Spotting Winners: Yum! Brands (NYSE:YUM) And Traditional Fast Food Stocks In Q3

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Yum! Brands (NYSE:YUM) and the rest of the traditional fast food stocks fared in Q3.

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 9.1% on average since the latest earnings results.

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 fell short of analysts’ expectations by 1.2%. Overall, it was a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ revenue estimates.

Interestingly, the stock is up 14.5% since reporting and currently trades at $159.62.

Is now the time to buy Yum! Brands? 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 scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 10.5% since reporting. It currently trades at $62.11.

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.

As expected, the stock is down 12.2% since the results and currently trades at $36.24.

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

Restaurant Brands (NYSE:QSR)

Formed through a strategic merger, Restaurant Brands International (NYSE:QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.

Restaurant Brands reported revenues of $2.45 billion, up 6.9% year on year. This print beat analysts’ expectations by 2.4%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ same-store sales estimates.

The stock is up 4.3% since reporting and currently trades at $68.42.

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

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 $3.21 billion, up 4.4% year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it underperformed in some other aspects of the business.

The stock is up 8.7% since reporting and currently trades at $47.80.

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

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