Q3 Earnings Highs And Lows: McDonald's (NYSE:MCD) Vs The Rest Of The Traditional Fast Food Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how the traditional fast food stocks have fared in Q3, starting with McDonald's (NYSE:MCD).
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 15 traditional fast food stocks we track reported a decent Q3; on average, revenues missed analyst consensus estimates by 0.6% Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but traditional fast food stocks held their ground better than others, with the share prices up 8.7% on average since the previous earnings results.
McDonald's (NYSE:MCD)
Arguably one of the most iconic brands in the world, McDonald’s (NYSE:MCD) is a fast-food behemoth known for its convenience, value, and wide assortment of menu items.
McDonald's reported revenues of $6.69 billion, up 14% year on year, topping analyst expectations by 2.2%. It was an impressive quarter for the company, with a solid beat of analysts' revenue estimates.
"With global Systemwide sales growth of 11%, our third quarter results reflect our position of strength as the industry leader," said McDonald's President and Chief Executive Officer, Chris Kempczinski.
The stock is up 14.2% since the results and currently trades at $292.14.
Is now the time to buy McDonald's? Access our full analysis of the earnings results here, it's free.
Best Q3: Arcos Dorados (NYSE:ARCO)
Translating to “Golden Arches” in Spanish, Arcos Dorados (NYSE:ARCO) is the master franchisee of the McDonald's brand in Latin America and the Caribbean, responsible for its operations and growth in over 20 countries.
Arcos Dorados reported revenues of $1.13 billion, up 22.1% year on year, outperforming analyst expectations by 3.4%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.
Arcos Dorados pulled off the biggest analyst estimates beat among its peers. The stock is up 22.4% since the results and currently trades at $12.9.
Is now the time to buy Arcos Dorados? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Krispy Kreme (NASDAQ:DNUT)
Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ:DNUT) is one of the most beloved and well-known fast-food chains in the world.
Krispy Kreme reported revenues of $407.4 million, up 7.9% year on year, falling short of analyst expectations by 1.6%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Krispy Kreme had the weakest full-year guidance update in the group. The stock is up 0.1% since the results and currently trades at $13.46.
Read our full analysis of Krispy Kreme's results here.
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 $264.5 million, up 33.2% year on year, surpassing analyst expectations by 2.4%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings and revenue estimates.
Dutch Bros pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 4.9% since the results and currently trades at $27.87.
Read our full, actionable report on Dutch Bros here, it's free.
Restaurant Brands (NYSE:QSR)
Formed through a strategic merger, Restaurant Brands International (NYSE:QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.
Restaurant Brands reported revenues of $1.84 billion, up 6.4% year on year, falling short of analyst expectations by 1.7%.It was a decent quarter for the company, with an impressive beat of analysts' EPS estimates.
The stock is up 11.2% since the results and currently trades at $76.88.
Read our full, actionable report on Restaurant Brands here, it's free.
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The author has no position in any of the stocks mentioned
