Q3 Earnings Highs And Lows: McDonald's (NYSE:MCD) Vs The Rest Of The Traditional Fast Food Stocks

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at traditional fast food stocks, starting with McDonald's (NYSE:MCD).

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% on average since the latest earnings results.

McDonald's (NYSE:MCD)

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE:MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.

McDonald's reported revenues of $7.08 billion, up 3% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.

"We increased global Systemwide sales by 6% and grew comp sales across all segments, a testament to our ability to deliver sustainable growth even in a challenging environment," said Chairman and CEO Chris Kempczinski.

Interestingly, the stock is up 2.2% since reporting and currently trades at $305.79.

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

Dutch Bros pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.1% since reporting. It currently trades at $61.34.

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 8.5% since the results and currently trades at $37.74.

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

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 result came in 3% below analysts' expectations. More broadly, 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 6.4% since reporting and currently trades at $7.67.

Read our full, actionable report on Arcos Dorados 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 $9.57 billion, up 5.5% year on year. This print surpassed analysts’ expectations by 2.6%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ same-store sales estimates.

The stock is up 14.6% since reporting and currently trades at $96.43.

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

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