Traditional Fast Food Stocks Q4 Highlights: Krispy Kreme (NASDAQ:DNUT)
As traditional fast food stocks’ Q4 earnings season wraps, let's dig into this quarter's best and worst performers, including Krispy Kreme (NASDAQ:DNUT) 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 15 traditional fast food stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 0.6% Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but traditional fast food stocks held their ground better than others, with the share prices up 6.2% on average since the previous 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 $450.9 million, up 11.4% year on year, topping analyst expectations by 2.7%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' gross margin estimates.
“We reported strong double-digit fourth quarter and full-year organic revenue growth in excess of our guide,” said Josh Charlesworth, CEO.
The stock is up 33.3% since the results and currently trades at $18.46.
Read our full report on Krispy Kreme here, it's free.
Best Q4: 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 $2.49 billion, up 19.4% year on year, outperforming analyst expectations by 7%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue estimates, driven by better-than-expected same store sales and a higher number of locations. Profitability was also solid, leading to an EPS beat.
Yum China delivered the biggest analyst estimates beat among its peers. The stock is up 4% since the results and currently trades at $38.94.
Is now the time to buy Yum China? Access our full analysis of the earnings results here, it's free.
Weakest Q4: 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 $9.43 billion, up 8.2% year on year, falling short of analyst expectations by 2.1%. It was a weak quarter for the company, with a miss of analysts' revenue and earnings estimates.
The stock is down 3.7% since the results and currently trades at $90.61.
Read our full analysis of Starbucks's results here.
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 $2.04 billion, flat year on year, falling short of analyst expectations by 3.3%. It was a slower quarter for the company, with a miss of analysts' revenue and earnings estimates.
Yum! Brands had the weakest performance against analyst estimates among its peers. The stock is up 6.9% since the results and currently trades at $136.
Read our full, actionable report on Yum! Brands 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 $540.7 million, flat year on year, falling short of analyst expectations by 1.1%. It was a slower quarter for the company, with underwhelming earnings guidance for the full year. Revenue missed Wall Street's estimates during the quarter due to same-store sales that fell below expectations.
The stock is down 5.5% since the results and currently trades at $18.23.
Read our full, actionable report on Wendy's here, it's free.
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