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Traditional Fast Food Stocks Q4 Teardown: Krispy Kreme (NASDAQ:DNUT) Vs The Rest

StockStory - Thu Apr 4, 3:45AM CDT

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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how the traditional fast food stocks have fared in Q4, starting with Krispy Kreme (NASDAQ:DNUT).

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 Q4; on average, revenues beat analyst consensus estimates by 0.6% Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but traditional fast food stocks held their ground better than others, with the share prices up 4.2% on average since the previous earnings results.

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 $450.9 million, up 11.4% year on year, topping analyst expectations by 2.7%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' gross margin estimates.

“We reported strong double-digit fourth quarter and full-year organic revenue growth in excess of our guide,” said Josh Charlesworth, CEO.

Krispy Kreme Total Revenue

The stock is up 7.7% since the results and currently trades at $14.91.

Read our full report on Krispy Kreme here, it's free.

Best Q4: 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 $2.49 billion, up 19.4% year on year, outperforming analyst expectations by 7%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue estimates, driven by better-than-expected same store sales and a higher number of locations. Profitability was also solid, leading to an EPS beat.

Yum China Total Revenue

Yum China achieved the biggest analyst estimates beat among its peers. The stock is up 6.2% since the results and currently trades at $39.77.

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

Weakest Q4: 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 $9.43 billion, up 8.2% year on year, falling short of analyst expectations by 2.1%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.

The stock is down 4.8% since the results and currently trades at $89.6.

Read our full analysis of Starbucks's results here.

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 $1.18 billion, up 15.4% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a miss of analysts' gross margin estimates. On the other hand, revenue and EPS exceeded analysts' expectations.

The stock is down 7% since the results and currently trades at $11.11.

Read our full, actionable report on Arcos Dorados 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 $2.04 billion, flat year on year, falling short of analyst expectations by 3.3%. It was a slower quarter for the company, with a miss of analysts' revenue and earnings estimates.

Yum! Brands had the weakest performance against analyst estimates among its peers. The stock is up 9.3% since the results and currently trades at $139.01.

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

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