Q1 2025 FAT Brands Inc Earnings Call
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Thank you.
Speaker Change: Greetings and welcome to the FAT Brands Inc. 1st quarter 2025 earnings conference call. At this time, all participants are in listening mode.
Speaker Change: A question answered in session will follow the formal presentation. If anyone wants to require your assistance during the conference, please press star one on your telephone, star zero on your telephone, keep that.
Speaker Change: As a reminder, this conference is being recorded. At the time, I'd like to turn the call over to Kent Kuick, type brand CFL. Please proceed.
Ken Kuick: Good afternoon everyone, and thank you for joining the FAT Brands earnings call today. On the call with me today is Andy Wiederhorn, our chairman of the board.
Ken Kuick: Each contain additional details about the first quarter which closed on March 30th, 2025.
Ken Kuick: Before I begin, I must remind everyone that part of the discussion today will include forward-looking statements.
Ken Kuick: These forward-looking statements are not guarantees of future performance and therefore undo reliance should not be placed upon them. Actual results may differ materially from those indicated by these forward-looking statements due to a number of risks and uncertainties.
Ken Kuick: The company does not take, does not undertake to update these forward-looking statements at a later date.
Ken Kuick: For a more detailed discussion of the risks that could impact future operating results and financial condition, please see today's earnings release and recent SEC
Ken Kuick: Here at today's call, the company will also discuss non-GAAP financial measures, which we believe can be useful in evaluating our performance.
Ken Kuick: The presentation of this additional information should not be considered in isolation nor as a substitute for results prepared in accordance with Gap. Reconciliation to comparable GAAP measures are available in today's earnings release. I'd like to turn the call over now to Andy Wiederhorn, our chairman of the board.
Andy Wiederhorn: Thanks Ken. Thank you all for joining us today. I'd like to extend my sincere appreciation to our talented team members and franchise partners. Their dedication to FAT Brands has been instrumental in driving our continued progress, and I'm encouraged by what we are accomplishing together.
Speaker Change: I also want to take a moment to recognize Robert Rosen and his crewman to FAT Brands.
Andy Wiederhorn: Ross decided to transition from his co-CEO role to a consulting position at FAT Brands focused on the debt capital markets.
Andy Wiederhorn: Taylor Wiederhorn has been appointed co-CEO serving alongside Ken Kuick. In addition to serving as Chief Development Officer for the last eight years, Taylor assumed the role of Brands CEO for 15 of our concepts in 2023.
Andy Wiederhorn: That combined with his leadership background makes him well equipped to take on this role.
Andy Wiederhorn: As noted last quarter, we began 2025 by spinning off to an hospitality group ink, which is now listed separately on NASA under the ticker TWNT.
A $50 million dividend.
Andy Wiederhorn: While retaining the remaining shares, this strategic move allows shareholders to invest directly in twin peak growth, improves market transparency, and provides twin hospitality with access to additional capital for expansion and to reduce leverage through debt repayments.
Andy Wiederhorn: Following this significant milestone, Joe Hummel decided to transition from his position as CEO . We wish him the best to see pursues new opportunities.
Speaker Change: We have initiated a comprehensive executive search for new leaders who will capitalize on our ambitious development pipeline of over 100 lodges.
20-piece growth trajectory remains strong.
Speaker Change: In the meantime, Ken Kuick, CFO of Twin Hospitality Group Anqual Service Interim CEO , ensuring continuity and strategic advancement during this transition.
Speaker Change: Following the Twin Hospitality Group Bond Refinancing in Q4 of last year
Speaker Change: We committed to raising between 75 and 100 million of equity in 2025 and using 75 percent of that or 75 million to reduce outstanding debt at which point twin hospitality should be cash for a positive, excluding new corporate sort of element.
Speaker Change: Despite this temporary time and adjustment, we are confident in achieving our full annual equity target raise over the next 12 months.
Speaker Change: Additionally, per the terms of our November 2024 new twin hospitality indenture, we've temporarily paused FAT's common dividend and started to accrue the FAT series B preferred dividend pursuant to its terms, at least until we reduce principle on the indenture by the $25 million payment threshold.
Speaker Change: Additionally, we are now turning our attention to the recent financing of our other three securitization silos, all of which have an anticipated repayment date of July of 2026.
Speaker Change: We are focused on bringing FAT, which is a high growth business into a casual positive position over the coming quarters as well as further reducing leverage.
