#1FAT BRANDS FRESH. AUTHENTIC. TASTY. FATBURGER TION BURGE R Marble SLAB CREAMERY Buffalo's WORLD FAMOUS WINGS since ON A OH DOG 1946 STICK native grill 1979 wings EARNINGS SUPPLEMENT Q2 2023 AUGUST 3, 2023 HURRICANE GRILL & WINGS TWIN PEAKS EATS DRINKS SCENIC VIEWS BONANZA STEAKHOUSE PONDEROSA STEAKHOUSE Johnny Rockets BURGERS, SHAKES, FRIES & FUN YALLA mediterranean FAZOLI'S ROUND TABLE PIZZA ROYALTY PRETZELMAKER GREAT AMERICAN cookies FACE 795 8TH WITH TWIST! PRETZEL DES SPRITZEL BITES PRETZELMAKER ww3anH BTW atba A 279 GREAT AMERICAN са G GREAT & NEPOS FATBURGER O PRETZELMACE FRESH SCE 1991 SKO CITY CUSTON COOKIE CAKES MUS FRESH 1991 PRETZELMAKER CHA MIE M18 Marble PLAD 536 Viiton ROUND TABLE PIZZA ROYALTY Johnn STIC#2LEGAL DISCLAIMER This Earnings Supplement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the future financial performance and growth of the Company, the Company's ability to open stores in the development pipeline, and the Company's ability to conduct future accretive and successful acquisitions and integrate acquired brands. Forward-looking statements reflect the Company's expectations concerning the future and are subject to significant business, economic and competitive risks, uncertainties and contingencies including, but not limited to, uncertainties surrounding the severity, duration and effects of the COVID-19 pandemic. These risks, uncertainties and contingencies are difficult to predict and beyond our control, and could cause our actual results to differ materially from those expressed or implied in such forward-looking statements. We refer you to the documents that we file from time to time with the Securities and Exchange Commission, including our reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause our actual results to differ materially from our current expectations and from the forward-looking statements contained in this Earnings Supplement. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this Earnings Supplement. I FAT FRESH. AUTHENTIC. TASTY. BRANDS 2#3YTD Q2 2023 HIGHLIGHTS (1) (2) (3) (4) 4.6% Sales Growth (¹) YTD Q2 2023 v YTD 02 2022 System-Wide 66 New Store Openings YTD 02 2023 (3) FRE FATBURGER FAT FRESH. AUTHENTIC. TASTY. BRANDS WORBEDANC 1.9% SSS Growth (2) YTD 02 2023 v YTD 02 2022 System-Wide UR G $212.5mm Total Revenue 02 2023 14 KERTBURGER FATLJAGER FIND THE FATBURGER PONDEROSA ES-FOOD-EL $1,132.5mm System-Wide Sales YTD 02 2023 $42.3mm Adj. EBITDA (4) QUAD CHALLENGE CONQUEN THE QUAD CHAL WALL OF FAME CHAMP THEIR PHOT pak BONDEROSA BONANZA 02 2023 ************‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ DO YOU HAVE WHAT IT TAKES TO BE A CHAMPION? System-wide sales growth reflects the percentage change in sales in any given fiscal period compared to the prior fiscal period for all stores in that brand only when the brand is owned by FAT Brands. Because of acquisitions, new store openings and store closures, the stores open throughout both fiscal periods being compared may be different from period to period. Same-store sales growth reflects the change in year-over-year sales for the comparable store base, which we define as the number of stores open and in the FAT Brands system for at least one full fiscal year. For stores that were temporarily closed, sales in the current and prior period are adjusted accordingly. Given our focused marketing efforts and public excitement surrounding each opening, new stores often experience an initial start-up period with considerably higher than average sales volumes, which subsequently decrease to stabilized levels after three to six months. Additionally, when we acquire a brand, it may take several months to integrate fully each location of said brand into the FAT Brands platform. Thus, we do not include stores in the comparable base until they have been open and in the FAT Brands system for at least one full fiscal year. New store openings reflects the number of stores opened during a particular reporting period. The total number of new stores per reporting period and the timing of store openings has, and will continue to have, an impact on our results. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. We use the term EBITDA, as opposed to income from operations, as it is widely used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance. EBITDA is not a measure of our financial performance or liquidity that is determined in accordance with generally accepted accounting principles ("GAAP"), and should not be considered as an alternative to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. Adjusted EBITDA is defined as EBITDA (as defined above), excluding expenses related to acquisitions, refranchising gain or losses, impairment charges, and certain non-recurring or non-cash items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations. A reconciliation of net income presented in accordance with GAAP to EBITDA and adjusted EBITDA is set forth in the Appendix. 