(27,183)	(26,015)
Accumulated deficit	(210,793)	(178,667)
Total stockholders’ deficit	(193,845)	(159,178)
Total liabilities and stockholders’ deficit	$ 1,229,529	$ 1,213,303

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Accounts receivable, allowance for doubtful accounts	$ 13,968	$ 24,207
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	15,000,000	15,000,000
Preferred stock, issued (in shares)	3,272,980	3,252,154
Preferred stock, outstanding (in shares)	3,272,980	3,252,154
Preferred stock, liquidation preference (in dollars per share)	$ 25	$ 25
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	51,600,000	51,600,000
Common stock, issued (in shares)	16,612,627	16,571,675
Common stock, outstanding (in shares)	16,612,627	16,571,675
Class A Common Stock
Common stock, authorized (in shares)	50,000,000
Common stock, issued (in shares)	15,341,822	15,300,870
Common stock, outstanding (in shares)	15,341,822	15,300,870
Class B Common Stock
Common stock, authorized (in shares)	1,600,000
Common stock, issued (in shares)	1,270,805	1,270,805
Common stock, outstanding (in shares)	1,270,805	1,270,805

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Revenue
Total revenue	$ 105,691	$ 97,403
Costs and expenses
General and administrative expense	28,415	24,753
Cost of restaurant and factory revenues	59,087	54,799
Depreciation and amortization	7,116	6,561
Refranchising loss	159	548
Advertising fees	10,527	10,257
Total costs and expenses	105,304	96,918
Income from operations	387	485
Other (expense) income, net
Interest expense, net	(25,090)	(19,027)
Interest expense related to preferred shares	(5,043)	(1,999)
Other income, net	156	1,310
Total other expense, net	(29,977)	(19,716)
Loss before income tax provision	(29,590)	(19,231)
Income tax provision	2,536	4,524
Net loss	$ (32,126)	$ (23,755)
Basic loss per common share (in dollars per share)	$ (1.95)	$ (1.45)
Diluted loss per common share (in dollars per share)	$ (1.95)	$ (1.45)
Basic weighted average shares outstanding (in shares)	16,487,119	16,388,471
Diluted weighted average shares outstanding (in shares)	16,487,119	16,388,471
Cash dividends declared per common share (in dollars per share)	$ 0.14	$ 0.13
Royalties
Revenue
Total revenue	$ 22,485	$ 20,898
Restaurant sales
Revenue
Total revenue	62,601	58,077
Advertising fees
Revenue
Total revenue	9,351	9,361
Factory revenues
Revenue
Total revenue	9,165	8,179
Franchise fees
Revenue
Total revenue	802	714
Other revenue
Revenue
Total revenue	$ 1,287	$ 174

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT - USD ($) $ in Thousands	Total	Total Common Stock	Class A Shares	Class B Shares	Class A Par Value	Class B Par Value	Common Stock Additional Paid-In Capital	Total Preferred Stock	Preferred Stock Shares	Preferred Stock Par Value	Preferred Stock Additional Paid-In Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 26, 2021			15,109,747	1,270,805
Beginning balance (in shares) at Dec. 26, 2021									3,221,471
Beginning balance, value at Dec. 26, 2021	$ (21,655)	$ (24,837)			$ 2	$ 0	$ (24,839)	$ 55,661		$ 0	$ 55,661	$ (52,479)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(23,755)											(23,755)
Issuance of common and preferred stock (in shares)			21,850
Issuance of common and preferred stock	79	61					61	18			18
Share-based compensation	2,112	2,112					2,112
Dividends paid on common stock	(2,128)	(2,128)					(2,128)
Dividends paid on Series B preferred stock	(1,652)							(1,652)			(1,652)
Exercise of Series B preferred stock put option	(4,107)							(4,107)			(4,107)
Ending balance (in shares) at Mar. 27, 2022			15,131,597	1,270,805
Ending balance (in shares) at Mar. 27, 2022									3,221,471
Ending balance, value at Mar. 27, 2022	$ (51,106)	(24,792)			2	0	(24,794)	49,920		0	49,920	(76,234)
Beginning balance (in shares) at Dec. 25, 2022	16,571,675		15,300,870	1,270,805
Beginning balance (in shares) at Dec. 25, 2022	3,252,154								3,252,154
Beginning balance, value at Dec. 25, 2022	$ (159,178)	(26,015)			2	0	(26,017)	45,504		0	45,504	(178,667)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(32,126)											(32,126)
Issuance of common and preferred stock (in shares)			40,952						20,826
Issuance of common and preferred stock	439	57					57	382			382
Share-based compensation	1,095	1,095					1,095
Dividends paid on common stock	(2,320)	(2,320)					(2,320)
Dividends paid on Series B preferred stock	$ (1,755)							(1,755)			(1,755)
Ending balance (in shares) at Mar. 26, 2023	16,612,627		15,341,822	1,270,805
Ending balance (in shares) at Mar. 26, 2023	3,272,980								3,272,980
Ending balance, value at Mar. 26, 2023	$ (193,845)	$ (27,183)			$ 2	$ 0	$ (27,185)	$ 44,131		$ 0	$ 44,131	$ (210,793)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Cash flows from operating activities:
Net loss	$ (32,126)	$ (23,755)
Adjustments to reconcile net loss to net cash used in operations:
Deferred income taxes	1,119	3,068
Depreciation and amortization	7,116	6,561
Share-based compensation	1,095	2,112
Accretion of loan fees and interest	4,978	2,634
Adjustments of purchase price liability	0	24
Provision for bad debts	(206)	185
Change in:
Accounts receivable	7,193	1,404
Inventory	155	(234)
Other current and noncurrent assets	(1,031)	439
Operating lease assets and liabilities	302	451
Deferred income	(551)	1,506
Accounts payable	1,741	(4,014)
Accrued expenses and other liabilities	(5,078)	(4,181)
Accrued advertising	(1,491)	1,462
Accrued interest payable	4,754	1,936
Other current and noncurrent liabilities	315	(731)
Total adjustments	20,411	12,622
Net cash used in operating activities	(11,715)	(11,133)
Cash flows from investing activities:
Purchases of property and equipment	(2,031)	(3,770)
Payments received on notes receivable	70	30
Net cash used in investing activities	(1,961)	(3,740)
Cash flows from financing activities:
Proceeds from borrowings, net of issuance costs	35,891	492
Repayments of borrowings	(51)	(236)
Proceeds from issuance of common and preferred shares	439	79
Dividends paid on redeemable preferred stock	0	(1,062)
Dividends paid on common shares	(2,320)	(2,128)
Dividends paid on preferred shares	(1,755)	(1,652)
Net cash provided by (used in) financing activities	32,204	(4,507)
Net increase (decrease) in cash and restricted cash	18,528	(19,380)
Cash and restricted cash at beginning of the period	68,763	99,921
Cash and restricted cash at end of the period	87,291	80,541
Supplemental disclosures of cash flow information:
Cash paid for interest	17,662	14,978
Cash paid for income taxes	$ 321	$ 210

