FAT Brands Inc. FAT is gearing up to unveil the curtains on its fiscal fourth-quarter 2023 results post-market closure on March 7.
The last quarter witnessed the company outshining the Zacks Consensus Estimate for both earnings and revenues by 7% and 2.2%, respectively.
Anticipated Q4 Figures
Going by estimates, the consensus for the bottom line in the fiscal fourth quarter stands at a loss of $1.55 per share. In comparison, a loss of $2.60 per share was reported in the same quarter last year.
Performance Prospects and Factors
The projected robust performance for FAT Brands’ fiscal fourth-quarter top line can be attributed to the upsurge in company-owned restaurant revenues, system-wide sales, and elevated franchise fees. The stellar growth in new restaurant inaugurations across the varied brand portfolio and strategic acquisition endeavors are anticipated to bolster overall performance in the impending quarter.
The company’s focus on organic expansion strategies and proactive engagement in franchise development agreements, supported by a robust brand management framework, augurs well. With a keen eye on leveraging the high demand for its brands, FAT Brands foresees the launch of around 54 new eateries in the fourth quarter of fiscal 2023.
Nevertheless, the bottom line might face some headwinds in the upcoming quarter due to escalating costs.
Insights from the Zacks Model
The Zacks model raises doubts about a prospective earnings beat for FAT Brands this period. The absence of the requisite amalgamation of a positive Earnings ESP and a Zacks Rank standing at #1 (Strong Buy), 2 (Buy), or 3 (Hold) might diminish the chances of an earnings beat this time around.
Earnings ESP: FAT Brands maintains an Earnings ESP of 0.00%. To explore pre-earning opportunities, check out our Earnings ESP Filter.
Zacks Rank: Currently holding a Zacks Rank of 3.
Stocks Positioned for Earnings Triumph
Among companies in the Retail-Wholesale sector identified by our model for potential earnings victory in the upcoming quarter include:
The Gap, Inc. GPS boasting an Earnings ESP of +54.71% and a Zacks Rank of 1. Explore today’s Zacks #1 Rank stocks list here.
GPS is expected to record a 126.7% surge in earnings for the impending quarter. The company surpassed earnings expectations thrice in the past four quarters with an average positive surprise of 137.9%.
DICK’S Sporting Goods, Inc. DKS holding an Earnings ESP of +2.03% and a Zacks Rank of 2.
DKS is set to witness a 13.7% earnings uptick in the upcoming quarter. With three out of the last four quarters reflecting earnings beats, the average surprise stands at 0.04%.
Burlington Stores, Inc. BURL showcasing an Earnings ESP of +1.83% coupled with a Zacks Rank of 3.
BURL exceeded earnings estimates in two of the recent four quarters, with the average surprise at 9.4%. A 10.5% year-over-year earnings growth is projected for the impending quarter.
Stay updated on forthcoming earnings declarations with the Zacks Earnings Calendar.
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