Back to top

Image: Bigstock

Here's What to Expect From FAT Brands' (FAT) Q4 Earnings

Read MoreHide Full Article

FAT Brands Inc. (FAT - Free Report) is scheduled to report fiscal fourth-quarter 2023 results on Mar 7, after market close.

In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 7% and 2.2%, respectively.

Q4 Estimates

The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at a loss of $1.55 per share. In the year-ago quarter, the company had reported a loss of $2.60 per share.

FAT Brands Inc. Price and EPS Surprise

 

FAT Brands Inc. Price and EPS Surprise

FAT Brands Inc. price-eps-surprise | FAT Brands Inc. Quote

 

The consensus mark for revenues is pegged at $150 million, suggesting 44.5% growth from the year-ago quarter’s levels.

Factors to Note

FAT Brands' fiscal fourth-quarter top line is likely to have benefited from robust company-owned restaurant revenues, system-wide sales growth and increased franchise fees. This and growth in new restaurant openings across the company’s diversified brand portfolio as well as strategic buyout initiatives are likely to have aided the company’s performance in the to-be-reported quarter.

The emphasis on organic growth strategy and proactive signing of franchise development agreements on the back of a strong brand management platform bodes well. Leveraging the high demand for its brands in the market, FAT Brands expects to open approximately 54 new restaurants in the fiscal fourth quarter of 2023.

Meanwhile, the company’s bottom line is likely to have been affected in the to-be-reported quarter by high costs and expenses.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for FAT Brands this time around. The company does not have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat.

Earnings ESP: FAT Brands has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: FAT currently carries a Zacks Rank of 3.

Stocks Poised to Beat Earnings

Here are some companies in the Zacks Retail-Wholesale sector, which according to our model, have the right combination of elements to post an earnings beat in the quarter to be reported.

The Gap, Inc. (GPS - Free Report) currently has an Earnings ESP of +54.71% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

GPS’ earnings for the to-be-reported quarter are expected to surge 126.7%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 137.9%.

DICK'S Sporting Goods, Inc. (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2.

DKS’ earnings for the to-be-reported quarter are expected to increase 13.7%. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the negative average surprise being 0.04%.

Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +1.83% and a Zacks Rank of 3.

BURL’s earnings topped the consensus mark in two of the last four quarters and missed on the remaining two occasions, the average surprise being 9.4%. Earnings for the to-be-reported quarter are expected to increase 10.5% year over year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in