Traditional Fast Food Stocks Q4 Teardown: Yum! Brands (NYSE:YUM) Vs The Rest
Looking back on traditional fast food stocks' Q4 earnings, we examine this quarter's best and worst performers, including Yum! Brands (NYSE:YUM) 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% 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 4.5% on average since the previous earnings results.
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 $2.04 billion, flat year on year, falling short of analyst expectations by 3.3%. It was a slower quarter for the company, with a miss of analysts' revenue and earnings estimates.
Yum! Brands delivered the weakest performance against analyst estimates of the whole group. The stock is up 5.8% since the results and currently trades at $134.63.
Is now the time to buy Yum! Brands? 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 solid, leading to an EPS beat.
Yum China achieved the biggest analyst estimates beat among its peers. The stock is up 3.1% since the results and currently trades at $38.63.
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 and earnings estimates.
The stock is down 3.4% since the results and currently trades at $90.92.
Read our full analysis of Starbucks's results here.
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 $487.5 million, down 7.5% year on year, surpassing analyst expectations by 1.2%. It was a decent quarter for the company. While same-store sales for the main Jack in the Box concept missed, revenue still managed to outperform. Although gross margin beat, operating profit was roughly in line, leading to a penny miss on the EPS line.
Jack in the Box had the slowest revenue growth among its peers. The stock is down 8.9% since the results and currently trades at $67.37.
Read our full, actionable report on Jack in the Box here, it's free.
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 estimates.
The stock is up 2.9% since the results and currently trades at $80.5.
Read our full, actionable report on Restaurant Brands here, it's free.
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