Wrapping up Q3 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, including Yum China (NYSE:YUMC) 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 Q3; on average, revenues missed analyst consensus estimates by 0.6% Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but traditional fast food stocks held their ground better than others, with the share prices up 6.3% on average since the previous earnings results.
Weakest Q3: 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 $2.91 billion, up 8.5% year on year, falling short of analyst expectations by 5.7%. It was a weak quarter for the company, with a miss of analysts' revenue estimates.
Yum China delivered the weakest performance against analyst estimates of the whole group. The stock is down 27.5% since the results and currently trades at $38.09.
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 $1.13 billion, up 22.1% year on year, outperforming analyst expectations by 3.4%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue estimates.
Arcos Dorados scored the biggest analyst estimates beat among its peers. The stock is up 14.5% since the results and currently trades at $12.07.
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 $407.4 million, up 7.9% year on year, falling short of analyst expectations by 1.6%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.
Krispy Kreme had the weakest full-year guidance update in the group. The stock is up 6.6% since the results and currently trades at $14.33.
Arguably one of the most iconic brands in the world, McDonald’s (NYSE:MCD) is a fast-food behemoth known for its convenience, value, and wide assortment of menu items.
McDonald's reported revenues of $6.69 billion, up 14% year on year, surpassing analyst expectations by 2.2%. It was an impressive quarter for the company, with a decent beat of analysts' revenue estimates.
The stock is up 14.6% since the results and currently trades at $293.3.
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 $522.8 million, up 2.4% year on year, falling short of analyst expectations by 1.4%. It was a decent quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' revenue estimates.
The stock is up 10% since the results and currently trades at $71.76.
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The author has no position in any of the stocks mentioned