Q1 Earnings Highs And Lows: Restaurant Brands (NYSE:QSR) Vs The Rest Of The Traditional Fast Food Stocks
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at traditional fast food stocks, starting with Restaurant Brands (NYSE:QSR).
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 14 traditional fast food stocks we track reported a decent Q1; on average, revenues were in line with analyst consensus estimates. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and while some of the traditional fast food stocks have fared somewhat better than others, they collectively declined, with share prices falling 4.3% on average since the previous earnings results.
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 $1.74 billion, up 9.4% year on year, topping analysts' expectations by 2.2%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' revenue estimates.
The stock is down 8.3% since the results and currently trades at $67.74.
Is now the time to buy Restaurant Brands? Access our full analysis of the earnings results here, it's free.
Best Q1: El Pollo Loco (NASDAQ:LOCO)
With a name that translates into ‘The Crazy Chicken’, El Pollo Loco (NASDAQ:LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico.
El Pollo Loco reported revenues of $116.2 million, up 1.4% year on year, outperforming analysts' expectations by 4.6%. It was an incredible quarter for the company, with an impressive beat of analysts' same store sales, revenue, gross margin, and EPS expectations.
The stock is up 27.8% since the results and currently trades at $10.98.
Is now the time to buy El Pollo Loco? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $8.56 billion, down 1.8% year on year, falling short of analysts' expectations by 6.5%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates. Starbucks's demand in China was especially weak as its same-store sales fell 11%.
The stock is down 12.5% since the results and currently trades at $77.48.
Read our full analysis of Starbucks's results here.
Papa John's (NASDAQ:PZZA)
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 $513.9 million, down 2.5% year on year, falling short of analysts' expectations by 5.4%. 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 down 17% since the results and currently trades at $47.4.
Read our full, actionable report on Papa John's here, it's free.
Portillo's (NASDAQ:PTLO)
Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ:PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.
Portillo's reported revenues of $165.8 million, up 6.3% year on year, falling short of analysts' expectations by 5.2%. It was a mixed quarter for the company, with a miss of analysts' revenue estimates.
The stock is down 16.7% since the results and currently trades at $10.1.
Read our full, actionable report on Portillo's here, it's free.
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