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FAT Brands (FAT) to Open 10 New Co-branded Locations across Texas
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FAT Brands Inc. (FAT - Free Report) continues to expand its co-branded portfolio. Recently, the company unveiled two new development deals to open 10 new co-branded Great American Cookies and Marble Slab Creamery locations across Texas. These establishments are slated to open their doors over the next five years.
The company's subsidiary brands, Great American Cookies and Marble Slab Creamery, have emerged as popular sweet destinations in Texas. FAT anticipates robust growth for these co-branded brands, providing a convenient one-stop shop for Cookie Cakes, homemade ice cream, and more. FAT remains optimistic in this regard and anticipates expanding alongside Texas' growth.
Focus on Expansion
Shares of FAT have increased 18.5% this year compared with the industry’s 6.8% rise. The company’s emphasis on its three strategic pillars, consisting of acquisitions, organic growth, and productivity growth for its Georgia-based manufacturing facility, has been driving this performance. The leading global franchising company strategically acquires, markets and develops fast casual, quick-service, casual dining and polished casual dining concepts worldwide. The company owns 18 restaurant brands and franchises. It owns more than 2,300 units globally.
Image Source: Zacks Investment Research
Year to date, the company has opened 107 new units, including 30 units that opened in the third quarter. For 2023, FAT anticipates opening more than 150 units. It also signed franchise development deals for more than 200 new locations, bringing its pipeline to over 1,100 signed agreements for new units over the next few years. This anticipated organic growth is estimated to contribute approximately $60 million in incremental adjusted EBITDA.
Zacks Rank and Other Key Picks
FAT Brands currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Brinker International, Inc. (EAT - Free Report) currently carries a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 223.6%, on average. The stock has gained 7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EAT’s 2024 sales and earnings per share (EPS) suggests a rise of 5.1% and 26.2%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. (ANF - Free Report) flaunts a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have surged 221.3% in the past year.
The Zacks Consensus Estimate for ANF’s 2023 sales and EPS suggests increases of 12.3% and 2,108%, respectively, from the year-ago period’s levels.
Beacon Roofing Supply, Inc. (BECN - Free Report) sports a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 11.1%, on average. Shares of BECN have increased 42.5% in the past year.
The Zacks Consensus Estimate for BECN’s 2023 sales and EPS indicates a 7.2% and a 7.3% growth, respectively, from the year-ago period’s levels.
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FAT Brands (FAT) to Open 10 New Co-branded Locations across Texas
FAT Brands Inc. (FAT - Free Report) continues to expand its co-branded portfolio. Recently, the company unveiled two new development deals to open 10 new co-branded Great American Cookies and Marble Slab Creamery locations across Texas. These establishments are slated to open their doors over the next five years.
The company's subsidiary brands, Great American Cookies and Marble Slab Creamery, have emerged as popular sweet destinations in Texas. FAT anticipates robust growth for these co-branded brands, providing a convenient one-stop shop for Cookie Cakes, homemade ice cream, and more. FAT remains optimistic in this regard and anticipates expanding alongside Texas' growth.
Focus on Expansion
Shares of FAT have increased 18.5% this year compared with the industry’s 6.8% rise. The company’s emphasis on its three strategic pillars, consisting of acquisitions, organic growth, and productivity growth for its Georgia-based manufacturing facility, has been driving this performance. The leading global franchising company strategically acquires, markets and develops fast casual, quick-service, casual dining and polished casual dining concepts worldwide. The company owns 18 restaurant brands and franchises. It owns more than 2,300 units globally.
Image Source: Zacks Investment Research
Year to date, the company has opened 107 new units, including 30 units that opened in the third quarter. For 2023, FAT anticipates opening more than 150 units. It also signed franchise development deals for more than 200 new locations, bringing its pipeline to over 1,100 signed agreements for new units over the next few years. This anticipated organic growth is estimated to contribute approximately $60 million in incremental adjusted EBITDA.
Zacks Rank and Other Key Picks
FAT Brands currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Brinker International, Inc. (EAT - Free Report) currently carries a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 223.6%, on average. The stock has gained 7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EAT’s 2024 sales and earnings per share (EPS) suggests a rise of 5.1% and 26.2%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. (ANF - Free Report) flaunts a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have surged 221.3% in the past year.
The Zacks Consensus Estimate for ANF’s 2023 sales and EPS suggests increases of 12.3% and 2,108%, respectively, from the year-ago period’s levels.
Beacon Roofing Supply, Inc. (BECN - Free Report) sports a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 11.1%, on average. Shares of BECN have increased 42.5% in the past year.
The Zacks Consensus Estimate for BECN’s 2023 sales and EPS indicates a 7.2% and a 7.3% growth, respectively, from the year-ago period’s levels.