ORGANIZATION AND RELATIONSHIPS

ORGANIZATION AND RELATIONSHIPS	3 Months Ended
	Mar. 26, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND RELATIONSHIPS	ORGANIZATION AND RELATIONSHIPS Organization and Nature of Business FAT Brands Inc. (the "Company" or "FAT") is a leading multi-brand restaurant company that develops, markets, acquires and manages quick-service, fast casual, casual dining and polished casual dining restaurant concepts around the world. As of March 26, 2023, the Company owned seventeen restaurant brands: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Fazoli's, Twin Peaks, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Native Grill & Wings, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses . As of March 26, 2023, the Company had approximately 2,300 locations open and under construction, of which approximately 95% were franchised. Each franchising subsidiary licenses the right to use its brand name and provides franchisees with operating procedures and methods of merchandising. Upon signing a franchise agreement, the franchisor is committed to provide training, some supervision and assistance and access to operations manuals. As needed, the franchisor will also provide advice and written materials concerning techniques of managing and operating the restaurants. The Company's operations have historically been comprised primarily of franchising a growing portfolio of restaurant brands. This growth strategy is centered on expanding the footprint of existing brands and acquiring new brands through a centralized management organization which provides substantially all executive leadership, marketing, training and accounting services. As part of these ongoing franchising efforts, the Company will, from time to time, make opportunistic acquisitions of operating restaurants and may convert them to franchise locations. During the refranchising period the Company may operate the restaurants and classifies the operational activities as refranchising gains or losses and the assets and associated liabilities as held-for sale. Through recent acquisitions, the Company also operates "company-owned" restaurant locations of certain brands. COVID-19 The outbreak of the COVID-19 pandemic in March 2020 had a number of adverse effects on our business and that of our franchisees, including temporary and permanent closures of restaurant locations, reduced or modified store operating hours, difficulties in staffing restaurants and supply chain disruptions. While the disruptions to our business from the COVID-19 pandemic have mostly subsided, the resurgence of COVID-19 or its variants, as well as an outbreak of other widespread health epidemics or pandemics, could cause a closure of restaurants and disrupt our operations and have a material adverse effect on our business, financial condition and results of operations. Liquidity The Company recognized income from operations of $0.4 million and $0.5 million during the thirteen weeks ended March 26, 2023 and March 27, 2022, respectively. The Company has a history of net losses and an accumulated deficit of $210.8 million as of March 26, 2023. Additionally, the Company had negative working capital of $128.8 million. Of this amount, $91.8 million represents the current portion of redeemable preferred stock as discussed in Note 9. Since the Company did not deliver the applicable cash proceeds at the related due dates, the amount accrues interest until the payments are completed. The Company had $46.2 million of unrestricted cash at March 26, 2023 and plans on the combination of cash flows from operations, cash on hand and $48.5 million of issued but not sold aggregate principal amount of fixed rate secured notes to be sufficient to cover any working capital requirements for the next twelve months from the date of this report. If the Company does not achieve its operating plan, additional forms of financing may be required through the issuance of debt or equity. Although management believes it will have access to financing, no assurances can be given that such financing will be available on acceptable terms, in a timely manner or at all.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 26, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation – The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Our revenues are derived primarily from two sales channels, franchised restaurants and company-owned locations, which we operate as one reportable segment. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of the Company, all adjustments considered necessary for the fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature. Nature of operations – The Company operates on a 52-week calendar and its fiscal year ends on the last Sunday of the calendar year. Consistent with industry practice, the Company measures its stores’ performance based upon 7-day work weeks. Using the 52-week cycle ensures consistent weekly reporting for operations and ensures that each week has the same days since certain days are more profitable than others. The use of this fiscal year means a 53rd week is added to the fiscal year every 5 or 6 years, as is the case for fiscal year 2023. In a 52-week year, all four quarters are comprised of 13 weeks. In a 53-week year, one extra week is added to the fourth quarter. Use of estimates in the preparation of the condensed consolidated financial statements – The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Significant estimates include the determination of fair values of goodwill and other intangible assets, allowances for uncollectible notes receivable and accounts receivable, and the valuation allowance related to deferred tax assets. Estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Financial statement reclassification – Certain account balances from prior periods have been reclassified in these condensed consolidated financial statements to conform to current period classifications. Recently Adopted Accounting Standards In March 2022, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The purpose of this amendment is to enhance disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. It requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. The amendments should be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASC No. 2022-02 for the fiscal year beginning December 26, 2022, which did not have an effect on the Company's condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326)-Measurement of Credit Losses on Financial Instruments . This guidance replaced the previous incurred loss impairment methodology. Under the new guidance, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument based on historical experience, current conditions and reasonable and supportable forecasts. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates (“ASU 2019-10”) . The purpose of this amendment was to create a two-tier rollout of major updates, staggering the effective dates between larger public companies and all other entities. This granted certain classes of companies, including Smaller Reporting Companies (“SRCs”), additional time to implement major FASB standards, including ASU 2016-13. Larger public companies had an effective date for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All other entities were permitted to defer adoption of ASU 2016-13, and its related amendments, until fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company meets the definition of an SRC and adopted the deferral period for ASU 2016-13. The guidance requires a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, if applicable. The Company adopted ASU No. 2016-13 for the fiscal year beginning December 26, 2022. The adoption did not require an adjustment to retained earnings and did not have an effect on the Company's condensed consolidated financial statements.

REFRANCHISING

REFRANCHISING	3 Months Ended
	Mar. 26, 2023
Refranchising
REFRANCHISING	REFRANCHISINGAs part of its ongoing franchising efforts, the Company may, from time to time, sell operating restaurants built or acquired by the Company in order to convert them to franchise locations or acquire existing franchised locations to resell them to another franchisee across all of its brands. The following assets used in the operation of certain restaurants meet all of the criteria requiring that they be classified as held-for-sale, and have been classified accordingly in the accompanying condensed consolidated balance sheets as of March 26, 2023 and December 25, 2022 (in millions): March 26, 2023 December 25, 2022 Property and equipment $ 0.6 $ 0.7 Operating lease right-of-use assets 3.4 4.1 Total $ 4.0 $ 4.8 Operating lease liabilities related to the assets classified as held-for-sale in the amount of $3.4 million and $4.1 million have been classified as current liabilities in the accompanying condensed consolidated balance sheets as of March 26, 2023 and December 25, 2022, respectively. The following table highlights the operating results of the Company's refranchising program (in millions): Thirteen Weeks Ended March 26, 2023 March 27, 2022 Restaurant costs and expenses, net of revenue $ 0.3 $ 0.5 Gain on store sales or closures (0.1) — Refranchising loss $ 0.2 $ 0.5

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	3 Months Ended
	Mar. 26, 2023
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following (in millions): March 26, 2023 December 25, 2022 Real estate $ 69.0 $ 67.7 Equipment 27.2 26.5 $ 96.2 $ 94.2 Accumulated depreciation (18.3) (15.0) Property and equipment, net $ 77.9 $ 79.2 Depreciation expense during the thirteen weeks ended March 26, 2023 and March 27, 2022 was $3.3 million and $2.9 million, respectively. Upon retirement or other disposal of property and equipment, the cost and related amounts of accumulated depreciation are eliminated from the asset and accumulated depreciation accounts, respectively. The difference, if any, between the net asset value and the proceeds, is recorded in earnings.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS, NET	3 Months Ended
	Mar. 26, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS, NET	GOODWILL AND OTHER INTANGIBLE ASSETS, NET Changes in Carrying Value of Goodwill and Other Intangible Assets (in millions) Amortizing Intangible Assets Non-Amortizing Intangible Assets Goodwill Trademarks December 25, 2022 $ 162.1 $ 293.3 $ 463.2 Amortization (3.8) — — March 26, 2023 $ 158.3 $ 293.3 $ 463.2 Gross Carrying Value and Accumulated Amortization of Other Intangible Assets (in millions) March 26, 2023 December 25, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets Franchise agreements $ 109.2 $ (17.2) $ 92.0 $ 109.2 $ (14.8) $ 94.4 Customer relationships 73.9 (9.5) 64.4 73.9 (8.1) 65.8 Other 2.1 (0.2) 1.9 2.1 (0.2) 1.9 $ 185.2 $ (26.9) $ 158.3 $ 185.2 $ (23.1) $ 162.1 Non-amortizing intangible assets Trademarks 463.2 463.2 Total amortizing and non-amortizing intangible assets, net $ 621.5 $ 625.3 Amortization expense for the three months ended March 26, 2023 and March 27, 2022 was $3.8 million and $3.7 million, respectively. The expected future amortization of definite-life intangible assets by fiscal year (in millions): Fiscal Year: Remainder of 2023 $ 11.2 2024 14.7 2025 14.5 2026 14.5 2027 14.5

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 26, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The following table presents the Company’s provision for income taxes (in millions): Thirteen Weeks Ended March 26, 2023 March 27, 2022 Provision for income taxes $ 2.5 $ 4.5 Effective tax rate (8.6) % (23.5) %

LEASES

LEASES	3 Months Ended
	Mar. 26, 2023
Leases [Abstract]
LEASES	LEASES The Company recognized lease expense of $4.8 million and $4.5 million for the thirteen weeks ended March 26, 2023 and March 27, 2022, respectively. Operating lease right-of-use assets and operating lease liabilities relating to the operating leases are as follows (in millions): March 26, December 25, Operating lease right-of-use assets $ 100.8 $ 101.1 Right-of-use assets classified as held-for-sale 3.5 4.1 Total right-of-use assets $ 104.3 $ 105.2 Operating lease liabilities $ 110.3 $ 110.4 Lease liabilities related to assets held-for-sale 3.4 4.1 Total operating lease liabilities $ 113.7 $ 114.5 The contractual future maturities of the Company’s operating lease liabilities as of March 26, 2023, including anticipated lease extensions, are as follows (in millions): Fiscal year: Remainder of 2023 $ 14.6 2024 16.0 2025 15.4 2026 14.1 2027 13.8 Thereafter 168.1 Total lease payments $ 242.0 Less imputed interest (128.3) Total $ 113.7 The current portion of the operating lease liability as of March 26, 2023 was $14.9 million. Supplemental cash flow information for the thirteen weeks ended March 26, 2023 related to leases was as follows (in millions): Thirteen Weeks Ended March 26, 2023 March 27, 2022 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 4.4 $ 4.3

