INVESTOR PRESENTATION SEPTEMBER 2018 1 LEGAL DISCLAIMER This - PowerPoint PPT Presentation

INVESTOR PRESENTATION SEPTEMBER 2018 1

LEGAL DISCLAIMER This presentation may include ''forward-looking statements.'' To the extent that the information presented in this presentation discusses financial projections, information, or expectations about FAT Brands Inc.’s business plans, results of operations, products or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' Although FAT Brands Inc. believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in the offering statement filed with the SEC, which can be found here: https://www.sec.gov/Archives/edgar/data/1705012/000149315217011171/partiiandiii.htm. Forward-looking statements speak only as of the date of the document in which they are contained, and FAT Brands Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. 2

CORPORATE OVERVIEW  NASDAQ: FAT  Market Cap: $98.3 million as of 9/6/18  11,432,532 shares outstanding  Completed IPO in October 2017, raised $24 million in gross proceeds  Raised $10 million in Preferred Equity in June 2018 and $16 million in Senior Debt July 2018, bringing total capital raised LTM to $50 million  Expects to pay $0.48 / share dividend in 2018 1  Covered by RF Lafferty (1) Amount of dividend may be raised or lowered in the future without advance notice 3

INVESTMENT HIGHLIGHTS  Highly Scalable Asset-Light Business Model  Ability to Cross-Sell Concepts Globally  Strong Brands with Loyal Followings  Massive Consolidation Opportunity  Proven Management Team 4

WHY FAT BRANDS? Diverse Global Franchisee Asset Light & Network Strong Brands Scalable with Loyal Business Following Model Proven Ability to Management Cross-Sell Team Concepts History of Profitability & SSS Growth 5

COMPANY HISTORY 1947 2003 2007-2008 2011 2017 Fatburger founded by Lovie Fatburger purchased by Fog 2007: Fatburger opens in Fatburger completes Re-organized into FAT Brands Yancey and the original Cutter Capital Group China refranchising of most Inc. Fatburger stand is opened on corporate stores 2008: Fatburger opens in Completed IPO, began trading Western Avenue in Dubai Buffalo’s Cafe acquired on NASDAQ under ticker Downtown Los Angeles “FAT” Company returns to profitability Acquired Ponderosa & Bonanza Steakhouses 1947 1947 2000 2000 2003 2003 2006 2006 2009 2009 2011 2011 2013 2013 2015 2015 2017 2017 2018 2018 2000 2006 2009 2012 - 2015 2018 2012: 1 st co-branded Fatburger purchased by Management restructured & Fatburger begins conversion Acquired Hurricane Grill and Magic Johnson & group of international growth begins to a pure franchise model Fatburger & Buffalo’s location Wings celebrity investors (discontinues development of opens in LA Fatburger opens in Canada Completed $16M debt and new corporate stores) 2015: 50 th co-branded $10M preferred equity raise location opens Franchise system grows to include ~300 units w/ 300+ locations under contract 6

FATBURGER: THE ORIGINAL BETTER BURGER Founded in 1947 in Los Angeles, CA, Fatburger has become a global leader in the better burger category  Acquired by Fog Cutter Capital Group (FCCG) in 2003, has grown from 40 locations to 151 locations across 5 states & 16 countries as of 7/1/18  For 70+ years has maintained reputation of providing fresh, authentic, tasty meals supported by steadfast commitment to preparing fresh, made-to-order, high-quality food the same way Fatburger’s founder Lovie Yancey did in 1947  Offerings are well-priced, falling between QSR and casual dining experiences System-wide sales of approximately $113.6 million in 2017 Same-store sales (SSS) 1 in core U.S. market increased 7.4% in 2017   20 new store openings in 2017, 23 expected new store openings in 2018 SSS 1 in core U.S. market increased 9.5% and system-wide SSS 1 increased  7.6% for the 26 weeks ended July 1, 2018 (1) Inclusive of co-branded Fatburger / Buffalo’s Express locations. 7