Speaker Change: We have reduced SGNA by over $5 million a year based upon our 2024 run rate and see further opportunities within the portfolio to reduce costs which I'll discuss in a few minutes.
We look forward to updating you further on future calls.
Speaker Change: Like last quarter, following this call, we invite you to listen to the Twin House Natality Group Q1 earnings call at 6 p.m. Eastern time. The details are contained within their earnings release, also issued this afternoon.
Speaker Change: Next, let's review our first quarter performance, which Ken will elaborate on shortly.
Speaker Change: Our total revenue for the quarter was 142 million, reflecting a 6.5% decrease from the 152 million reported in the same period last year.
Speaker Change: Systemoid Sales were 571.1 million down 1.8% compared to the previous year's quarter.
Speaker Change: We also achieved $11.1 million in adjusted even out compared to $18.2 million in last year's
Speaker Change: Domestic System I-Tales outperformed international for the quarter, however we observed an encouraging rebound in our international locations towards the end of Q1, which gives us confidence moving forward.
Speaker Change: Across our portfolio, we finished the quarter with strong momentum, a similar sales improved across all brands from February to March. We're excited to build on this positive trajectory as we enter Q2 and progress to the remainder of the year.
Speaker Change: How a casual dining segment delivered particularly strong results with same-star sales increasing approximately 1.6% driven by performance at Buffalo's Cafe and Ponderos and Bonanza locations.
Overall, our growth strategy is based upon three fundamental elements.
Speaker Change: We are expanding our existing brand presence organically with commitments for over 1,000 new locations already in the pipeline.
Speaker Change: We are evaluating highly strategic acquisitions to strengthen and broaden our brand portfolio as well as deliver our balance sheet.
Speaker Change: and we're enhancing our production capabilities in our Georgia facility, particularly focusing on scaling our cookie dough and dry mixed manufacturing operations.
Speaker Change: Looking at our organic growth, we've maintained strong momentum. After successfully opening 92 units throughout 2024, we're accelerating our expansion with a target of over 100 new locations this year.
Speaker Change: We're also making excellent headway with 23 units open in just the first quarter, which is an approximate 37% increase from Q1 of 2024.
Speaker Change: For Q2, we expect to open in additional 25 units, keeping this firmly on track to achieve our annual expansion goals.
Speaker Change: We are particularly encouraged by the momentum in our Twin Peaks new sort of development pipeline.
Speaker Change: During the first quarter, Twin Peaks opened two new lodges, including the Smokey Bones conversion in Branding, Florida and a new lodge in a Gone Quinn Illinois. Both new lodges are often strong starts.
Speaker Change: Based on our 2025 Outlook, we expect measured growth across various brands, including Roundtable Pizza, which delivered a modest yet positive 0.6% positive same-store sales increase in the first quarter. Our digital sales at Roundtable Pizza demonstrate particular strength climbing 5% to the country, from Q4 to Q1 2025.
Speaker Change: The 2024 digital integration of our great American cookies and marble slab primary has also yielded strong results, particularly via their new app with an increase in sales of 8% and an increase in average check size of 17.6%
Speaker Change: Our franchise development pipeline remains robust with signed agreements for approximately 1,000 additional locations.
Speaker Change: Based on our projections, these units could generate around $50 million in incremental annual adjusted even I once operational, which would strengthen our balance sheet and reduce our leverage position.
Speaker Change: This consistent development pipeline not only demonstrates the continued appeal of our Brands and also creates a valuable opportunity for our franchise partners.
Speaker Change: Along with our robust development pipeline, we're enhancing the customer experience in our existing stores.
Speaker Change: We've launched a new remodeling initiative with the goal to refresh 5% of all stores in 2025, increasing to 10% in 2026.
Speaker Change: Cobranding continues to be a large part of our growth strategy.
Speaker Change: We have successfully launched 10 co-branded and tri-branded models today, demonstrating our commitment to innovate partnerships.
Speaker Change: In March, we celebrated the debut of our first roundtable pizza and Marbleslav Creamery pairing in Oakland, California. This location exemplifies our approach to seamless integration where Marbleslav's ice cream creates a perfect complement to roundtable pizzas offering, guess, a complete dying experience from the main course dessert.
Speaker Change: He'll be on this moment and we're accelerating our co-branding initiatives throughout 2025.
Speaker Change: We've already opened a tri-branded location featuring Great American Cookies, Marvel Slip Creamery, and Pretzelmaker in the Dallas area. We also opened our first co-branded Great American Cookies and Marvel Slip Creamery in Ohio.
