As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at traditional fast food stocks, starting with Dutch Bros (NYSE: BROS).
Traditional fast-food restaurants are renowned for their speed and convenience, boasting menus filled with familiar and budget-friendly items. Their reputations for on-the-go consumption make them favored destinations for individuals and families needing a quick meal. This class of restaurants, however, is fighting the perception that their meals are unhealthy and made with inferior ingredients, a battle that's especially relevant today given the consumers increasing focus on health and wellness.
The 13 traditional fast food stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates.
Thankfully, share prices of the companies have been resilient as they are up 9% on average since the latest earnings results.
Best Q3: Dutch Bros (NYSE: BROS)
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Dutch Bros reported revenues of $423.6 million, up 25.2% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ revenue estimates.
Dutch Bros achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 10.3% since reporting and currently trades at $62.
Wendy's (NASDAQ: WEN)
Founded by Dave Thomas in 1969, Wendy’s (NASDAQ: WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.
Wendy's reported revenues of $549.5 million, down 3% year on year, outperforming analysts’ expectations by 3.1%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
Wendy's scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.2% since reporting. It currently trades at $8.37.
Is now the time to buy Wendy's? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: Papa John's (NASDAQ: PZZA)
Founded by the eclectic John “Papa John” Schnatter, Papa John’s (NASDAQ: PZZA) is a globally recognized pizza delivery and carryout chain known for “better ingredients” and “better pizza”.
Papa John's reported revenues of $508.2 million, flat year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a miss of analysts’ revenue estimates.
As expected, the stock is down 11.8% since the results and currently trades at $36.39.
Read our full analysis of Papa John’s results here.
Starbucks (NASDAQ: SBUX)
Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.
Starbucks reported revenues of $9.57 billion, up 5.5% year on year. This print topped analysts’ expectations by 2.6%. It was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ same-store sales estimates.
The stock is up 10.3% since reporting and currently trades at $92.83.
Read our full, actionable report on Starbucks here, it’s free.
Yum China (NYSE: YUMC)
One of China’s largest restaurant companies, Yum China (NYSE: YUMC) is an independent entity spun off from Yum! Brands in 2016.
Yum China reported revenues of $3.21 billion, up 4.4% year on year. This result was in line with analysts’ expectations. However, it was a mixed quarter as it failed to impress in some other areas of the business.
The stock is up 8.9% since reporting and currently trades at $47.88.
Read our full, actionable report on Yum China here, it’s free.
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