Yahoo Finance FAT Brands (FAT) Widens Reach, Opens New Fazoli's in Glendale
FAT Brands Inc. FAT continues an impressive growth trajectory as Fazoli's, one of its most popular quick-service Italian chains, opens its third location in the Phoenix area. The new Glendale restaurant, located at 5825 W. Peoria Ave., showcases a refreshed brand look and offers the chain's signature unlimited breadsticks and beloved pasta dishes.
This expansion is part of FAT Brands' broader strategy to strengthen its presence in key markets. Gregg Nettleton, president of Fazoli’s, expressed pride in the rapid growth, highlighting that three new Fazoli’s have opened in Maricopa County within a year. The local franchisee, Kind Hospitality, also operates Phoenix's Native Grill & Wings, showcasing its deep understanding of the local market and community needs.
The new Glendale location’s launch is a testament to FAT Brands' commitment to expanding its footprint and delivering quality dining experiences. This strategic expansion is expected to drive revenue growth and increase brand visibility in the competitive quick-service restaurant market.
The opening of Fazoli’s in Glendale marks another milestone in FAT’s expansion efforts. With a solid growth strategy and a strong commitment to community engagement, FAT Brands is well-positioned for continued success and long-term profitability. Investors can look forward to more growth initiatives and community-focused endeavors from FAT Brands in the near future.
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Unit Expansion Plans Bode Well
FAT Brands’ focus on unit expansion through new openings and the acquisition of additional brands and restaurants, along with the development of existing brands, has contributed to its growth trend. As of Mar 31, 2024, the company’s services were available in approximately 2,300 locations, which included opened and under-construction units, among which about 92% were franchised. The locations are spread across more than 40 countries globally and 49 U.S. states.
In fiscal first quarter of 2024, FAT Brands opened 16 new locations. The company also finalized a strategic development deal for 40 co-branded Round Table Pizza and Fatburger locations as FAT continues to witness heightened interest from its franchise partners. FAT Brands signed more than 150 development deals, which increased its development pipeline to more than 1,200 locations.
Shares of this Zacks Rank #4 (Sell) stock have lost 18% in the past six months compared with the Zacks Retail - Restaurants industry’s 4.3% decline.
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