Traditional Fast Food Q3 Earnings: Arcos Dorados (NYSE:ARCO) is the Best in the Biz

Looking back on traditional fast food stocks' Q3 earnings, we examine this quarter's best and worst performers, including Arcos Dorados (NYSE:ARCO) 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 9% on average since the previous earnings results.

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, topping analyst expectations by 3.4%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue and earnings estimates.

Arcos Dorados achieved the biggest analyst estimates beat of the whole group. The stock is up 24.2% since the results and currently trades at $13.09.

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

Carrols (NASDAQ:TAST)

With a reputation for reviving underperforming locations, Carrols Restaurant Group (NASDAQ:TAST) is the largest franchisee of Burger King restaurants and also a major Popeyes franchisee.

Carrols reported revenues of $475.8 million, up 7.2% year on year, outperforming analyst expectations by 1.5%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

The stock is up 50.9% since the results and currently trades at $9.38.

Is now the time to buy Carrols? 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' earnings estimates.

Krispy Kreme had the weakest full-year guidance update in the group. The stock is up 2.6% since the results and currently trades at $13.79.

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

Wendy's (NASDAQ:WEN)

Founded by Dave Thomas in 1969, Wendy’s (NASDAQ:WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality.

Wendy's reported revenues of $550.6 million, up 3.4% year on year, falling short of analyst expectations by 0.8%. It was a strong quarter for the company, with a decent beat of analysts' earnings estimates.

The stock is up 0.2% since the results and currently trades at $19.03.

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

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 underwhelming earnings guidance for the full year.

Jack in the Box had the slowest revenue growth among its peers. The stock is up 11.4% since the results and currently trades at $76.7.

Read our full, actionable report on Jack in the Box here, it's free.

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The author has no position in any of the stocks mentioned