DEBT

DEBT	3 Months Ended
	Mar. 26, 2023
Debt Disclosure [Abstract]
DEBT	DEBT Long-term debt consisted of the following (in millions): March 26, 2023 December 25, 2022 Final Maturity Anticipated Call Date Rate Face Value Book Value Book Value Senior Debt FB Royalty Securitization 4/25/2051 7/25/2023 4.75 % $ 139.8 $ 135.6 $ 135.3 GFG Royalty Securitization 7/25/2051 7/25/2023 6.00 % 274.0 264.4 228.9 Twin Peaks Securitization 7/25/2051 7/25/2023 7.00 % 150.0 148.1 147.5 Fazoli's/Native Securitization 7/25/2051 7/25/2023 6.00 % 128.8 125.4 124.8 Senior Subordinated Debt FB Royalty Securitization 4/25/2051 7/25/2023 8.00 % 46.6 45.3 45.2 GFG Royalty Securitization 7/25/2051 7/25/2023 7.00 % 84.0 82.1 82.0 Twin Peaks Securitization 7/25/2051 7/25/2023 9.00 % 50.0 48.0 47.3 Fazoli's/Native Securitization 7/25/2051 7/25/2023 7.00 % 25.0 23.7 23.5 Subordinated Debt FB Royalty Securitization 4/25/2051 7/25/2023 9.00 % 34.6 32.3 32.1 GFG Royalty Securitization 7/25/2051 7/25/2023 9.50 % 57.0 53.8 53.5 Twin Peaks Securitization 7/25/2051 7/25/2023 10.00 % 50.0 46.7 45.5 Fazoli's/Native Securitization 7/25/2051 7/25/2023 9.00 % 40.0 37.3 37.0 Total Securitized Debt 1,079.8 1,042.7 1,002.6 Elevation Note 7/19/2026 N/A 6.00 % 4.0 3.5 3.9 Equipment Notes 5/5/2027 to 3/7/2029 N/A 7.99% to 8.49% 1.4 1.3 1.3 Twin Peaks Construction Loan 8/5/2023 N/A 8.00 % 0.7 0.7 0.4 Twin Peaks Construction Loan II 1/9/2024 N/A 10.83 % 0.8 0.8 — Total Debt $ 1,086.7 1,049.0 1,008.2 Current portion of long-term debt (28.6) (49.6) Long-term Debt $ 1,020.4 $ 958.6 Terms of Outstanding Debt FB Royalty Securitization On April 26, 2021, FAT Brands Royalty I, LLC ("FB Royalty"), a special purpose, wholly-owned subsidiary of FAT Brands Inc., completed the issuance and sale of three tranches of fixed rate secured notes with a total aggregate principal amount of $144.5 million. On July 6, 2022, FB Royalty issued an additional $76.5 million aggregate principal amount of three tranches of fixed rate secured notes. Of the $76.5 million aggregate principal amount, $30.0 million was sold privately during the third quarter of 2022, resulting in net proceeds of $27.1 million (net of debt offering costs of $0.6 million and original issue discount of $2.3 million). The remaining $46.5 million in aggregate principal was sold privately on October 21, 2022, when the Company entered into an Exchange Agreement with the Twin Peaks sellers and redeemed 1,821,831 shares of the Company's 8.25% Series B Cumulative Preferred Stock at a price of $23.69 per share, plus accrued and unpaid dividends to the date of redemption, in exchange for $46.5 million aggregate principal amount of secured debt ($43.2 million net of debt offering costs and original issue discount). Prior to the redemption, the Twin Peaks sellers held 2,847,393 shares of Series B Cumulative Preferred Stock. Pursuant to the Exchange Agreement, (i) at any time prior to July 25, 2023, the Company may call from the Twin Peaks sellers all or a portion of the Class M-2 Notes at the outstanding principal balance multiplied by 0.86, plus any accrued plus unpaid interest thereon; (ii) at any time on or after the date of the Exchange Agreement, the Company may call from the Twin Peaks sellers, and at any time on or after July 25, 2023, the Twin Peaks sellers may put to the Company, all or a portion of the Class A-2 Notes and/or Class B-2 Notes at the outstanding principal balance multiplied by 0.94, plus any accrued plus unpaid interest thereon; and (iii) at any time on or after July 25, 2023, the Company may call from the Twin Peaks sellers, and the Twin Peaks sellers may put to the Company, all or a portion of the Class M-2 Notes at the outstanding principal balance multiplied by 0.91, plus any accrued plus unpaid interest thereon. If the Company does not remit the applicable call price or put price upon a duly exercised call or put, as applicable, the amount owed by the Company will accrue interest at 10% per annum, which interest is due and payable in cash monthly by the Company. As of March 26, 2023, the outstanding principal balance owned by the Twin Peaks sellers and subject to the put/call option was $18.4 million. The FB Royalty securitization notes are generally secured by a security interest in substantially all the assets of FB Royalty and its subsidiaries. GFG Royalty Securitization In connection with the acquisition of GFG, on July 22, 2021, FAT Brands GFG Royalty I, LLC ("GFG Royalty"), a special purpose, wholly-owned subsidiary of FAT Brands, completed the issuance and sale in a private offering of three tranches of fixed rate secured notes with a total aggregate principal amount of $350.0 million. Immediately following the closing of the acquisition of GFG the Company contributed the franchising subsidiaries of GFG to GFG Royalty, pursuant to a Contribution Agreement. On December 15, 2022, 2022, GFG Royalty issued an additional $113.5 million aggregate principal amount of three tranches of fixed rate secured notes. Of the $113.5 million aggregate principal amount, $25.0 million was sold privately during the fourth quarter of 2022. In January 2023, an additional $40.0 million aggregate principal amount was sold privately, resulting in net proceeds of $34.8 million. The remaining $48.5 million in aggregate principal was issued to FAT Brands, Inc., pending sale to third party investors, and has been eliminated in consolidation as of March 26, 2023. The GFG Royalty securitization notes are generally secured by a security interest in substantially all the assets of GFG Royalty and its subsidiaries. Twin Peaks Securitization In connection with the acquisition of Twin Peaks on October 1, 2021, the Company completed the issuance and sale in a private offering through its special purpose, wholly-owned subsidiary, FAT Brands Twin Peaks I, LLC, of three tranches of fixed rate secured notes with a total aggregate principal amount of $250.0 million. Immediately following the closing of the acquisition of Twin Peaks the Company contributed the franchising subsidiaries of Twin Peaks to FAT Brands Twin Peaks I, LLC, pursuant to a Contribution Agreement. The Twin Peaks securitization notes are generally secured by a security interest in substantially all the assets of FAT Brands Twin Peaks I, LLC and its subsidiaries. Fazoli's / Native Securitization In connection with the acquisition of Fazoli's and Native Grill & Wings on December 15, 2021, the Company completed the issuance and sale in a private offering through its special purpose, wholly-owned subsidiary, FAT Brands Fazoli's Native I, LLC, of three tranches of fixed rate secured notes with a total aggregate principal amount of $193.8 million. Immediately following the closing of the acquisition of Fazoli's and Native the Company contributed the franchising subsidiaries of these entities to FAT Brands Fazoli's Native I, LLC, pursuant to a Contribution Agreement. The Fazoli's/Native securitization notes are generally secured by a security interest in substantially all the assets of FAT Brands Fazoli's Native I, LLC and its subsidiaries. Terms and Debt Covenant Compliance The FAT Royalty securitization notes, the GFG Royalty securitization notes, the Twin Peaks securitization notes and the Fazoli's/Native securitization notes (collectively, the "Securitization Notes"), require that the principal (if any) and interest obligations be segregated to ensure appropriate funds are reserved to pay the quarterly principal and interest amounts due. The amount of monthly cash flow that exceeds the required monthly interest reserve is generally remitted to the Company. Interest payments are required to be made on a quarterly basis and, unless repaid on or before July 25, 2023, additional interest equal to 1.0% per annum will accrue on the then outstanding principal balance of each tranche. Principal payments, with an amount equal to 0.5% of the initial principal amount, will be made on the scheduled quarterly payment date on and following the anticipated call date, starting in October 2023. The material terms of the Securitization Notes contain covenants which are standard and customary for these types of agreements, including the following financial covenants: (i) debt service coverage ratio, (ii) leverage ratio and (iii) senior leverage ratio. As of March 26, 2023, the Company was in compliance with these covenants. Elevation Note On June 19, 2019, the Company completed the acquisition of Elevation Burger. A portion of the purchase price included the issuance to the Seller of a convertible subordinated promissory note (the “Elevation Note”) with a principal amount of $7.5 million, bearing interest at 6.0% per annum and maturing in July 2026. The Elevation Note is convertible, under certain circumstances, into shares of the Company’s common stock at $12.00 per share. The annualized effective interest rate for the Elevation Note during the thirteen weeks ended March 26, 2023 was 21.5%. The Elevation Note is a general unsecured obligation of Company and is subordinated in right of payment to all indebtedness of the Company arising under any agreement or instrument to which Company or any of its Affiliates is a party that evidences indebtedness for borrowed money that is senior in right of payment. Equipment Financing (Twin Peaks) During fiscal year 2022, an indirect subsidiary of the Company entered into certain equipment financing arrangements to borrow up to $1.4 million, the proceeds of which will be used to purchase certain equipment for a new Twin Peaks restaurant and to retrofit existing restaurants with equipment (the "Equipment Financing"). The Equipment Financing has maturity dates between August 10, 2027 and April 1, 2028, and bear interest at fixed rates between 7.99% and 8.49% per annum. The Equipment Financing is secured by certain equipment of the Twin Peaks restaurant. Construction Loan Agreement (Twin Peaks) On December 5, 2022, an indirect subsidiary of the Company entered into a construction loan agreement to borrow up to $4.5 million, the proceeds of which will be used for a new corporate Twin Peaks restaurant (the "Construction Loan"). The Construction Loan has an initial maturity of August 5, 2023, with an optional six-month extension, bearing interest at the greater of the 3-month Secured Overnight Financing Rate (SOFR) plus 360 basis points, or 8% per year, and is secured by land and building.

