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FAT Brands (FAT) Gears Up for Q3 Earnings: What's in Store?
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FAT Brands Inc. (FAT - Free Report) is scheduled to report third-quarter 2023 results on Oct 19, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 66.2%.
Q3 Estimates
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of $1.71 per share. In the year-ago quarter, the company had reported a loss of 98 cents per share. The consensus mark for revenues is pegged at $107 million, suggesting a 3.9% growth from the prior-year quarter’s levels.
FAT Brands' third-quarter results are likely to benefit from strong company-owned restaurant revenues and System-wide sales growth. Also, its emphasis on organic growth strategy and proactive signing of franchise development agreements bodes well.
Leveraging the high demand for its brands in the market, FAT anticipates opening more than 35 units in the third-quarter 2023.
However, inflationary pressures related to commodities and wages will likely hurt the company’s bottom line in the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for FAT Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: FAT Brands has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these have the right combination of elements to beat on earnings this season.
McDonald's Corporation (MCD - Free Report) currently has an Earnings ESP of +1.11% and a Zacks Rank #3.
MCD’s earnings beat the consensus mark in all of the trailing four quarters, the average beat being 9.5%. Earnings per share for the to-be-reported quarter are expected to increase 11.6% year over year.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3.
SBUX’s earnings beat estimates in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 7.3%, on average. Earnings per share for the to-be-reported quarter are expected to increase 18.5% year over year.
Chipotle Mexican Grill, Inc. (CMG - Free Report) currently has an Earnings ESP of +0.31% and a Zacks Rank #3.
CMG’s earnings beat the consensus estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.8%, on average. Earnings per share for the to-be-reported quarter are expected to rise 10.1% year over year.
Image: Bigstock
FAT Brands (FAT) Gears Up for Q3 Earnings: What's in Store?
FAT Brands Inc. (FAT - Free Report) is scheduled to report third-quarter 2023 results on Oct 19, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 66.2%.
Q3 Estimates
The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of $1.71 per share. In the year-ago quarter, the company had reported a loss of 98 cents per share. The consensus mark for revenues is pegged at $107 million, suggesting a 3.9% growth from the prior-year quarter’s levels.
FAT Brands Inc. Price and EPS Surprise
FAT Brands Inc. price-eps-surprise | FAT Brands Inc. Quote
Factors to Note
FAT Brands' third-quarter results are likely to benefit from strong company-owned restaurant revenues and System-wide sales growth. Also, its emphasis on organic growth strategy and proactive signing of franchise development agreements bodes well.
Leveraging the high demand for its brands in the market, FAT anticipates opening more than 35 units in the third-quarter 2023.
However, inflationary pressures related to commodities and wages will likely hurt the company’s bottom line in the quarter to be reported.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for FAT Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: FAT Brands has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FAT Brands carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these have the right combination of elements to beat on earnings this season.
McDonald's Corporation (MCD - Free Report) currently has an Earnings ESP of +1.11% and a Zacks Rank #3.
MCD’s earnings beat the consensus mark in all of the trailing four quarters, the average beat being 9.5%. Earnings per share for the to-be-reported quarter are expected to increase 11.6% year over year.
Starbucks Corporation (SBUX - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3.
SBUX’s earnings beat estimates in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 7.3%, on average. Earnings per share for the to-be-reported quarter are expected to increase 18.5% year over year.
Chipotle Mexican Grill, Inc. (CMG - Free Report) currently has an Earnings ESP of +0.31% and a Zacks Rank #3.
CMG’s earnings beat the consensus estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.8%, on average. Earnings per share for the to-be-reported quarter are expected to rise 10.1% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.