Speaker Change: Additional co-branding plans for 2025 include several new FAT Burger Buffalo's Express and a hot tick on a stick, combinations as well as FAT Burger and Round Table Pizza
Speaker Change: These strategic combinations not only enhance the guest experience but also maximize operational efficiency and market presence positioning us for continued growth.
Speaker Change: International development continues to be a growth driver as well. During the quarter, FAT Brands announced a new partnership to open 30 locations across France over the next three years, including five in 2026.
Speaker Change: Also, more recently, a development agreement was signed with the same established franchise partner to open 10 Buffalo's Cafe Fast Casual locations in France with the first three units set to open by 2026.
Speaker Change: All in all, we have exceeded over 100 new stores sold here today.
Speaker Change: We continue to expand into non-traditional venues, recently opening the FAT Brands Dallas Fort Worth International Airport's American Airlines employee dining hall, the first restaurant franchise in an employee cafeteria at the airport. This strategic location represents a significant growth opportunity that could be replicated across other airports.
Speaker Change: As our burgers and fries are ideal for on-the-go dining. Our experience partners for this location will be valuable as we scale this business model.
Speaker Change: We are also reading into value. There's always is offering fan favorite post editions for just $3.99 plus unlimited freshly baked signature breadsticks when dining in. A family of four can eat for only $16. As FAT Burger we brought back the much loved babysat for only $5.99.
Speaker Change: Well, these offers are attractive. It's the comprehensive value we deliver that truly makes a difference and resonates with our guests.
Speaker Change: Throughout our portfolio, we remained firmly committed to providing exceptional, overall value, combining premium, quality food with an outstanding guest experience.
Speaker Change: We're excited to announce that later this year we'll be launching a portfolio-wide guest experience program that will set new industry standards and is specifically designed to cultivate lasting brand loyalty.
Speaker Change: We continue to strengthen our balance sheet. In April , we amended our Fizzoli's securitization, resulting in improved terms that enhance our financial flexibility. The amended terms have extended both the call date and repayment date while relaxing certain covenants, providing us with greater operational flexibility for Fizzoli's.
Speaker Change: The new agreement also permits the sale of corporate owned stores to franchise these, allowing us to re-franchise our 57 company owned and operated Fizzolese restaurants.
Speaker Change: Re-franchising facilities coupled with the spin-off of Twin Hospitality Group, which includes all Twin Peaks and Snowkeep Loans locations, will significantly reduce our corporate-owned footprint and provide additional overhead savings of approximately $2.5 million per year.
Speaker Change: If we were to act upon this refranchising opportunity, we would retain only about 33 hot dog on the stick corporate locations out of our total portfolio of 2,300 locations, or 2,125 locations if twin pieces Smoky Browns are excluded.
Speaker Change: These strategic moves will return us to an almost 100% franchise business model.
Now, turning to our Growth by Acquisition Strategy.
Speaker Change: During 2025, we are committed to unlocking value, reducing our leverage as the cost of capital remains high. We continue to look at highly strategic targets that could help us achieve those goals.
Speaker Change: Our Georgia Production Facility represents one of our key strategic advantages, generating impressive financial performance with 8.8 million in first quarter sales and 3.1 million in adjusted EBITDA, resulting in an attractive 35% margin.
Speaker Change: This second quarter, we expect to execute on a major strategic initiative for a cookie-dome manufacturing business, namely a third-party contract with a national restaurant entertainment chain. We look forward to building on this momentum and increasing our utilization beyond the current level of 45% of production capacity.
Speaker Change: Our near-term target is reaching 60 to 70 percent utilization, which would substantially enhance the facility's market value and operational efficiency.
Speaker Change: While this asset could eventually help decrease debt through strategic infrastructure, our immediate focus is capitalizing on the growth runway ahead.
Speaker Change: The manufacturing operation remains in its early growth stage with significant untapped potential to drive shareholder value as we execute upon our strategy.
Speaker Change: Before concluding, I'd like to share an update on the FAT Brands Foundation. To date, the Foundation has awarded 10 grants in 2025 and has received a record amount of grant requests for both the months of March and April . This speaks to the commitment of the Board in driving awareness and visibility of the Foundation as it looks to grow its impacts across FAT Brands communities.
Speaker Change: The Foundation's dedication to giving back to our communities is also amplified by our brand ambassador program, which was launched last year. Today, over 35% of our 800 franchisees are actively involved in the program.
Speaker Change: In conclusion, FAT Brands is laser focused on two fronts, that reduction and leveraging our robust pipeline of growth opportunities.