3#4YTD 02 2023 VS. YTD Q2 2022 (1) $42.6mm YTD Q2 2022 $1,083.2mm Royalties Systemwide Sales $45.2mm YTD Q2 2023 $1,132.5mm $200.2mm YTD Q2 2022 $44.6mm YTD Q2 2022 Revenue Adj. EBITDA (1) $212.5mm YTD Q2 2023 $42.3mm YTD Q2 2023 YTD Q2 2022 YTD Q2 2023 EBITDA is defined as earnings before interest, taxes, depreciation and amortization. We use the term EBITDA, as opposed to income from operations, as it is widely used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance. EBITDA is not a measure of our financial performance or liquidity that is determined in accordance with generally accepted accounting principles ("GAAP"), and should not be considered as an alternative to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. Adjusted EBITDA is defined as EBITDA (as defined above), excluding expenses related to acquisitions, refranchising gain or losses, impairment charges, and certain non-recurring or non-cash items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations. A reconciliation of net income presented in accordance with GAAP to EBITDA and adjusted EBITDA is set forth in the Appendix. 4#52023 STRATEGIC FOCUS Accelerate Build-Out of 1,000+ Unit New Store Pipeline $60mm of Potential EBITDA Growth Drive Adj. EBITDA Growth ~$10mm p.a. Incremental Growth from New Stores John-$5mm from Factory ROCKER FAT FRESH. AUTHENTIC. TASTY. BRANDS th Maintain Strong Liquidity Continue to Build Net Asset Value for Future Liquidity (Debt Reduction) Event Grow Factory Production to Utilize ~60% Excess Capacity via Expanded Organic Channels & 3rd Party Dough & Mix Manufacturing Realize Purchasing Savings from ~$600mm in Purchasing Power Effectively Reducing Costs HURRICANE 260 5#6APPENDIX %20 Certified Cargonic ED 00% NATION JJ T TINGE CKEN 3DSS= P THE Mond joope Spu Sweer Shakes aut Mill FAT BRANDS FRESH. AUTHENTIC. TASTY. SCAN ME to sign up!#7DEFINITIONS "EBITDA," a non-GAAP measure, defined as earnings before interest, taxes, depreciation and amortization. We use the term EBITDA, as opposed to income from operations, as it is widely used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate to business performance. EBITDA is not a measure of our financial performance or liquidity that is determined in accordance with generally accepted accounting principles ("GAAP") and should not be considered as an alternative to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. A reconciliation of net income presented in accordance with GAAP to EBITDA and adjusted EBITDA is set forth in the Appendix. "Adjusted EBITDA," a non-GAAP measure, defined as EBITDA (as defined above), excluding expenses related to acquisitions, refranchising gain or losses, impairment charges, and certain non-recurring or non-cash items that the Company does not believe directly reflect its core operations and may not be indicative of the Company's recurring business operations. A reconciliation of net income presented in accordance with GAAP to EBITDA and adjusted EBITDA is set forth in the Appendix. "Adjusted net loss," a non-GAAP measure, defined as net loss plus the impact of adjustments and the tax effects of such adjustments. Adjusted net loss is presented because we believe it helps convey supplemental information to investors regarding our performance, excluding the impact of special items that affect the comparability of results in past quarters to expected results in future quarters. Adjusted net loss as presented may not be comparable to other similarly titled measures of other companies, and our presentation of adjusted net loss should not be construed as an inference that our future results will be unaffected by excluded or unusual items. Our management uses this non- GAAP financial measure to analyze changes in our underlying business from quarter to quarter based on comparable financial results. Reconciliations of net loss attributable to FAT Brands Inc. presented in accordance with GAAP to EBITDA, adjusted EBITDA and adjusted net loss are set forth in the Appendix. "Same-store sales growth" or "SSS" a non-GAAP measure, reflects the change in year-over-year sales for the comparable store base, which we define as the number of stores open and in the FAT Brands system for at least one full fiscal year. For stores that were temporarily closed, sales in the current and prior period are adjusted accordingly. Given our focused marketing efforts and public excitement surrounding each opening, new stores often experience an initial start-up period with considerably higher than average sales volumes, which subsequently decrease to stabilized levels after three to six months. Additionally, when we acquire a brand, it may take several months to integrate fully each location of said brand into the FAT