REDEEMABLE PREFERRED STOCK

REDEEMABLE PREFERRED STOCK	3 Months Ended
	Mar. 26, 2023
Equity [Abstract]
REDEEMABLE PREFERRED STOCK	REDEEMABLE PREFERRED STOCK GFG Preferred Stock Consideration On July 22, 2021, the Company completed the acquisition of GFG. A portion of the consideration paid included 3,089,245 newly issued shares of the Company’s Series B Cumulative Preferred Stock valued at $67.3 million (the "GFG Preferred Stock Consideration"). Additionally, on July 22, 2021, the Company entered into a put/call agreement with the GFG sellers, pursuant to which the Company may purchase, or the GFG Sellers may require the Company to purchase, the GFG Preferred Stock Consideration for $67.5 million plus any accrued but unpaid dividends on or before August 20, 2022 (extended from the original date of April 22, 2022), subject to the other provisions of the Put/Call Agreement. Since the Company did not deliver the applicable cash proceeds to the GFG Sellers by that date, the amount accrues interest at the rate of 5% per annum until repayment is completed. On March 22, 2022, the Company received a put notice on the GFG Preferred Stock Consideration and reclassified the GFG Preferred Stock Consideration from redeemable preferred stock to current liabilities on its consolidated balance sheet. As of March 26, 2023, the carrying value of the redeemable preferred stock was $67.5 million. On September 16, 2022, the Company entered into an agreement with one of the GFG sellers who held 1,544,623 put preferred shares. Pursuant to the agreement, the closing date of the redemption was extended from April 22, 2022 to July 23, 2023 and, effective August 23, 2022, the interest rate applicable to such holder's 1,544,623 put shares was increased from 5% to 10% per annum, payable monthly in arrears. In the fiscal quarter ended March 26, 2023, the Company paid $0.8 million for the accrued interest. On March 9, 2023, the Company entered into an agreement with the second GFG seller who held 1,544,623 put preferred shares. Pursuant to the agreement, the closing date of the redemption was extended from April 22, 2022 to July 23, 2023 and, effective August 23, 2022, the interest rate applicable to such holder's 1,544,623 put shares was increased from 5% to 10% per annum, payable on the date of redemption. Twin Peaks Preferred Stock Consideration On October 1, 2021, the Company completed the acquisition of Twin Peaks. A portion of the consideration paid included 2,847,393 shares of the Company’s Series B Cumulative Preferred Stock (the "Twin Peaks Preferred Stock Consideration") valued at $67.5 million. On October 1, 2021, the Company and the Twin Peaks Seller entered into a Put/Call Agreement (the “Put/Call Agreement”) pursuant to which the Company was granted the right to call from the Twin Peaks Seller, and the Twin Peaks Seller was granted the right to put to the Company, the Initial Put/Call Shares at any time until March 31, 2022 for a cash payment of $42.5 million, and the Secondary Put/Call Shares at any time until September 30, 2022 for a cash payment of $25.0 million (the Initial Put/call Shares together with the Secondary Put/Call Shares total $67.5 million), plus any accrued but unpaid dividends on such shares. Unpaid balances, when due, accrue interest at a rate of 10.0% per annum until repayment is completed. On October 7, 2021, the Company received a put notice on the Initial Put/Call Shares and the Secondary Put/Call Shares. On October 21, 2022, the Company entered into an Exchange Agreement with the Twin Peaks Seller and redeemed 1,821,831 shares of the Company’s 8.25% Series B Cumulative Preferred Stock at a price of $23.69 per share, plus accrued and unpaid dividends to the date of redemption in exchange for $46.5 million aggregate principal amount of secured debt ($43.2 million net of debt offering costs and original issue discount) as discussed in Note 8. As of March 26, 2023, the carrying value of the Twin Peaks Preferred Stock Consideration totaled $24.3 million. The Company recognized interest expense relating to the Twin Peaks Preferred Stock Consideration in the amount of $0.6 million during the fiscal quarter ended March 26, 2023.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 26, 2023
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION Effective September 30, 2017, the Company adopted the 2017 Omnibus Equity Incentive Plan (the “Plan”). The Plan was amended on December 20, 2022 to increase the number of shares available for issuance under the Plan. The Plan is a comprehensive incentive compensation plan under which the Company can grant equity-based and other incentive awards to officers, employees and directors of, and consultants and advisers to, FAT Brands Inc. and its subsidiaries. The Plan provides a maximum of 5,000,000 shares available for grant. The Company has periodically issued stock options under the Plan. All of the stock options issued by the Company to date have included a vesting period of three years, with one-third of each grant vesting annually. As of March 26, 2023, there were 2,655,438 shares of stock options outstanding with a weighted average exercise price of $10.21.

WARRANTS

WARRANTS	3 Months Ended
	Mar. 26, 2023
Warrants
WARRANTS	WARRANTS The Company’s warrant activity for the thirteen weeks ended March 26, 2023 was as follows: Number of Weighted Weighted Warrants exercisable at December 25, 2022 1,591,256 $ 3.88 2.4 Exercised (24,046) $ 3.23 2.3 Warrants outstanding and exercisable at March 26, 2023 1,567,210 $ 3.78 2.0 During the thirteen weeks ended March 26, 2023, 24,046 warrants were exercised in exchange for 40,952 shares of common stock with net proceeds to the Company of $0.4 million.

COMMON STOCK

COMMON STOCK	3 Months Ended
	Mar. 26, 2023
Common Stock
COMMON STOCK	COMMON STOCK On January 3, 2023, the Board of Directors declared a cash dividend of $0.14 per share of Class A common stock and Class B common stock, payable on March 1, 2023 to stockholders of record as of February 15, 2023, for a total of $2.3 million. On November 14, 2022, we entered into an ATM Sales Agreement (the "Sales Agreement") with ThinkEquity LLC (the "Agent"), pursuant to which we may offer and sell from time to time through the Agent up to $21,435,000 maximum aggregate offering price of shares of our Class A Common Stock and/or 8.25% Series B Preferred Stock. During the first quarter of 2023, pursuant to the Sales Agreement, we sold and issued 20,826 shares of Series B Cumulative Preferred Stock, at a weighted average share price of $17.95, paid the Agent commissions of $11,213 for such sales and received net proceeds of $362,544 (net of fees and commissions) for such sales.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 26, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation and Investigations James Harris and Adam Vignola, derivatively on behalf of FAT Brands Inc. v. Squire Junger, James Neuhauser, Edward Rensi, Andrew Wiederhorn, Fog Cutter Holdings, LLC and Fog Cutter Capital Group, Inc., and FAT Brands Inc., nominal defendant (Delaware Chancery Court, Case No. 2021-0511) On June 10, 2021, plaintiffs James Harris and Adam Vignola (“Plaintiffs”), putative stockholders of the Company, filed a shareholder derivative action in the Delaware Court of Chancery nominally on behalf of the Company against the Company’s current and former directors (Squire Junger, James Neuhauser, Edward Rensi and Andrew Wiederhorn (the “Individual Defendants”)), and the current and former majority stockholders of the Company, Fog Cutter Holdings, LLC and Fog Cutter Capital Group, Inc. (collectively with the Individual Defendants, “Defendants”). Plaintiffs assert claims of breach of fiduciary duty, unjust enrichment and waste of corporate assets arising out of the Company’s December 2020 merger with Fog Cutter Capital Group, Inc. Defendants filed a motion to dismiss Plaintiffs’ complaint, which the Court denied in an oral ruling on February 11, 2022 and subsequent written order on May 25, 2022. On April 7, 2022, the Court entered a Scheduling Order setting forth the key dates and deadlines that will govern the litigation, including a discovery cutoff of March 24, 2023 and trial date of February 5-9, 2024. To date, the parties have engaged in substantial written discovery, though no depositions have been taken. On February 3, 2023, the Company’s Board of Directors appointed a Special Litigation Committee ("SLC"), which retained independent counsel and moved for a six-month stay of the proceedings pending resolution of the SLC's investigation. On February 17, 2023, the Court granted the SLC’s motion to stay. On April 5, 2023, the Court granted Plaintiff's motion to lift the stay of the proceedings. On May 2, 2023, the Court entered a Second Amended Pre-Trial Scheduling Order resetting key dates and deadlines that will govern the litigation, including a fact discovery cutoff of August 4, 2023, and a trial date to be set sometime after May 10, 2023. Defendants dispute the allegations of the lawsuit and intend to vigorously defend against the claims. We cannot predict the outcome of this lawsuit. This lawsuit does not assert any claims against the Company. However, subject to certain limitations, we are obligated to indemnify our current and former directors in connection with defense costs for the lawsuit and any related litigation, which may exceed coverage provided under our insurance policies, and thus could have an adverse effect on our financial condition and results of operations. The lawsuit and any related litigation also may be time-consuming and divert the attention and resources of our management. James Harris and Adam Vignola, derivatively on behalf of FAT Brands Inc. v. Squire Junger, James Neuhauser, Edward Rensi, Andrew Wiederhorn and Fog Cutter Holdings, LLC, and FAT Brands Inc., nominal defendant (Delaware Chancery Court, Case No. 2022-0254) On March 17, 2022, plaintiffs James Harris and Adam Vignola (“Plaintiffs”), putative stockholders of the Company, filed a shareholder derivative action in the Delaware Court of Chancery nominally on behalf of the Company against the Company’s current and former directors (Squire Junger, James Neuhauser, Edward Rensi and Andrew Wiederhorn (the “Individual Defendants”)), and the Company’s majority stockholder, Fog Cutter Holdings, LLC (collectively with the Individual Defendants, “Defendants”). Plaintiffs assert claims of breach of fiduciary duty in connection with the Company’s June 2021 recapitalization transaction. On May 27, 2022, Defendants filed a motion to dismiss Plaintiff's complaint (the "Motion"). Argument on the Motion was heard on November 17, 2022, and again on February 23, 2023, and the Court took its decision under advisement. The Court denied the motion on April 5, 2023. On May 2, 2023, the Court entered a pre-trial scheduling order setting key dates and deadlines that will govern the litigation, including a fact discovery cutoff of February 2, 2024, and a trial date to be set sometime after October 15, 2024. Defendants dispute the allegations of the lawsuit and intend to vigorously defend against the claims. As this matter is still in the early stages, we cannot predict the outcome of this lawsuit. This lawsuit does not assert any claims against the Company. However, subject to certain limitations, we are obligated to indemnify our current and former directors in connection with defense costs for the lawsuit and any related litigation, which may exceed coverage provided under our insurance policies, and thus could have an adverse effect on our financial condition and results of operations. The lawsuit and any related litigation also may be time consuming and divert the attention and resources of our management. Government Investigations In December 2021, the U.S. Attorney’s Office for the Central District of California (the “U.S. Attorney”) and the U.S. Securities and Exchange Commission (the “SEC”) informed the Company that they had opened investigations relating to the Company and our former Chief Executive Officer, Andrew Wiederhorn, and were formally seeking documents and materials concerning, among other things, the Company’s December 2020 merger with Fog Cutter Capital Group Inc., transactions between those entities and Mr. Wiederhorn, as well as compensation, extensions of credit and other benefits or payments received by Mr. Wiederhorn or his family from those entities. From August 23, 2022 until March 28, 2023, our Board of Directors maintained a Special Review Committee (the “SRC”) comprised of directors other than Mr. Wiederhorn to oversee a review of the issues raised by the U.S. Attorney and SEC investigations. The Company intends to cooperate with the U.S. Attorney and the SEC regarding these matters and is continuing to actively respond to inquiries and requests from the U.S. Attorney and the SEC. We believe that the Company is not currently a target of the U.S. Attorney’s investigation. At this stage, we are not able to reasonably estimate or predict the outcome or duration of either of the U.S. Attorney’s or the SEC’s investigations. Stratford Holding LLC v. Foot Locker Retail Inc. (U.S. District Court for the Western District of Oklahoma, Case No. 5:12-cv-772-HE) In 2012 and 2013, two property owners in Oklahoma City, Oklahoma sued numerous parties, including Foot Locker Retail Inc. and our subsidiary Fog Cutter Capital Group Inc. (now known as Fog Cutter Acquisition, LLC), for alleged environmental contamination on their properties, stemming from dry cleaning operations on one of the properties. The property owners seek damages in the range of $12.0 million to $22.0 million. From 2002 to 2008, a former Fog Cutter subsidiary managed a lease portfolio, which included the subject property. Fog Cutter denies any liability, although it did not timely respond to one of the property owners’ complaints and several of the defendants’ cross-complaints and thus is in default. The parties are currently conducting discovery, and the matter is scheduled for trial for October 2023. The Company is unable to predict the ultimate outcome of this matter, however, reserves have been recorded on the balance sheet relating to this litigation. There can be no assurance that the defendants will be successful in defending against these actions. SBN FCCG LLC v FCCGI (Los Angeles Superior Court, Case No. BS172606) SBN FCCG LLC (“SBN”) filed a complaint against Fog Cutter Capital Group, Inc. (“FCCG”) in New York state court for an indemnification claim (the “NY case”) stemming from an earlier lawsuit in Georgia regarding a certain lease portfolio formerly managed by a former FCCG subsidiary. In February 2018, SBN obtained a final judgment in the NY case for a total of $0.7 million, which included $0.2 million in interest dating back to March 2012. SBN then obtained a sister state judgment in Los Angeles Superior Court, Case No. BS172606 (the “California case”), which included the $0.7 million judgment from the NY case, plus additional statutory interest and fees, for a total judgment of $0.7 million. In May 2018, SBN filed a cost memo, requesting an additional $12,411 in interest to be added to the judgment in the California case, for a total of $0.7 million. In May 2019, the parties agreed to settle the matter for $0.6 million, which required the immediate payment of $0.1 million, and the balance to be paid in August 2019. FCCG wired $0.1 million to SBN in May 2019, but has not yet paid the remaining balance of $0.5 million. The parties have not entered into a formal settlement agreement, and they have not yet discussed the terms for the payment of the remaining balance. SBN FCCG LLC v FCCGI (Supreme Court of the State of New York, County of New York, Index No. 650197/2023) On January 13, 2023, SBN filed another complaint against FCCG in New York state court for an indemnification claim stemming from a lawsuit in Oklahoma City regarding the same lease portfolio formerly managed by Fog Cap, and a bankruptcy proceedings involving Fog Cap. SBN alleges that under a February 2008 stock purchase agreement, Fog Cutter is required to indemnify SBN and its affiliates. According to the complaint, SBN has, at the time of filing the complaint, incurred costs subject to indemnification of approximately $12 million. We are unable at this time to express any opinion as to the outcome of this matter or as to the possible range of loss, if any. The Company is involved in other claims and legal proceedings from time-to-time that arise in the ordinary course of business, including those involving the Company’s franchisees. The Company does not believe that the ultimate resolution of these actions will have a material adverse effect on its business, financial condition, results of operations, liquidity or capital resources. As of March 26, 2023, the Company had accrued an aggregate of $5.1 million for the specific matters mentioned above and claims and legal proceedings involving franchisees as of that date.

