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Q4 Earnings Highlights: Starbucks (NASDAQ:SBUX) Vs The Rest Of The Traditional Fast Food Stocks

StockStory - Wed Apr 3, 5:00AM CDT

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Let's dig into the relative performance of Starbucks (NASDAQ:SBUX) and its peers as we unravel the now-completed Q4 traditional fast food earnings season.

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% Inflation (despite slowing) has investors prioritizing near-term cash flows, but traditional fast food stocks held their ground better than others, with the share prices up 5% on average since the previous earnings results.

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.

“Our first quarter performance was strong on many measures. Of note was the unwavering commitment of our most loyal customers, the growth in rewards members, tender and spend per member,” commented Laxman Narasimhan, chief executive officer.

Starbucks Total Revenue

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

Is now the time to buy Starbucks? Access our full analysis of the earnings results 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 scored 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.

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, exceeding 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.

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

Read our full analysis of Krispy Kreme's results here.

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 $187.9 million, up 24.5% year on year, surpassing analyst expectations by 2%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue, gross margin, EBITDA and earnings estimates.

The stock is up 0.7% since the results and currently trades at $13.85.

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

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 $571.3 million, up 8.6% year on year, falling short of analyst expectations by 1.2%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is down 3.4% since the results and currently trades at $67.77.

Read our full, actionable report on Papa John's here, it's free.

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