Traditional Fast Food Stocks Q3 Highlights: Jack in the Box (NASDAQ:JACK)
Looking back on traditional fast food stocks' Q3 earnings, we examine this quarter's best and worst performers, including Jack in the Box (NASDAQ:JACK) 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% 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 7.1% on average since the previous earnings results.
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 $372.5 million, down 7.5% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates but underwhelming earnings guidance for the full year.
“We achieved several important milestones for our business in 2023 including positive unit growth, successful new market openings, accelerated Del Taco refranchising, strong same stores sales performance and improvements in restaurant-level profitability,” said Darin Harris, Jack in the Box chief executive officer.
Jack in the Box delivered the slowest revenue growth of the whole group. The stock is up 8.1% since the results and currently trades at $74.4.
Read our full report on Jack in the Box here, it's free.
Best Q3: 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 $1.13 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 pulled off the biggest analyst estimates beat among its peers. The stock is up 12.7% since the results and currently trades at $11.88.
Is now the time to buy Arcos Dorados? Access our full analysis of the earnings results here, it's free.
Weakest Q3: 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 $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' revenue, gross margin, adjusted EBITDA, and EPS estimates. These misses were driven by underperformance in its U.S. division, which accounted for 63.9% of sales this quarter. On top of that, its revenue guidance for the full year was underwhelming.
Krispy Kreme had the weakest full-year guidance update in the group. The stock is up 0.9% since the results and currently trades at $13.56.
Read our full analysis of Krispy Kreme's results here.
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 $1.71 billion, up 4.1% year on year, falling short of analyst expectations by 3.6%. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' revenue estimates.
The stock is up 7.7% since the results and currently trades at $130.
Read our full, actionable report on Yum! Brands here, it's free.
McDonald's (NYSE:MCD)
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 a mixed quarter for the company, with a solid beat of analysts' revenue estimates. On the other hand, its gross margin sadly missed expectations.
The stock is up 13.8% since the results and currently trades at $291.04.
Read our full, actionable report on McDonald's here, it's free.
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The author has no position in any of the stocks mentioned