GEOGRAPHIC INFORMATION

GEOGRAPHIC INFORMATION	3 Months Ended
	Mar. 26, 2023
Geographic Information And Major Franchisees
GEOGRAPHIC INFORMATION	GEOGRAPHIC INFORMATION Revenue by geographic area was as follows (in millions): Thirteen Weeks Ended March 26, 2023 March 27, 2022 United States $ 102.7 $ 95.4 Other countries 3.0 2.0 Total revenue $ 105.7 $ 97.4 Revenue is shown based on the geographic location of our company-owned and franchisees’ restaurants. All assets are located in the United States. During the thirteen weeks ended March 26, 2023 and March 27, 2022, no individual franchisee accounted for more than 10% of the Company’s revenue.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 26, 2023
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation – The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Our revenues are derived primarily from two sales channels, franchised restaurants and company-owned locations, which we operate as one reportable segment.
Nature of operations	Nature of operations – The Company operates on a 52-week calendar and its fiscal year ends on the last Sunday of the calendar year. Consistent with industry practice, the Company measures its stores’ performance based upon 7-day work weeks. Using the 52-week cycle ensures consistent weekly reporting for operations and ensures that each week has the same days since certain days are more profitable than others. The use of this fiscal year means a 53rd week is added to the fiscal year every 5 or 6 years, as is the case for fiscal year 2023. In a 52-week year, all four quarters are comprised of 13 weeks. In a 53-week year, one extra week is added to the fourth quarter.
Use of estimates in the preparation of the condensed consolidated financial statements	Use of estimates in the preparation of the condensed consolidated financial statements – The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Significant estimates include the determination of fair values of goodwill and other intangible assets, allowances for uncollectible notes receivable and accounts receivable, and the valuation allowance related to deferred tax assets. Estimates and assumptions also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Financial statement reclassification	Financial statement reclassification – Certain account balances from prior periods have been reclassified in these condensed consolidated financial statements to conform to current period classifications.
Recently adopted accounting standards	Recently Adopted Accounting Standards In March 2022, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2022-02, Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The purpose of this amendment is to enhance disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. It requires that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases. The amendments should be applied prospectively and are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASC No. 2022-02 for the fiscal year beginning December 26, 2022, which did not have an effect on the Company's condensed consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326)-Measurement of Credit Losses on Financial Instruments . This guidance replaced the previous incurred loss impairment methodology. Under the new guidance, on initial recognition and at each reporting period, an entity is required to recognize an allowance that reflects its current estimate of credit losses expected to be incurred over the life of the financial instrument based on historical experience, current conditions and reasonable and supportable forecasts. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates (“ASU 2019-10”) . The purpose of this amendment was to create a two-tier rollout of major updates, staggering the effective dates between larger public companies and all other entities. This granted certain classes of companies, including Smaller Reporting Companies (“SRCs”), additional time to implement major FASB standards, including ASU 2016-13. Larger public companies had an effective date for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All other entities were permitted to defer adoption of ASU 2016-13, and its related amendments, until fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company meets the definition of an SRC and adopted the deferral period for ASU 2016-13. The guidance requires a modified retrospective transition approach through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption, if applicable. The Company adopted ASU No. 2016-13 for the fiscal year beginning December 26, 2022. The adoption did not require an adjustment to retained earnings and did not have an effect on the Company's condensed consolidated financial statements.

REFRANCHISING (Tables)

REFRANCHISING (Tables)	3 Months Ended
	Mar. 26, 2023
Refranchising
Schedule of Assets Classified as Held for Sale	The following assets used in the operation of certain restaurants meet all of the criteria requiring that they be classified as held-for-sale, and have been classified accordingly in the accompanying condensed consolidated balance sheets as of March 26, 2023 and December 25, 2022 (in millions): March 26, 2023 December 25, 2022 Property and equipment $ 0.6 $ 0.7 Operating lease right-of-use assets 3.4 4.1 Total $ 4.0 $ 4.8
Schedule of Operating Results of Refranchising Program	The following table highlights the operating results of the Company's refranchising program (in millions): Thirteen Weeks Ended March 26, 2023 March 27, 2022 Restaurant costs and expenses, net of revenue $ 0.3 $ 0.5 Gain on store sales or closures (0.1) — Refranchising loss $ 0.2 $ 0.5

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	3 Months Ended
	Mar. 26, 2023
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment, Net	Property and equipment, net consists of the following (in millions): March 26, 2023 December 25, 2022 Real estate $ 69.0 $ 67.7 Equipment 27.2 26.5 $ 96.2 $ 94.2 Accumulated depreciation (18.3) (15.0) Property and equipment, net $ 77.9 $ 79.2

