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A Look Back at Traditional Fast Food Stocks’ Q3 Earnings: Wendy's (NASDAQ:WEN) Vs The Rest Of The Pack

WEN Cover Image

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, including Wendy's (NASDAQ: WEN) 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 13 traditional fast food stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 8.3% on average since the latest earnings results.

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 $549.5 million, down 3% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

"Third quarter results were in line with our expectations, reflecting continued strength in our international business with 8.6% systemwide sales growth, the addition of 54 new restaurants globally and adjusted EBITDA growth," said Ken Cook, Interim CEO.

Wendy's Total Revenue

Wendy's scored the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 4% since reporting and currently trades at $8.47.

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

Best Q3: 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 $423.6 million, up 25.2% year on year, outperforming analysts’ expectations by 2.3%. The business had an exceptional quarter with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ revenue estimates.

Dutch Bros Total Revenue

Dutch Bros achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $60.82.

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

Weakest Q3: 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 $508.2 million, flat year on year, falling short of analysts’ expectations by 2.9%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a miss of analysts’ revenue estimates.

As expected, the stock is down 9% since the results and currently trades at $37.56.

Read our full analysis of Papa John’s results here.

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 $375.3 million, down 1.2% year on year. This result came in 0.8% below analysts' expectations. In spite of that, it was a very strong quarter as it recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 8.5% since reporting and currently trades at $3.45.

Read our full, actionable report on Krispy Kreme here, it’s free.

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 $1.98 billion, up 8.4% year on year. This print lagged analysts' expectations by 1.2%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ revenue estimates.

The stock is up 10.1% since reporting and currently trades at $153.51.

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

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StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

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