A Look Back at Traditional Fast Food Stocks’ Q2 Earnings: Krispy Kreme (NASDAQ:DNUT) Vs The Rest Of The Pack

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 Q2. Today, we are looking at traditional fast food stocks, starting with Krispy Kreme (NASDAQ:DNUT).

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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.6%.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

Luckily, traditional fast food stocks have performed well with share prices up 13.4% on average since the latest earnings results.

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 $438.8 million, up 7.3% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with full-year revenue guidance exceeding analysts’ expectations and a narrow beat of analysts’ earnings estimates.

“Krispy Kreme had another strong quarter as our fresh doughnuts are becoming even easier to purchase and more available globally,” said Josh Charlesworth, CEO.

Krispy Kreme scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 19% since reporting and currently trades at $10.98.

Is now the time to buy Krispy Kreme? Access our full analysis of the earnings results here, it’s free.

Best Q2: Dutch Bros (NYSE:BROS)

Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE:BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.

Dutch Bros reported revenues of $324.9 million, up 30% year on year, outperforming analysts’ expectations by 2.4%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates and full-year revenue guidance exceeding analysts’ expectations.

Dutch Bros achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.2% since reporting. It currently trades at $34.22.

Is now the time to buy Dutch Bros? Access our full analysis of the earnings results 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 $181.9 million, up 7.5% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a miss of analysts’ earnings estimates.

Interestingly, the stock is up 38.2% since the results and currently trades at $12.29.

Read our full analysis of Portillo’s results here.

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 $1.11 billion, up 6.8% year on year. This number topped analysts’ expectations by 4.4%. Overall, it was a very strong quarter as it also produced a narrow beat of analysts’ earnings estimates.

Arcos Dorados achieved the biggest analyst estimates beat among its peers. The stock is down 1.1% since reporting and currently trades at $10.

Read our full, actionable report on Arcos Dorados here, it’s free.

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 $570.7 million, up 1.6% year on year. This number missed analysts’ expectations by 1%. Aside from that, it was a mixed quarter as it also produced in-line earnings guidance for the full year but a miss of analysts’ earnings estimates.

The stock is up 14.6% since reporting and currently trades at $19.43.

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

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