FATBURGER: A PROVEN BRAND Iconic Iconic Strong Celebrity Following Strong Celebrity Following from LA Roots from LA Roots Loyal Fan Base Loyal Fan Base 1,000,000+ Social Media 1,000,000+ Social Media Followers 1 Followers 1 (1) Figures include all corporate and franchise accounts. 8

BUFFALO’S CAFE Founded in 1985 in Roswell, GA, Buffalo’s Cafe is a casual dining concept, known for its chicken wings and distinctive sauces, that was acquired by FCCG in 2011  As of July 1, 2018, 16 Buffalo’s Cafe’s located across 2 countries  Buffalo’s Cafe menu offers fresh-never-frozen chicken wings, 13 homemade sauces and classic American dinner platters including burgers, sandwiches, wraps, salads, ribs, sides and desserts System-wide sales of approximately $24.9 million in 2017 SSS 1 increased 1.4% in 2017 and increased 5.0% for the 26 weeks ended July  1, 2018  2 new store openings planned in 2018 (1) Adjusted to exclude two restaurants that were subject to extraordinary adverse operating conditions related to changes in the alcohol laws in Canyon, TX and political sanctions affecting the supply chain and the related local economy in Qatar. 9

BUFFALO’S EXPRESS Buffalo’s Express (developed by FCCG) is a fast-casual, smaller footprint variant of Buffalo’s Cafe that is co-branded with Fatburger locations  As of July 1, 2018, 79 co-branded Buffalo’s Express located across 5 states and 16 countries  Buffalo’s Express menu emphasizes fresh-never-frozen chicken wings, sauces and salads  Cross-sell into existing Fatburger franchisees  Co-branded locations have average AUV increase of ~15-30% (as compared to stand-alone Fatburgers) System-wide SSS 1 increased 20.4% for the 26 weeks ended July 1, 2018  Success of co-branded Fatburger & Buffalo’s Express locations Success of co-branded Fatburger & Buffalo’s Express locations demonstrates scalability of FAT model! demonstrates scalability of FAT model! (1) Inclusive of co-branded Fatburger / Buffalo’s Express locations. 10

PONDEROSA & BONANZA STEAKHOUSES Ponderosa Steakhouse & Bonanza Steakhouse, established in 1965 and 1963 respectively, are leading American family steakhouse brands  As of 7/1/2018, 107 Ponderosa & Bonanza restaurants operating in 17 states in the U.S., as well as in Puerto Rico, the U.A.E., Egypt, Qatar and Taiwan.  The Ponderosa & Bonanza were acquired in October 2017 with proceeds from the IPO  The plan is to scale the Ponderosa and Bonanza brands internationally via a smaller footprint, fast casual model (similar to the co-branded Buffalo’s Express) For the 26 weeks ended July 1, 2018, system-wide SSSfor Ponderosa and Bonanza increased 0.9%  In 2017 Ponderosa had system-wide gross sales of ~$145 million, AUV of $1.4 million and an average check of $11.46 across its 97 locations 11

HURRICANE GRILL AND WINGS Hurricane is a casual dining concept founded in 1995 in Fort Pierce, FL, known for its chicken wings and wide variety of sauces that was acquired by FAT Brands in 2018  As of July 1, 2018, 58 Buffalo’s Cafe’s located across the East Coast and Midwest  In 2017, Hurricane introduced its fast casual concept, BTW, and already has 3 stores open System-wide sales of approximately $75.8 million in 2017  SSS decreased 0.4% in 2017  3 new store openings planned in 2018 12

HIGHLY SCALABLE ASSET-LIGHT BUSINESS MODEL  Model driven by franchise fees and ongoing royalties  Multiple brands create scale, efficiencies in franchise support services, and significant G&A leverage  Business model drives strong margins and significant free cash flow conversion, with limited requirements for capital expenditures EBITDA margin expanded from 50% in 2013 to 69% in 2017 1 EBITDA margin expanded from 50% in 2013 to 69% in 2017 1 (1) Represents Pro Forma EBITDA Margin for FAT Brands, including results for Ponderosa & Bonanza Steakhouses and Hurricane’s as if they were acquired 12 months ago. Adjusted for stabilized SG&A expenses, after synergies. 13