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)	3 Months Ended
	Mar. 26, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Carrying Value of Goodwill and Other Intangible Assets and Gross Carrying Value and Accumulated Amortization of Other Intangible Assets	Changes in Carrying Value of Goodwill and Other Intangible Assets (in millions) Amortizing Intangible Assets Non-Amortizing Intangible Assets Goodwill Trademarks December 25, 2022 $ 162.1 $ 293.3 $ 463.2 Amortization (3.8) — — March 26, 2023 $ 158.3 $ 293.3 $ 463.2 Gross Carrying Value and Accumulated Amortization of Other Intangible Assets (in millions) March 26, 2023 December 25, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizing intangible assets Franchise agreements $ 109.2 $ (17.2) $ 92.0 $ 109.2 $ (14.8) $ 94.4 Customer relationships 73.9 (9.5) 64.4 73.9 (8.1) 65.8 Other 2.1 (0.2) 1.9 2.1 (0.2) 1.9 $ 185.2 $ (26.9) $ 158.3 $ 185.2 $ (23.1) $ 162.1 Non-amortizing intangible assets Trademarks 463.2 463.2 Total amortizing and non-amortizing intangible assets, net $ 621.5 $ 625.3
Schedule of Expected Future Amortization of Capitalized Franchise Agreements	The expected future amortization of definite-life intangible assets by fiscal year (in millions): Fiscal Year: Remainder of 2023 $ 11.2 2024 14.7 2025 14.5 2026 14.5 2027 14.5

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 26, 2023
Income Tax Disclosure [Abstract]
Schedule of Provision for Income Taxes	The following table presents the Company’s provision for income taxes (in millions): Thirteen Weeks Ended March 26, 2023 March 27, 2022 Provision for income taxes $ 2.5 $ 4.5 Effective tax rate (8.6) % (23.5) %

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 26, 2023
Leases [Abstract]
Summary of Operating Lease Right of Use Assets and Operating Lease Liabilities	Operating lease right-of-use assets and operating lease liabilities relating to the operating leases are as follows (in millions): March 26, December 25, Operating lease right-of-use assets $ 100.8 $ 101.1 Right-of-use assets classified as held-for-sale 3.5 4.1 Total right-of-use assets $ 104.3 $ 105.2 Operating lease liabilities $ 110.3 $ 110.4 Lease liabilities related to assets held-for-sale 3.4 4.1 Total operating lease liabilities $ 113.7 $ 114.5
Contractual Future Maturities of Operating Lease Liabilities	The contractual future maturities of the Company’s operating lease liabilities as of March 26, 2023, including anticipated lease extensions, are as follows (in millions): Fiscal year: Remainder of 2023 $ 14.6 2024 16.0 2025 15.4 2026 14.1 2027 13.8 Thereafter 168.1 Total lease payments $ 242.0 Less imputed interest (128.3) Total $ 113.7
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information for the thirteen weeks ended March 26, 2023 related to leases was as follows (in millions): Thirteen Weeks Ended March 26, 2023 March 27, 2022 Cash paid for amounts included in the measurement of operating lease liabilities: Operating cash flows from operating leases $ 4.4 $ 4.3

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 26, 2023
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consisted of the following (in millions): March 26, 2023 December 25, 2022 Final Maturity Anticipated Call Date Rate Face Value Book Value Book Value Senior Debt FB Royalty Securitization 4/25/2051 7/25/2023 4.75 % $ 139.8 $ 135.6 $ 135.3 GFG Royalty Securitization 7/25/2051 7/25/2023 6.00 % 274.0 264.4 228.9 Twin Peaks Securitization 7/25/2051 7/25/2023 7.00 % 150.0 148.1 147.5 Fazoli's/Native Securitization 7/25/2051 7/25/2023 6.00 % 128.8 125.4 124.8 Senior Subordinated Debt FB Royalty Securitization 4/25/2051 7/25/2023 8.00 % 46.6 45.3 45.2 GFG Royalty Securitization 7/25/2051 7/25/2023 7.00 % 84.0 82.1 82.0 Twin Peaks Securitization 7/25/2051 7/25/2023 9.00 % 50.0 48.0 47.3 Fazoli's/Native Securitization 7/25/2051 7/25/2023 7.00 % 25.0 23.7 23.5 Subordinated Debt FB Royalty Securitization 4/25/2051 7/25/2023 9.00 % 34.6 32.3 32.1 GFG Royalty Securitization 7/25/2051 7/25/2023 9.50 % 57.0 53.8 53.5 Twin Peaks Securitization 7/25/2051 7/25/2023 10.00 % 50.0 46.7 45.5 Fazoli's/Native Securitization 7/25/2051 7/25/2023 9.00 % 40.0 37.3 37.0 Total Securitized Debt 1,079.8 1,042.7 1,002.6 Elevation Note 7/19/2026 N/A 6.00 % 4.0 3.5 3.9 Equipment Notes 5/5/2027 to 3/7/2029 N/A 7.99% to 8.49% 1.4 1.3 1.3 Twin Peaks Construction Loan 8/5/2023 N/A 8.00 % 0.7 0.7 0.4 Twin Peaks Construction Loan II 1/9/2024 N/A 10.83 % 0.8 0.8 — Total Debt $ 1,086.7 1,049.0 1,008.2 Current portion of long-term debt (28.6) (49.6) Long-term Debt $ 1,020.4 $ 958.6

WARRANTS (Tables)

WARRANTS (Tables)	3 Months Ended
	Mar. 26, 2023
Warrants
Schedule of Warrant Activity	The Company’s warrant activity for the thirteen weeks ended March 26, 2023 was as follows: Number of Weighted Weighted Warrants exercisable at December 25, 2022 1,591,256 $ 3.88 2.4 Exercised (24,046) $ 3.23 2.3 Warrants outstanding and exercisable at March 26, 2023 1,567,210 $ 3.78 2.0

GEOGRAPHIC INFORMATION (Tables)

GEOGRAPHIC INFORMATION (Tables)	3 Months Ended
	Mar. 26, 2023
Geographic Information And Major Franchisees
Schedule of Revenues by Geographic Area	Revenue by geographic area was as follows (in millions): Thirteen Weeks Ended March 26, 2023 March 27, 2022 United States $ 102.7 $ 95.4 Other countries 3.0 2.0 Total revenue $ 105.7 $ 97.4

ORGANIZATION AND RELATIONSHIPS

ORGANIZATION AND RELATIONSHIPS (Details) $ in Thousands	3 Months Ended
	Mar. 26, 2023 USD ($) location franchise	Mar. 27, 2022 USD ($)	Dec. 25, 2022 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of franchise brands | franchise	17
Number of locations | location	2,300
Percent of total restaurants franchised	95%
Income from operations	$ 387	$ 485
Accumulated deficit	(210,793)		$ (178,667)
Working capital	(128,800)
Redeemable preferred stock, current portion	91,836		91,836
Unrestricted cash	46,188		$ 28,668
Principal amount	1,086,700
Fixed Rate Secured Notes
Debt Securities, Available-for-Sale [Line Items]
Debt securities	$ 48,500

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)	3 Months Ended
	Mar. 26, 2023 segment salesChannel
Accounting Policies [Abstract]
Number of sales channels | salesChannel	2
Number of reportable segments | segment	1

REFRANCHISING - Schedule of Rem

REFRANCHISING - Schedule of Remaining Assets Classified as Held for Sale (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Refranchising
Property and equipment	$ 600	$ 700
Operating lease right-of-use assets	3,400	4,100
Total	$ 4,033	$ 4,767

REFRANCHISING - Narrative (Deta

REFRANCHISING - Narrative (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Refranchising
Liabilities related to assets classified as held for sale	$ 3,420	$ 4,084

REFRANCHISING - Schedule of Ope

REFRANCHISING - Schedule of Operating Results of Refranchising Program (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Long Lived Assets Held-for-sale [Line Items]
Refranchising loss	$ 159	$ 548
Restaurant sales | Assets classified as held for sale
Long Lived Assets Held-for-sale [Line Items]
Restaurant costs and expenses, net of revenue	300	500
Gain on store sales or closures	(100)	0
Refranchising loss	$ 200	$ 500

PROPERTY AND EQUIPMENT, NET - C

PROPERTY AND EQUIPMENT, NET - Carrying Value of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 96,200	$ 94,200
Accumulated depreciation	(18,300)	(15,000)
Property and equipment, net	77,850	79,189
Real estate
Property, Plant and Equipment [Line Items]
Property and equipment, gross	69,000	67,700
Equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 27,200	$ 26,500

PROPERTY AND EQUIPMENT, NET - N

PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Property, Plant and Equipment [Abstract]
Depreciation	$ 3.3	$ 2.9

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in Carrying Value of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Finite-Lived Intangible Assets [Roll Forward]
Amortizing Intangible Assets, Beginning balance	$ 162.1
Amortization of Intangible Assets	(3.8)	$ (3.7)
Amortizing Intangible Assets, Ending balance	158.3
Goodwill [Roll Forward]
Goodwill, Beginning balance	293.3
Goodwill, Ending balance	293.3
Trademarks
Indefinite-Lived Intangible Assets [Roll Forward]
Trademarks, Beginning balance	463.2
Trademarks, Ending balance	$ 463.2

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Gross Carrying Value and Accumulated Amortization (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 185,200	$ 185,200
Accumulated Amortization	(26,900)	(23,100)
Net Carrying Amount	158,300	162,100
Total amortizing and non-amortizing intangible assets, net	621,547	625,294
Trademarks
Finite-Lived Intangible Assets [Line Items]
Non-amortizing intangible assets	463,200	463,200
Franchise agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	109,200	109,200
Accumulated Amortization	(17,200)	(14,800)
Net Carrying Amount	92,000	94,400
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	73,900	73,900
Accumulated Amortization	(9,500)	(8,100)
Net Carrying Amount	64,400	65,800
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,100	2,100
Accumulated Amortization	(200)	(200)
Net Carrying Amount	$ 1,900	$ 1,900

