Looking back on traditional fast food stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Yum! Brands (NYSE: YUM) 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.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.2% since the latest earnings results.
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 was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and same-store sales in line with analysts’ estimates.
The stock is up 8.3% since reporting and currently trades at $142.15.
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 delivered the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 9.7% since reporting. It currently trades at $58.45.
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 55.8% since the results and currently trades at $4.04.
Read our full analysis of Krispy Kreme’s results here.
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 $530.8 million, down 7.1% year on year. This print surpassed analysts’ expectations by 2.7%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
The stock is down 32.5% since reporting and currently trades at $31.20.
Read our full, actionable report on Papa John's here, it’s free.
Portillo's (NASDAQ: PTLO)
Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ: PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.
Portillo's reported revenues of $184.6 million, down 1.7% year on year. This result was in line with analysts’ expectations. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is down 11% since reporting and currently trades at $12.09.
Read our full, actionable report on Portillo's here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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