Wrapping up Q4 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, including Domino's (NYSE:DPZ) 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 15 traditional fast food stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 0.6%. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and traditional fast food stocks have held roughly steady amidst all this, with share prices up 2.8% on average since the previous earnings results.

Domino's (NYSE: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 $1.40 billion, flat year on year, falling short of analyst expectations by 1.3%. It was a mixed quarter for the company: Although Domino's missed analysts' revenue estimates this quarter, its EPS beat expectations. The lower revenue was caused by fewer store openings than expected (394 new stores vs estimates of 433) while the higher profitability was driven by outperformance in its U.S. same-store sales growth, which clocked in at 2.8%, marking an acceleration from its 1.6% growth for all of 2023.

"Our strong fourth quarter demonstrates that our Hungry for MORE strategy is already delivering results. This strategy, which we recently unveiled at our Investor Day, is our plan to deliver MORE sales, MORE stores and MORE profits," said Russell Weiner, Domino's Chief Executive Officer.

The stock is up 16.7% since the results and currently trades at $505.99.

Read our full report on Domino's 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 revenue outperforming Wall Street's estimates, driven by better-than-expected same store sales and a higher number of locations. Profitability was solid, leading to an EPS beat.

Yum China achieved the biggest analyst estimates beat among its peers. The stock is up 3.6% since the results and currently trades at $38.79.

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 estimates.

The stock is down 8.6% since the results and currently trades at $85.99.

Read our full analysis of Starbucks's results here.

Restaurant Brands (NYSE:QSR)

Formed through a strategic merger, Restaurant Brands International (NYSE:QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.

Restaurant Brands reported revenues of $1.82 billion, up 7.8% year on year, surpassing analyst expectations by 1%. It was a strong quarter for the company, with a decent beat of analysts' revenue and EPS estimates.

The stock is down 8.2% since the results and currently trades at $71.83.

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

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 an ok quarter for the company, with revenue and EPS narrowly topping analysts' estimates.

The stock is down 6.7% since the results and currently trades at $11.15.

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

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