ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

Winners And Losers Of Q4: McDonald's (NYSE:MCD) Vs The Rest Of The Traditional Fast Food Stocks

MCD Cover Image

As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the traditional fast food industry, including McDonald's (NYSE: MCD) 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 14 traditional fast food stocks we track reported a satisfactory Q4. As a group, revenues were in line with analysts’ consensus estimates.

While some traditional fast food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.

McDonald's (NYSE: MCD)

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.

McDonald's reported revenues of $6.39 billion, flat year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ same-store sales estimates but a slight miss of analysts’ EPS estimates.

"Accelerating the Arches continues to be the right strategy as we focus on growing market share," said Chairman and CEO Chris Kempczinski.

McDonald's Total Revenue

The stock is up 6.8% since reporting and currently trades at $314.29.

Is now the time to buy McDonald's? Access our full analysis of the earnings results here, it’s free.

Best Q4: 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 $342.8 million, up 34.9% year on year, outperforming analysts’ expectations by 7.6%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Dutch Bros Total Revenue

Dutch Bros pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 5.8% since reporting. It currently trades at $68.50.

Is now the time to buy Dutch Bros? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: 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 $404 million, down 10.4% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.

Krispy Kreme delivered the slowest revenue growth and weakest full-year guidance update in the group. As expected, the stock is down 40.4% since the results and currently trades at $5.44.

Read our full analysis of Krispy Kreme’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 $9.40 billion, flat year on year. This result beat analysts’ expectations by 0.9%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ same-store sales estimates and a decent beat of analysts’ EBITDA estimates.

The stock is down 1.9% since reporting and currently trades at $98.49.

Read our full, actionable report on Starbucks here, it’s free.

Yum! Brands (NYSE: YUM)

Spun off as an independent company from PepsiCo, Yum! Brands (NYSE: YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill.

Yum! Brands reported revenues of $2.36 billion, up 16% year on year. This print met analysts’ expectations. It was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and same-store sales in line with analysts’ estimates.

The stock is up 21.6% since reporting and currently trades at $159.63.

Read our full, actionable report on Yum! Brands here, it’s free.


Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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.

Recent Quotes

View More
Symbol Price Change (%)
AMZN  233.22
+4.06 (1.77%)
AAPL  278.85
+1.30 (0.47%)
AMD  217.53
+3.29 (1.54%)
BAC  53.65
+0.66 (1.25%)
GOOG  320.12
-0.16 (-0.05%)
META  647.95
+14.34 (2.26%)
MSFT  492.01
+6.51 (1.34%)
NVDA  177.00
-3.26 (-1.81%)
ORCL  201.95
-3.01 (-1.47%)
TSLA  430.17
+3.59 (0.84%)
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the Privacy Policy and Terms Of Service.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.