Brands platform. Thus, we do not include stores in the comparable base until they have been open and in the FAT Brands system for at least one full fiscal year. "System-wide sales growth," a non-GAAP measure, reflects the percentage change in sales in any given fiscal period compared to the prior fiscal period for all stores in that brand only when the brand is owned by FAT Brands. Because of acquisitions, new store openings and store closures, the stores open throughout both fiscal periods being compared may be different from period to period. I FAT FRESH. AUTHENTIC. TASTY. BRANDS#8CONSOLIDATED STATEMENT OF OPERATIONS FAT Brands Inc. Consolidated Statements of Operations (In thousands) Revenue Royalties Restaurant sales Advertising fees Factory revenues Franchise fees Other revenue Total revenue Costs and expenses General and administrative expense Cost of restaurant and factory revenues Depreciation and amortization Refranchising loss Acquisition costs Advertising fees Total costs and expenses Income from operations Other (expense) income, net Interest expense Interest expense related to preferred shares Other income, net Total other expense, net Loss before income tax provision (benefit) Income tax provision (benefit) Net loss Net loss Dividends on preferred shares Basic and diluted loss per common share Basic and diluted weighted average shares outstanding Cash dividends declared per common share June 25, 2023 $ $ $ $ $ Thirteen Weeks Ended $ 22,751 $ 62,778 9,668 9,686 763 1,118 106,764 9,947 59,502 7,061 179 11,610 88,299 18,465 (20,008) (4,311) 109 (24,210) (5,745) June 26, 2022 1,346 (7,091) S (7,091) $ (1,615) (8,706) $ (0.53) S 16,522,379 0.14 $ 21,665 $ 60,044 9,568 8,570 1,295 1,643 102,785 20,841 49,846 6,711 453 135 11,596 89,582 13,203 (18,998) (4,715) 2,071 (21,642) (8,439) (251) June 25, 2023 (8,188) $ (8,188) $ (1,661) (9,849) $ Twenty-Six Weeks Ended (0.60) $ 16,405,108 0.13 $ 45,236 $ 125,379 19,019 18,851 1,565 2,405 212,455 38,362 118,589 14,177 338 22,137 193,603 18,852 (45,098) (9,354) 265 (54,187) (35,335) June 26, 2022 3,882 (39,217) $ (39,217) $ (3,381) (42,598) $ (2.58) $ 16,521,590 0.28 $ 42,563 118,121 18,929 16,749 2,009 1,817 200,188 45,437 104,644 13,181 1,001 383 21,853 186,499 13,689 (38,026) (6,714) 3,381 (41,359) (27,670) 4,273 (31,943) (31,943) (3,314) (35,257) (2.15) 16,396,896 0.26 ||#9CONSOLIDATED EBITDA & ADJ. EBITDA RECONCILIATION I FAT FRESH. AUTHENTIC. TASTY. BRANDS FAT Brands Inc. Consolidated EBITDA and Adjusted EBITDA Reconciliation (In thousands) Net loss Interest expense, net Income tax provision (benefit) Depreciation and amortization EBITDA Bad debt expense Share-based compensation expenses Non-cash lease expenses Acquisition costs Refranchising loss Litigation costs Severance Net loss related to advertising fund deficit Pre-opening expenses Adjusted EBITDA Thirteen Weeks Ended June 25, 2023 June 26, 2022 $ (7,091) $ 24,319 1,346 7,061 25,635 (13,106) 477 293 179 6,924 1,036 1,688 11 23,137 $ (8,188) $ 23,713 (251) 6,711 21,985 239 1,934 457 134 453 4,308 June 25, 2023 Twenty-Six Weeks Ended 29,510 $ (39,217) $ 54,452 3,882 14,177 33,294 (12,071) 1,572 674 338 14,668 1,036 2,773 40 42,325 $ June 26, 2022 (31,943) 44,740 4,273 13,181 30,251 423 4,046 741 383 1,001 7,264 526 10 44,645 IV#10ADJUSTED NET LOSS RECONCILIATION I FAT FRESH. AUTHENTIC. TASTY. BRANDS FAT Brands Inc. Adjusted Net Income (Loss) Reconciliation (In thousands, except share and per share data) Net loss Refranchising loss Acquisition costs Litigation costs Severance Tax adjustments, net (1) Adjusted net income (loss) Net loss Dividends on preferred shares Adjusted net income (loss) Dividends on preferred shares Loss per basic and diluted share Adjusted net income (loss) per basic and diluted share June 25, 2023 June 26, 2022 $ $ $ $ $ $ $ Thirteen Weeks Ended $ (7,091) $ 179 6,924 1,036 1,907 2,955 $ (7,091) $ (1,615) (8,706) $ 2,955 $ (1,615) 1,340 $ (0.53) $ 0.08 $ (8,188) $ 453 134 4,308 June 25, 2023 June 26, 2022 146 (3,147) $ (8,188) $ (1,661) (9,849) $ (3,147) $ (1,661) (4,808) $ (0.60) $ (0.29) $ Weighted average basic and diluted shares outstanding 16,522,379 16,405,108 (1) Reflects the tax impact of the adjustments using the effective tax rate for the respective periods. Twenty-Six Weeks Ended (39,217) $ 338 14,668 1,036 1,762 (21,413) $ (39,217) $ (3,381) (42,598) $ (21,413) $ (3,381) (24,794) $ (2.58) $ (1.50) $ 16,521,590 (31,943) 1,001 383 7,264 526 (1,417) (24,186) (31,943) (3,314) (35,257) (24,186) (3,314) (27,500) (2.15) (1.68) 16,396,896 V#11CONTACT INVESTOR RELATIONS: ICR MICHELLE MICHALSKI [email protected] 646-277-1224 MEDIA RELATIONS: FAT BRANDS ERIN MANDZIK [email protected] 860-212-6509 Certified Craonic 100% 00% NATION JJ TINGE CKEN 3DSS= P THE Mond joope Spu Sweer Shakes aut Mill FAT BRANDS FRESH. AUTHENTIC. TASTY. SCAN ME to sign up!