Wrapping up Q2 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, including Portillo's (NASDAQ: PTLO) 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 mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.

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 $188.5 million, up 3.6% year on year. This print fell short of analysts’ expectations by 3.9%. Overall, it was a slower quarter for the company with a slight miss of analysts’ same-store sales estimates.

“Our team operated well through a tough traffic environment in the second quarter, managing restaurant-level margins effectively and driving solid earnings,” said Michael Osanloo, President and Chief Executive Officer of Portillo’s.

Portillo's delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 24.8% since reporting and currently trades at $7.14.

Read our full report on Portillo's here, it’s free.

Best Q2: 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 $415.8 million, up 28% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.

Dutch Bros pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 28.5% since reporting. It currently trades at $74.25.

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

Weakest Q2: 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 $333 million, down 9.8% year on year, falling short of analysts’ expectations by 2.1%. It was a softer quarter as it posted a miss of analysts’ EBITDA estimates and a miss of analysts’ same-store sales estimates.

As expected, the stock is down 1.7% since the results and currently trades at $18.61.

Read our full analysis of Jack in the Box’s results here.

Domino's (NASDAQ: DPZ)

Founded by two brothers in Michigan, Domino’s (NYSE: DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery.

Domino's reported revenues of $1.15 billion, up 4.3% year on year. This number met analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ same-store sales estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 3.8% since reporting and currently trades at $449.23.

Read our full, actionable report on Domino's 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 $1.93 billion, up 9.6% year on year. This result was in line with analysts’ expectations. More broadly, it was a mixed quarter as it recorded a slight miss of analysts’ EBITDA estimates.

The stock is flat since reporting and currently trades at $145.91.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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