Spotting Winners: Restaurant Brands (NYSE:QSR) And Traditional Fast Food Stocks In Q3
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Restaurant Brands (NYSE:QSR), and the best and worst performers in the traditional fast food group.
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% Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but traditional fast food stocks held their ground better than others, with the share prices up 7% on average since the previous earnings results.
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 13.1% since the results and currently trades at $78.19.
Is now the time to buy Restaurant Brands? 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 scored the biggest analyst estimates beat among its peers. 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.
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 $2.91 billion, up 8.5% year on year, falling short of analyst expectations by 5.7%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
Yum China had the weakest performance against analyst estimates among its peers. The stock is down 27.5% since the results and currently trades at $38.09.
Read our full, actionable report on Yum China here, it's free.
Jack in the Box (NASDAQ:JACK)
Delighting customers since its inception in 1951, Jack in the Box (NASDAQ:JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.
Jack in the Box reported revenues of $372.5 million, down 7.5% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' earnings estimates.
Jack in the Box had the slowest revenue growth among its peers. The stock is up 11.5% since the results and currently trades at $76.75.
Read our full, actionable report on Jack in the Box here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
The author has no position in any of the stocks mentioned