Speaker Change: The energy across our team signals strong momentum. We remain dedicated to maximizing shoulder value and will continue updating you on our progress. With that, I'd like to hand it over to Ken to discuss our financial highlights from the first quarter of 2025.
Ken Kuick: Thanks, A.D., moving on to our first quarter results, total revenues were $142 million, a six and a half percent decrease from $152 million in last year's quarter
Ken Kuick: This was driven by lower same-store sales, and particularly the closure of smoky bones locations for conversion into twin-peaks lodges, partially offset by revenue generated by our new twin-peaks lodges.
Ken Kuick: Turning to costs and expenses, general and administrative expense increased to $33 million in the quarter. From $30 million in the year ago quarter, primarily due to increased professional fees related to pending mitigation.
Ken Kuick: Boss of restaurant and factory revenues decreased to $96.1 million in the quarter compared to $99.1 million in the year ago quarter, primarily due to lower save store sales, partially offset by wage and food cost inflation.
Ken Kuick: Advertising expense varies in relation to advertising revenues and decreased to $11.1 million in the quarter from $12.6 million in the year-go period. Additionally, we slowed down advertising at Smoky Bones as we continue our strategy of converting locations into Twin Peaks lodges.
Ken Kuick: Met loss attributable to FAT Brands was $46 million or $2.73 per diluted share compared to a net loss of $38.3 million for $2.37 per share in the prior year quarter.
Ken Kuick: and on an as-adjusted basis our net loss attributable to FAT Brands was $38.7 million or $2.32 per diluted share compared to $32.9 million or $2.5 per diluted share in the prior year quarter.
Ken Kuick: And lastly, adjusted EBITDA for the quarter was $11.1 million compared to $18.2 million in the year go quarter.
And with that operator, please open the line for questions.
Speaker Change: Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone to keep that and a confirmation tele indicate your lines in the question to you.
Speaker Change: You may first start, too, if you would like to remove your question from the queue.
Speaker Change: for participants using speaker equipment and maybe necessary to pick up your handset before
Speaker Change: And the first question comes from the line of Alton Stump with loop capital markets. Please proceed.
Alton Stump: Thank you. You know, good afternoon. Thanks for taking my questions, you know, as always, and you can. I just wanted to ask about the cookie facility. I think you mentioned.
Speaker Change: You know, Andy, that you expect in the near term to go from 0.45%
Speaker Change: You know, that you've been at as far as utilization here over the last couple quarters. I think that's 60 to 70 percent, which is that often nice to move. You know, from a dollar impact, what kind of, you know, ballpark impact could that have from a, you know, efficiency standpoint, if you do get to that 60 to, you know, 7 percent utilization range?
Speaker Change: Getting these contracts in place, there's multiple initiatives going on that's just one of them that won't do it by itself, the one that we're going to announce shortly, but there's a lot of momentum behind
Speaker Change: That initial program, and I think it'll cause the other two or three to drop in place right away.
Speaker Change: Brett, if we get the facility up to that level, then it's probably an asset that...
Speaker Change: could generate $300 plus $9.00 in proceeds for debt reduction at some point.
Speaker Change: Got it. Thanks for that, Culler. I just wanted to ask, you guys obviously have almost 20 different concepts. It was clearly a tough quarter for the industry-wide. Obviously, the weather was certainly not helpful. There's, of course, a lot of back-road news. What's your kind of general sense?
Speaker Change: across your brands, from a consumer standpoint, how much value, focus do you think that in general, that you're going to have to do with the concepts over the couple quarters, if the current consumer environment does not improve?
Speaker Change: I mean the consumer's apprehensive, the consumer confidence level is mixed, it's definitely event-driven, so we're seeing bubbles of exuberance and then we're seeing people, you know, pair-back terms of the traffic and it's that's, you know, within a brand, not just a cross-brand.
Speaker Change: So, you know, I think this value, as we talk about value and you've seen QSR brands in the industry sort of abandon their value play.
Consumers are, you know, they've had it with price and yet.
Speaker Change: They still want to go out and go into restaurants and, you know, take advantage of the great experience. You just have to give them a great experience to justify what they're paying for it. And so I think that's going to continue for the rest of the year. I know there's
Speaker Change: A lot of brands that are betting on the second half of the year that things are going to all of a sudden be amazing and we'll have to see, you know, we are
Speaker Change: We're trying different initiatives to drive traffic and we're going to continue to do that and take advantage of the fact that we have great products to offer so people want to come to our brands. We just have to give them the value.
