Q3 Traditional Fast Food Earnings: Arcos Dorados (NYSE:ARCO) Impresses
As Q3 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the traditional fast food stocks, including Arcos Dorados (NYSE:ARCO) and its peers.
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% Inflation (despite slowing) has investors prioritizing near-term cash flows, but traditional fast food stocks held their ground better than others, with the share prices up 6.3% on average since the previous earnings results.
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, topping 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 of the whole group. The stock is up 14.5% since the results and currently trades at $12.07.
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 6.6% since the results and currently trades at $14.33.
Read our full analysis of Krispy Kreme's results here.
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, surpassing analyst expectations by 2.2%. It was a mixed quarter for the company, with a solid beat of analysts' revenue estimates. On the other hand, its gross margin sadly missed analysts' expectations.
The stock is up 14.6% since the results and currently trades at $293.3.
Read our full, actionable report on McDonald's here, it's free.
El Pollo Loco (NASDAQ:LOCO)
With a name that translates into ‘The Crazy Chicken’, El Pollo Loco (NASDAQ:LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico.
El Pollo Loco reported revenues of $120.4 million, flat year on year, falling short of analyst expectations by 0.4%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is down 2.2% since the results and currently trades at $8.53.
Read our full, actionable report on El Pollo Loco here, it's free.
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The author has no position in any of the stocks mentioned
