FAT Brands Inc. has made its West Coast debut with the opening of the first co-branded Johnny Rockets and Hurricane Wings restaurant in the Los Angeles area.
In a move that showcases their growing influence, FAT is making waves with their latest venture: a combination of mouthwatering burgers and delectable wings. Building on their triumph in Washington, D.C., the company is now expanding its reach to new heights.
The co-branded model of Johnny Rockets and Hurricane Grill & Wings, located at 1129 S. Fremont Avenue, Ste. E, Alhambra, Calif., showcases a strong synergy. Both brands have a loyal customer base and cater to families.
Pay Attention to Growth
A prominent franchising company has recently made strategic moves to acquire, promote, and expand various dining concepts across the globe, including fast casual, quick-service, casual dining, and polished casual dining. The company is the proud owner of 18 restaurant brands and franchises. With a global presence, it boasts an impressive portfolio of over 2,300 units.
Two new development deals were announced by the company on Nov 28, 2023. These deals will result in the opening of 10 new co-branded Great American Cookies and Marble Slab Creamery locations across Texas. Several establishments are set to open their doors in the next five years.
In the latest update, it has been reported that the company has recently expanded its operations by opening a total of 107 new units. Out of these, 30 units were opened specifically in the third quarter of this year. In 2023, FAT has plans to open over 150 units. In addition, the company has recently entered into franchise development agreements for over 200 upcoming locations. This brings their total pipeline to an impressive 1,100 signed agreements for new units in the coming years. An estimated $60 million in incremental adjusted EBITDA is expected to be contributed by this anticipated organic growth.
FAT’s shares have experienced a 7.2% decline over the past three months, while the industry as a whole has seen a rise of 11.6%. The company’s focus on its three strategic pillars, including acquisitions, organic growth, and productivity growth for its Georgia-based manufacturing facility, is expected to have a positive impact on its performance in the near future.
The Zacks Rank and Key Picks
FAT Brands is currently holding a Zacks Rank #3 (Hold). Here are some top-performing stocks from the Zacks Retail-Wholesale sector:
Abercrombie & Fitch Co. ANF is currently ranked as a Strong Buy by Zacks. With an average trailing four-quarter earnings surprise of 713%, this company has certainly exceeded expectations. ANF’s shares have experienced a remarkable surge of 245.9% over the past year. For a comprehensive list of today’s Zacks #1 Rank stocks, please refer to the link provided.
ANF’s projected sales for 2024 are estimated to increase by 15.1%, while earnings per share (EPS) are expected to skyrocket by a staggering 2,320% compared to the previous year.
Arcos Dorados Holdings Inc. ARCO currently holds a Zacks Rank #1. With an average trailing four-quarter earnings surprise of 28.3%, it’s clear that this company has been exceeding expectations. ARCO’s shares have experienced a significant surge of 35.7% over the course of the past year. ARCO’s projected sales and EPS for 2024 show a promising growth of 10.6% and 15.5% compared to the previous year.
Brinker International, Inc. currently holds a Zacks Rank #2 (Buy). The average trailing four-quarter earnings surprise stands at an impressive 223.6%. In the past year, the stock has experienced a gain of 1.7%.
According to the Zacks Consensus Estimate, EAT’s sales and EPS for 2024 are expected to increase by 5% and 26.2%, respectively, compared to the previous year.
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