Alton Stump: Got a great thinking. And then, you know, it's just the last thing and I'll hop back in the hearing. But just, you know, as far as, you know, like,
Alton Stump: just put the delay with the first crotch that you are committed to raise obviously.
Speaker Change: in the aftermath of, you know, the Twin Peaks, you know, I'd be, I guess, you know, how much long I think that would take, and is there any deadlines that you sort of have to stick to when it comes to raising that money over course of year?
Alton Stump: Yeah, I think there's no gun to our head that the reality is the equity markets, you know, for restaurant stocks are a lot of different.
Alton Stump: Industries, the shades are drawn, the windows closed, and so we just got to wait for it to open up. I think if we had been able to get the spin-off done in the fourth quarter of last year, we would have been able to sort of ride the Trump Euphoria wave in very early in Q1 and
Alton Stump: By the time we went out and had some on-deal rojo meetings and confidential discussions.
Alton Stump: Testing the water types of meetings. Everyone loves the concept. Everyone loves what we're doing. People are concerned about the leverage. Of course, the majority of the proceeds pay down the leverage so they're happy with that. But at the end of the day, they just point to the market and volatility and say, I got a weight, I'm sitting on my hands until volatility calms down.
that, you know, we're fortunate that
Alton Stump: is nothing that really happens within the debt indenture that's, you know, of any real consequence and so we're just going to write it out.
Alton Stump: I think our bondholders have been extremely supportive.
Alton Stump: and as I indicated in our call earlier, we are talking about refinancing the remaining silos from the securization just so that we are well ahead of the July 26th.
Alton Stump: Anticipated Repayment Date. And so, you know, we have over a year, but hopefully we'll get that done, you know, sometime in Q2 or Q3 more likely. And that probably includes some modifications to the Twin Peaks deal as well, just because the equity race is taking longer.
Alton Stump: That is very good here and also very helpful. Thanks so much. I'll hide back in the queue. Thank you.
Speaker Change: The next question comes from the line of Joe Gomes with noble capital markets. Please proceed.
See you afternoon and thank you for taking my questions.
I joke.
Speaker Change: So just want to make sure I understand this all correctly. So if I look at the three main revenue lines in a royal piece, we're pretty flat, you're over a year.
The co-owned restaurant sales were down about 6.2%
Speaker Change: and I'm assuming that's the smoky bones that was closed and then some of the same store sales decline. And then the factory revenue was off about 7%, not a big number, but just still off about 7%.
Speaker Change: I just want to make sure that there was anything else besides the same store sales decline and the absence of the smoky bones that was driving those numbers.
Speaker Change: You are right that, from a revenue-intensive sales, you have royalties that are consistent, you have the total system sales off because of the smoky bonds.
Speaker Change: and that's really also at the operating margin level as well where there's just less restaurant level margin that's Lucky Bones.
Speaker Change: and you've got some source temporarily closed while they're being converted. So, both of those things. Now, when we talk about the overall smoky bones portfolio, you know, we still think about half the locations.
Speaker Change: We'll get converted into Twin Peaks as quickly as we can and within those 30 locations because there's 60 in total about 10 of them will be corporate we've converted to already we have another one under construction now a couple more to do over the next 12 months.
Speaker Change: Then there's about 10 that are clearly franchise markets. And then there's 10 that are in between. They'll either be a franchise or they'll be corporate. We'll do one or the other.
And then there's a bunch that don't qualify as...
Speaker Change: Conversion either because there's a twin peak, you know, too close already or there's some landlord restriction where it doesn't make it feasible. So in those cases that remaining 30 about 10 of those restaurants will close, at least as they're running out, they're old and there's nothing to do with them, and then there's about 20 that will stay smoky bones in.
Speaker Change: and continue on. So a couple of those we've closed because they're not going to be converted and then we've got the ones that are closed that are in the middle of the conversion process. That's why the total sales decline that looks a little bit more severe.
Speaker Change: We took all the smoky bones and recorded all the sales for the last 18 months, but now we're closing some of the ones that are destined to be closed anyway, which is again about nine of them I think.
Speaker Change: Okay, great, thanks for that. And I don't know if you can, you know, kind of give us ballpark here, you know, if you were to re-franchise all of his oldies, what kind of value does that bring in to the parent FAT Brands?
Speaker Change: Well, I think so, you know, the proceeds from any refranchising will go to pay down debt, the dollar value that we achieve for that.
