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FAT Brands (FAT) Unveils First Co-Branded Los Angeles Location

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FAT Brands Inc. (FAT - Free Report) marks its West Coast debut with the opening of the first co-branded Johnny Rockets and Hurricane Wings restaurant in the Los Angeles area.

Following the success in Washington, D.C., FAT continues to expand its presence with this iconic burger and wing pairing.

Located at 1129 S. Fremont Avenue, Ste. E, Alhambra, Calif., the co-branded model of Johnny Rockets and Hurricane Grill & Wings exhibit great synergy, being family-oriented brands with dedicated followings.

Focus on Expansion

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.

On Nov 28, 2023, 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.

As of Sep 24, 2023, the company opened 107 new units, including 30 units that opened in the third quarter. For 2023, FAT anticipated opening more than 150 units. It also signed franchise development deals for more than 200 new locations, bringing its pipeline to more than 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 Investment Research
Image Source: Zacks Investment Research

Shares of FAT have declined 7.2% in the past three months against the industry’s 11.6% rise. The company’s emphasis on its three strategic pillars, consisting of acquisitions, organic growth and productivity growth for its Georgia-based manufacturing facility, is likely to drive its performance in the upcoming period.

Zacks Rank & Key Picks

FAT Brands currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Retail-Wholesale sector are:

Abercrombie & Fitch Co. (ANF - Free Report) currently flaunts a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 713%, on average. Shares of ANF have surged 245.9% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ANF’s 2024 sales and earnings per share (EPS) suggests increases of 15.1% and 2,320%, respectively, from the year-ago period’s levels.

Arcos Dorados Holdings Inc. (ARCO - Free Report) carries a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 28.3%, on average. Shares of ARCO have surged 35.7% in the past year.

The Zacks Consensus Estimate for ARCO’s 2024 sales and EPS indicates 10.6% and 15.5% growth, respectively, from the year-ago period’s levels.

Brinker International, Inc. (EAT - Free Report) currently sports a Zacks Rank #2 (Buy). It has a trailing four-quarter earnings surprise of 223.6%, on average. The stock has gained 1.7% in the past year.

The Zacks Consensus Estimate for EAT’s 2024 sales and EPS suggests a rise of 5% and 26.2%, respectively, from the year-ago period’s levels.

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