Spotting Winners: Jack in the Box (NASDAQ:JACK) And Traditional Fast Food Stocks In Q2

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, 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 14 traditional fast food stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, traditional fast food stocks have been resilient with share prices up 5.2% on average since the latest 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 $369.2 million, down 7% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates.

“I am proud of our teams and how they continue to enhance the guest experience and deliver operational improvements during a challenging sales environment for our entire industry,” said Darin Harris, Jack in the Box Chief Executive Officer.

Jack in the Box delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 15.5% since reporting and currently trades at $45.11.

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

Best Q2: 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 $122.2 million, flat year on year, outperforming analysts’ expectations by 1.5%. It was a very strong quarter for the company with a decent beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 13.1% since reporting. It currently trades at $13.41.

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

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 $9.11 billion, flat year on year, falling short of analysts’ expectations by 1.5%. It was a weaker quarter for the company with a miss of analysts’ same store sales estimates.

Interestingly, the stock is up 20.3% since the results and currently trades at $91.32.

Read our full analysis of Starbucks’s results here.

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 $2.68 billion, flat year on year, falling short of analysts’ expectations by 2.9%. Overall, it was a weak quarter for the company with some shareholders hoping for a better result.

Yum China had the weakest performance against analyst estimates among its peers. The stock is up 15% since reporting and currently trades at $34.30.

Read our full, actionable report on Yum China here, it’s free.

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 $507.9 million, down 1.3% year on year, falling short of analysts’ expectations by 2.5%. Overall, it was a weaker quarter for the company with some shareholders hoping for a better result.

The stock is up 12.3% since reporting and currently trades at $47.71.

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

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