FAT Brands Unveils New Co-Branded Online Ordering System
FAT Brands Inc. FAT introduced a new co-branded online ordering system for Great American Cookies and Marble Slab Creamery, featuring an innovative 3D cookie cake builder. This system is developed in partnership with Rapturous, the digital restaurant transformation arm of 3 Owl and Olo Inc. OLO — a leading technology provider for restaurants.
The new user experience integrates both brands into a unified experience, improving the interaction for customers at co-branded and individual stores. This platform sets a new industry standard with features like Olo Pay’s Mobile Wallet and a 3D Cookie Cake Builder, which have already led to increased sales. The co-branded storefront also offers in-store use. FAT Brands plans to pilot a self-service kiosk for the Cookie Cake Builder in select test locations in early 2025.
The new 3D Cookie Cake Builder enhances the digital experience for customers. This tool allows users to design a Cookie Cake in real time, offering 3D visuals as they choose icing colors, cake flavors and personalized messages. This innovation sets Great American Cookies apart from other digital cake builders.
FAT Brands significantly enhanced customer experience through this collaboration. Leveraging Olo’s technology, the company created a highly-scalable digital platform. The successful execution and immediate positive impact of this initiative have been advantageous for FAT.
FAT's Focus on Co-Branding Strategy Bodes Well
The company continues to prioritize co-branding as a key strategy. It is seeing robust new franchisee activity and growing interest from existing partners to develop additional brands and explore new co-branding opportunities.
Since the introduction of its first Fat burger and Round Table Pizza co-branded concept in 2023, more than 50 new locations are in development. During second-quarter 2024, FAT announced its expansion into Utah, with plans to open 12 co-branded Fat burger and Round Table Pizza franchised restaurants over the next six years. The first unit is scheduled to open in 2025.
FAT's co-branded model of Great American Cookies and Marble Slab Creamery continues to perform well. Over the past few months, FAT has solidified its presence in Georgia, now operating over 50 locations. During the second quarter earnings call, the company stated that it has opened four new locations in Georgia, including Acworth, Bethlehem, Marietta and Snowville. Also, a stand-alone Great American Cookies location was opened in Columbus, Georgia. The company continues to focus on strategic value offerings to enhance customer engagement and drive traffic across its brands.
FAT’s YTD Price Performance
Image Source: Zacks Investment Research
Shares of this American multi-brand restaurant have declined 10.7% in the past three months against the Zacks Retail - Restaurants industry’s 5.6% rise. Although the company has underperformed the industry in the said period, it is likely to benefit from its strategy of expanding existing brands, acquiring profitable new ones and executing strategic divestments. Also, the emphasis on co-branding opportunities bodes well for FAT’s growth prospects.
FAT’s Zacks Rank & Key Picks
FAT Brands currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
Abercrombie & Fitch Co. ANF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ANF has a trailing four-quarter earnings surprise of 28%, on average. The stock has surged 169.6% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) indicates growth of 13.1% and 63.4%, respectively, from the year-ago period’s levels.
Boot Barn Holdings, Inc. BOOT currently sports a Zacks Rank of 1. BOOT has a trailing four-quarter earnings surprise of 7.1%, on average. The stock has gained 93% in the past year.
The consensus estimate for BOOT’s fiscal 2025 sales and EPS indicates growth of 11.6% and 10.7%, respectively, from the year-ago period’s levels.
Sprouts Farmers Market, Inc. SFM currently sports a Zacks Rank of 1. SFM has a trailing four-quarter earnings surprise of 12%, on average. The stock has surged 157% in the past year.
The Zacks Consensus Estimate for SFM’s 2024 sales and EPS indicates a rise of 9.6% and 18.7%, respectively, from the year-ago period’s levels.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
Sprouts Farmers Market, Inc. (SFM) : Free Stock Analysis Report
FAT Brands Inc. (FAT) : Free Stock Analysis Report
Olo Inc. (OLO) : Free Stock Analysis Report