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 3.8	$ 3.7

GOODWILL AND OTHER INTANGIBLE_6

GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Expected Future Amortization (Details) $ in Millions	Mar. 26, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2023	$ 11.2
2024	14.7
2025	14.5
2026	14.5
2027	$ 14.5

INCOME TAXES - Schedule of Prov

INCOME TAXES - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,536	$ 4,524
Effective tax rate	(8.60%)	(23.50%)
Statutory tax rate	21%	21%

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022	Dec. 25, 2022
Leases [Abstract]
Lease expense recognized	$ 4,800	$ 4,500
Operating lease liability, current portion	$ 14,934		$ 14,815

LEASES - Summary of Operating L

LEASES - Summary of Operating Lease Right of Use Assets and Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 26, 2023	Dec. 25, 2022
Lessor, Lease, Description [Line Items]
Operating lease right-of-use assets	$ 100,782	$ 101,114
Corporate Offices and For Certain Restaurant Properties
Lessor, Lease, Description [Line Items]
Operating lease right-of-use assets	104,300	105,200
Operating lease liabilities	113,700	114,500
Corporate Offices and For Certain Restaurant Properties | Continuing operations
Lessor, Lease, Description [Line Items]
Operating lease right-of-use assets	100,800	101,100
Operating lease liabilities	110,300	110,400
Corporate Offices and For Certain Restaurant Properties | Held for sale
Lessor, Lease, Description [Line Items]
Operating lease right-of-use assets	3,500	4,100
Operating lease liabilities	$ 3,400	$ 4,100

LEASES - Schedule of Contractua

LEASES - Schedule of Contractual Future Maturities (Details) - Corporate Offices and For Certain Restaurant Properties - USD ($) $ in Millions	Mar. 26, 2023	Dec. 25, 2022
Lessor, Lease, Description [Line Items]
Remainder of 2023	$ 14.6
2024	16
2025	15.4
2026	14.1
2027	13.8
Thereafter	168.1
Total lease payments	242
Less imputed interest	(128.3)
Total	$ 113.7	$ 114.5

LEASES - Summary of Supplementa

LEASES - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Corporate Offices and For Certain Restaurant Properties
Lessor, Lease, Description [Line Items]
Operating cash flows from operating leases	$ 4.4	$ 4.3

DEBT - Schedule of Securitizati

DEBT - Schedule of Securitization of Notes (Details) - USD ($)	Mar. 26, 2023	Jan. 31, 2023	Dec. 25, 2022	Dec. 15, 2022	Dec. 05, 2022	Sep. 25, 2022	Jul. 06, 2022	Dec. 15, 2021	Oct. 01, 2021	Jul. 22, 2021	Apr. 26, 2021
Debt Instrument [Line Items]
Face Value	$ 1,086,700,000
Book Value	1,049,000,000		$ 1,008,200,000
Long-term debt, current portion	(28,631,000)		(49,611,000)
Long-term debt, net of current portion	1,020,428,000		$ 958,630,000
FB Royalty Securitization
Debt Instrument [Line Items]
Face Value						$ 30,000,000	$ 76,500,000				$ 144,500,000
GFG Royalty Securitization
Debt Instrument [Line Items]
Face Value	$ 48,500,000	$ 40,000,000		$ 113,500,000						$ 350,000,000
Twin Peaks Securitization
Debt Instrument [Line Items]
Face Value									$ 250,000,000
Fazoli's/Native Securitization
Debt Instrument [Line Items]
Face Value								$ 193,800,000
Elevation Note
Debt Instrument [Line Items]
Rate	6%
Equipment Notes | Minimum
Debt Instrument [Line Items]
Rate			7.99%
Equipment Notes | Maximum
Debt Instrument [Line Items]
Rate			8.49%
Senior Debt | FB Royalty Securitization
Debt Instrument [Line Items]
Rate	4.75%
Face Value	$ 139,800,000
Book Value	$ 135,600,000		$ 135,300,000
Senior Debt | GFG Royalty Securitization
Debt Instrument [Line Items]
Rate	6%
Face Value	$ 274,000,000
Book Value	$ 264,400,000		228,900,000
Senior Debt | Twin Peaks Securitization
Debt Instrument [Line Items]
Rate	7%
Face Value	$ 150,000,000
Book Value	$ 148,100,000		147,500,000
Senior Debt | Fazoli's/Native Securitization
Debt Instrument [Line Items]
Rate	6%
Face Value	$ 128,800,000
Book Value	$ 125,400,000		124,800,000
Senior Subordinated Debt | FB Royalty Securitization
Debt Instrument [Line Items]
Rate	8%
Face Value	$ 46,600,000
Book Value	$ 45,300,000		45,200,000
Senior Subordinated Debt | GFG Royalty Securitization
Debt Instrument [Line Items]
Rate	7%
Face Value	$ 84,000,000
Book Value	$ 82,100,000		82,000,000
Senior Subordinated Debt | Twin Peaks Securitization
Debt Instrument [Line Items]
Rate	9%
Face Value	$ 50,000,000
Book Value	$ 48,000,000		47,300,000
Senior Subordinated Debt | Fazoli's/Native Securitization
Debt Instrument [Line Items]
Rate	7%
Face Value	$ 25,000,000
Book Value	$ 23,700,000		23,500,000
Subordinated Debt | FB Royalty Securitization
Debt Instrument [Line Items]
Rate	9%
Face Value	$ 34,600,000
Book Value	$ 32,300,000		32,100,000
Subordinated Debt | GFG Royalty Securitization
Debt Instrument [Line Items]
Rate	9.50%
Face Value	$ 57,000,000
Book Value	$ 53,800,000		53,500,000
Subordinated Debt | Twin Peaks Securitization
Debt Instrument [Line Items]
Rate	10%
Face Value	$ 50,000,000
Book Value	$ 46,700,000		45,500,000
Subordinated Debt | Fazoli's/Native Securitization
Debt Instrument [Line Items]
Rate	9%
Face Value	$ 40,000,000
Book Value	37,300,000		37,000,000
Securitized Debt
Debt Instrument [Line Items]
Face Value	1,079,800,000
Book Value	1,042,700,000		1,002,600,000
Notes Payable, Other Payables | Elevation Note
Debt Instrument [Line Items]
Face Value	4,000,000
Book Value	3,500,000		3,900,000
Notes Payable, Other Payables | Equipment Notes
Debt Instrument [Line Items]
Face Value	1,400,000
Book Value	$ 1,300,000		1,300,000
Notes Payable, Other Payables | Equipment Notes | Minimum
Debt Instrument [Line Items]
Rate	7.99%
Notes Payable, Other Payables | Equipment Notes | Maximum
Debt Instrument [Line Items]
Rate	8.49%
Construction Loan | Twin Peaks Construction Loan
Debt Instrument [Line Items]
Rate	8%				8%
Face Value	$ 700,000				$ 4,500,000
Book Value	$ 700,000		400,000
Construction Loan | Twin Peaks Construction Loan II
Debt Instrument [Line Items]
Rate	10.83%
Face Value	$ 800,000
Book Value	$ 800,000		$ 0

DEBT - Narrative (Details)

DEBT - Narrative (Details)

1 Months Ended

3 Months Ended

9 Months Ended

Mar. 09, 2023 USD ($)

Dec. 05, 2022 USD ($)

Oct. 21, 2022 USD ($) $ / shares shares

Oct. 31, 2023

Jan. 31, 2023 USD ($)

Mar. 26, 2023 USD ($) $ / shares shares

Dec. 25, 2022 USD ($) $ / shares shares

Sep. 25, 2022 USD ($)

Sep. 25, 2022 USD ($) shares

Dec. 15, 2022 USD ($) tranche

Oct. 20, 2022 shares

Jul. 06, 2022 USD ($) iNTEGER

Dec. 15, 2021 USD ($)

Oct. 01, 2021 USD ($)

Jul. 22, 2021 USD ($) tranche

Apr. 26, 2021 USD ($)

Jun. 19, 2019 USD ($) $ / shares

Debt Instrument [Line Items]

Principal amount

$ 1,086,700,000

Outstanding principal balance

$ 1,049,000,000

$ 1,008,200,000

Preferred stock, outstanding (in shares) | shares

3,272,980

3,252,154

Common stock, par value (in dollars per share) | $ / shares

$ 0.0001

$ 0.0001

Elevation Burger

Debt Instrument [Line Items]

Principal amount

$ 7,500,000

Interest rate

6%

Common stock, par value (in dollars per share) | $ / shares

$ 12

Twin Peaks

Debt Instrument [Line Items]

Outstanding principal balance

$ 18,400,000

Interest rate

10%

Twin Peaks | Exchange Arrangement One

Debt Instrument [Line Items]

Option muitiplier | $ / shares

0.86

Twin Peaks | Exchange Arrangement Two

Debt Instrument [Line Items]

Option muitiplier | $ / shares

0.94

Twin Peaks | Exchange Arrangement Three

Debt Instrument [Line Items]

Option muitiplier | $ / shares

0.91

Series B Cumulative Preferred Stock | Twin Peaks

Debt Instrument [Line Items]

Redeemable preferred stock (in shares) | shares

1,821,831

1,821,831

Dividend rate on preferred stock

8.25%

Preferred stock redemption price (in dollars per share) | $ / shares

$ 23.69

Preferred stock, outstanding (in shares) | shares

2,847,393

Secured Debt

Debt Instrument [Line Items]

Principal amount

$ 46,500,000

Outstanding principal balance

$ 43,200,000

FB Royalty Securitization

Debt Instrument [Line Items]

