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Q3 Rundown: Starbucks (NASDAQ:SBUX) Vs Other Traditional Fast Food Stocks

SBUX Cover Image

Looking back on traditional fast food stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Starbucks (NASDAQ: SBUX) 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.

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 $9.57 billion, up 5.5% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ same-store sales estimates.

Starbucks Total Revenue

Interestingly, the stock is up 14.5% since reporting and currently trades at $96.36.

Is now the time to buy Starbucks? 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 an impressive beat of analysts’ same-store sales estimates and a solid beat of analysts’ revenue estimates.

Dutch Bros Total Revenue

Dutch Bros delivered 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.

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 $121.5 million, flat year on year. This number lagged analysts' expectations by 2%. Aside from that, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ revenue estimates.

The stock is up 21% since reporting and currently trades at $10.96.

Read our full, actionable report on El Pollo Loco here, it’s free.

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 $1.19 billion, up 5.2% year on year. This print missed analysts’ expectations by 3%. Zooming out, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a significant miss of analysts’ same-store sales estimates.

Arcos Dorados had the weakest performance against analyst estimates among its peers. The stock is up 8.2% since reporting and currently trades at $7.80.

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

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