Speaker Change: is probably somewhere in a four to six times multiple range for those stores and you're going to see something hopefully in the $25 million range and we'll see how that goes in this environment.
Speaker Change: But the other point to that is we'll continue to get a royalty instead of profits from the stores and it'll save
Speaker Change: You'll save two and a half to three and a half million of overhead.
Okay.
And then, Pickin'
Part of me, you know, one of the things that...
that, you know, we'd hope to see here.
Speaker Change: I think that we're going to see the end to a lot of litigation expense here in Q2, all of it coming to an end and look forward to talking more about that when we can.
Okay.
That would be great.
Speaker Change: and it just lasts for me. I don't know if he can provide us any kind of, you know, I know.
Speaker Change: The same store sales were down in the first quarter but so far here in the second quarter I know if you could talk about what traffic patterns are looking like or average checks are looking like across the
The Franchises [inaudible]
Yeah, I mean, you're seeing, I mean, you are seeing...
Speaker Change: differences by segment in terms of like burgers versus wings versus snacks. We're seeing very modest decline in sales and traffic for the cookies and ice cream and pretzels and stuff like that.
You've seen it in a more standard industry level declines for burgers.
Speaker Change: and some of the wing's brands. But you're also seeing pizza do pretty well. So we're pleased to see how well pizzas held up and continuing. It's for most of the time either flat or slightly positive or slightly negative, but it's done really well.
as well as the Stacks.
Speaker Change: Great thanks, Alton Stump. Thank you, Joseph.
Speaker Change: The next question comes from the line of Roger Lipton with Lipton Financial Services. Please proceed. Yes, I, Andy, I can. Thanks for taking my question. Most of the items I wanted to...
That's John.
All the samples of my other phone.
Speaker Change: Frank, we have been referred to already, but I wanted to ask you, can you give us an estimate of the year-to-year, Smoky Bones?
Speaker Change: negative impact in the quarter, trying to reconcile the decline in the year-to-year adjusted EBITDA. My suspicion is that smoky bones did more poorly this year than last. Is there any estimate you can provide?
Speaker Change: Yeah, I mean, it's a couple of nine dollars.
Speaker Change: You know, a couple of million dollars a quarter, it's a lot.
Speaker Change: All right. Okay. I mean, you have depreciation, you have actual operating and decline so you have both those things to run through, whichever you're looking at. And so the faster we can convert, the stores we're going to convert, the better, and we're very focused on that.
Speaker Change: Right, no doubt. When you have it, just in the overall scheme of things, when you have
Speaker Change: Remaining as high as they are, and you have construction costs up.
as much as they are, and then you have...
Speaker Change: Teriffs that you're importing equipment that might be affected by tariffs and what have you. You just end up having development slow down a little bit. It's not going away, but it slows down a little bit.
Speaker Change: You know, and then some regions, you've got, you know, construction where it's hard to find the right contractor that's available because he's busy on something else. You know, just all that stuff's going on, I think it's making...
Speaker Change: New sort of development just go a little bit slower than we would like but it's understandable and it's not it's not that it's not going to happen it's just taking a little longer
Speaker Change: Right, understood. And do you have any idea how long it's going to take to find a new full-time CEO to take the place with Joe Hummel? How is that going?
Speaker Change: The executive search is going very well. We have a number of excellent candidates and I don't think it will take very long.
Okay. And lastly, certainly within this quarter, certainly within this quarter.
Speaker Change: Okay, that'll be productive. In the supplemental material you'd talk about when you show us at one of your priorities.
Speaker Change: 10 million dollars of additional e-bid of justice e-bid of from new stores and 5 million from the factory. What kind of time frame are you thinking about in terms of that incremental 15 million that was just a e-bid of a year or two years? You don't specify the timetable.
Speaker Change: Well, I think over the next couple of years it's more than reasonable for both.
Speaker Change: of the things. Yeah, because we have so many new stores opening and we have this incremental growth of the factory, you know, over the next 24 months for sure, that'll show up.
Okay. All right. That's it. It's helpful. Thanks very much. Thank you.
Unidentified Moderator: Freddie, this concludes the question and answer session, but I would like to turn a call back over to Andy Wiederhorn for closing remarks.
Andy Wiederhorn: Great, thank you everyone. I'd love to direct your attention to the Twin Peaks earnings call that is going on as we speak to start a couple minutes ago. And that contact information is in the earnings release for Twin Peaks.
I'll bring you this concludes today's call.
Thank you.