Principal amount

$ 30,000,000

$ 30,000,000

$ 76,500,000

$ 144,500,000

Debt instrument, number of tranche | iNTEGER

3

Net proceeds

27,100,000

Debt offering costs

600,000

600,000

Unamortized discount

$ 2,300,000

$ 2,300,000

GFG Royalty Securitization

Debt Instrument [Line Items]

Principal amount

$ 40,000,000

$ 48,500,000

$ 113,500,000

$ 350,000,000

Net proceeds

$ 25,000,000

Number of tranches | tranche

3

3

Proceeds from issuance of debt

$ 34,800,000

Twin Peaks Securitization

Debt Instrument [Line Items]

Principal amount

$ 250,000,000

Fazoli's/Native Securitization

Debt Instrument [Line Items]

Principal amount

$ 193,800,000

2021 Securitization Notes

Debt Instrument [Line Items]

Increase in interest rate (percent)

1%

2021 Securitization Notes | Forecast | Subsequent Event

Debt Instrument [Line Items]

Principal payment (percent)

0.50%

Elevation Note

Debt Instrument [Line Items]

Interest rate

6%

Effective interest rate percentage

21.50%

Equipment Notes

Debt Instrument [Line Items]

Maximum borrowing capacity

$ 1,400,000

Equipment Notes | Minimum

Debt Instrument [Line Items]

Interest rate

7.99%

Equipment Notes | Maximum

Debt Instrument [Line Items]

Interest rate

8.49%

Twin Peaks Construction Loan | Construction Loan

Debt Instrument [Line Items]

Principal amount

$ 4,500,000

$ 700,000

Outstanding principal balance

$ 700,000

$ 400,000

Interest rate

8%

8%

Debt term extension period

6 months

Twin Peaks Construction Loan | Construction Loan | Secured Overnight Financing Rate (SOFR)

Debt Instrument [Line Items]

Basis spread on variable rate (as a percent)

3.60%

Sarasota Construction Loan | Construction Loan

Debt Instrument [Line Items]

Principal amount

$ 4,500,000

Debt term extension period

3 months

Sarasota Construction Loan | Construction Loan | Secured Overnight Financing Rate (SOFR)

Debt Instrument [Line Items]

Basis spread on variable rate (as a percent)

5.75%

Sarasota Construction Loan | Construction Loan | Minimum

Debt Instrument [Line Items]

Interest rate

4%

REDEEMABLE PREFERRED STOCK - Na

REDEEMABLE PREFERRED STOCK - Narrative (Details) - USD ($)			3 Months Ended		9 Months Ended
	Oct. 21, 2022	Jul. 22, 2021	Mar. 26, 2023	Mar. 27, 2022	Sep. 25, 2022	Dec. 25, 2022	Oct. 20, 2022	Sep. 16, 2022	Aug. 23, 2022	Oct. 01, 2021
Class of Stock [Line Items]
Preferred stock, outstanding (in shares)			3,272,980			3,252,154
Interest expense related to preferred shares			$ 5,043,000	$ 1,999,000
Face amount of debt			1,086,700,000
Principal amount, net of offering costs and original issue discount			1,049,000,000			$ 1,008,200,000
Dividends paid in cash on redeemable preferred stock			0	$ 1,062,000
Secured Debt
Class of Stock [Line Items]
Face amount of debt	$ 46,500,000
Principal amount, net of offering costs and original issue discount	$ 43,200,000
Twin Peaks
Class of Stock [Line Items]
Principal amount, net of offering costs and original issue discount			18,400,000
Series B Cumulative Preferred Stock | Twin Peaks
Class of Stock [Line Items]
Preferred stock, outstanding (in shares)							2,847,393
Redeemable preferred stock (in shares)	1,821,831				1,821,831
Dividend rate on preferred stock	8.25%
Preferred stock redemption price (in dollars per share)	$ 23.69
Series B Cumulative Preferred Stock | GFG Sellers
Class of Stock [Line Items]
Interest rate on preferred stock		5%							10%
Preferred stock, outstanding (in shares)								1,544,623
Interest expense related to preferred shares			800,000
GFG Holdings Inc
Class of Stock [Line Items]
Equity interests transferred		$ 67,500,000
Interest rate on preferred stock		5%
Redeemable preferred stock			67,500,000
GFG Holdings Inc | Series B Cumulative Preferred Stock
Class of Stock [Line Items]
Temporary equity issued (in shares)		3,089,245
Temporary equity issued		$ 67,300,000
Twin Peaks
Class of Stock [Line Items]
Temporary equity issued			24,300,000
Initial put/call share agreement										$ 42,500,000
Secondary put/call share agreement										25,000,000
Contingent consideration										$ 67,500,000
Dividends paid in cash on redeemable preferred stock			$ 600,000
Twin Peaks | Series B Cumulative Preferred Stock
Class of Stock [Line Items]
Temporary equity issued (in shares)										2,847,393
Temporary equity issued										$ 67,500,000
Interest rate on unpaid cash proceeds related to acquisition										10%

SHARE-BASED COMPENSATION - Narr

SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding through share-based compensation agreement (in shares)	2,655,438
Weighted average exercise price of options (in dollars per share)	$ 10.21
Granted (in shares)	0
Share-based compensation plan expense	$ 1.1	$ 2.1
Share-based compensation expense related to non-vested grants	$ 5.4
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Award vesting rights (percent)		33.33%
2017 Omnibus Equity Incentive Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant through share-based compensation agreement (in shares)	5,000,000

WARRANTS - Summary of Warrant A

WARRANTS - Summary of Warrant Activity (Details) - Warrant - $ / shares	3 Months Ended	12 Months Ended
	Mar. 26, 2023	Dec. 25, 2022
Number of Shares
Warrants exercisable, Beginning balance (in shares)	1,591,256
Exercised (in shares)	(24,046)
Warrants outstanding, Ending balance (in shares)	1,567,210	1,591,256
Warrants exercisable, Ending balance (in shares)	1,567,210
Weighted Average Exercise Price
Weighted average exercise price of outstanding warrants, Beginning balance (in dollars per share)	$ 3.88
Weighted average exercise price of warrants exercised (in dollars per share)	3.23
Weighted average exercise price of outstanding warrants, Ending balance (in dollars per share)	3.78	$ 3.88
Weighted average exercise price of exercisable warrants, Ending balance (in dollars per share)	$ 3.78
Weighted Average Remaining Contractual Life (Years)
Weighted average remaining contractual life (in years) of warrants outstanding. Beginning balance		2 years 4 months 24 days
Weighted average remaining contractual life (in years) of warrants exercised	2 years 3 months 18 days
Weighted average remaining contractual life (in years) of warrants outstanding, Ending balance	2 years
Weighted average remaining contractual life (in years) of warrants exercisable, Ending balance	2 years

WARRANTS - Narrative (Details)

WARRANTS - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 26, 2023 USD ($) shares
Warrant Activity
Issuance of common stock through exercise of warrants (in shares)	40,952
Issuance of common and preferred stock | $	$ 0.4
Warrant
Warrant Activity
Warrants exercised (in shares)	24,046

COMMON STOCK - Narrative (Detai

COMMON STOCK - Narrative (Details) - USD ($)			3 Months Ended
	Jan. 03, 2023	Nov. 14, 2022	Mar. 26, 2023	Mar. 27, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cash dividends declared per common share (in dollars per share)	$ 0.14		$ 0.14	$ 0.13
Dividends payable	$ 2,300,000
Issuance of common and preferred stock			$ 439,000	$ 79,000
ATM Sales Agreement | ThinkEquity LLC | Common Class A
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Maximum aggregate offering price		$ 21,435,000
ATM Sales Agreement | ThinkEquity LLC | Series B Preferred Stock
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Dividend rate on preferred stock		8.25%
Issuance of preferred stock (in shares)			20,826
Weighted average price per share (in dollars per share)			$ 17.95
Payments of stock issuance costs			$ 11,213
Issuance of common and preferred stock			$ 362,544

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($)	1 Months Ended			3 Months Ended
	May 31, 2019	May 31, 2018	Feb. 28, 2018	Mar. 26, 2023	Jan. 13, 2023
Minimum
Loss Contingencies [Line Items]
Damages sought				$ 12,000,000
Maximum
Loss Contingencies [Line Items]
Damages sought				22,000,000
SBN FCCG LLC
Loss Contingencies [Line Items]
Payments for legal settlements	$ 100,000
Estimated litigation liability				500,000
SBN FCCG LLC | Fog Cutter Capital Group Inc
Loss Contingencies [Line Items]
Amount awarded to other party related to litigation	600,000
Payments for legal settlements	$ 100,000
Estimated litigation liability				$ 5,100,000
Indemnification costs					$ 12,000,000
SBN FCCG LLC | Fog Cutter Capital Group Inc | New York
Loss Contingencies [Line Items]
Amount awarded to other party related to litigation			$ 700,000
Litigation settlement interest			200,000
SBN FCCG LLC | Fog Cutter Capital Group Inc | California
Loss Contingencies [Line Items]
Amount awarded to other party related to litigation		$ 700,000	700,000
Litigation settlement interest		$ 12,411	$ 700,000

GEOGRAPHIC INFORMATION - Schedu

GEOGRAPHIC INFORMATION - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 26, 2023	Mar. 27, 2022
RestaurantFranchising [Line Items]
Total revenue	$ 105,691	$ 97,403
United States
RestaurantFranchising [Line Items]
Total revenue	102,700	95,400
Other countries
RestaurantFranchising [Line Items]
Total revenue	$ 3,000	$ 2,000