As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the traditional fast food industry, including Portillo's (NASDAQ: PTLO) 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 14 traditional fast food stocks we track reported a satisfactory Q4. As a group, revenues were in line with analysts’ consensus estimates.
While some traditional fast food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.8% since the latest earnings results.
Portillo's (NASDAQ: PTLO)
Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ: PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.
Portillo's reported revenues of $184.6 million, down 1.7% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
“We ended the year with solid momentum, supported by key initiatives that will drive our long-term growth,” said Michael Osanloo, President and Chief Executive Officer of Portillo’s.
The stock is down 8.5% since reporting and currently trades at $12.43.
Is now the time to buy Portillo's? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $342.8 million, up 34.9% year on year, outperforming analysts’ expectations by 7.6%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Dutch Bros achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 9.1% since reporting. It currently trades at $70.60.
Is now the time to buy Dutch Bros? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $404 million, down 10.4% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Krispy Kreme delivered the slowest revenue growth and weakest full-year guidance update in the group. As expected, the stock is down 39.5% since the results and currently trades at $5.52.
Read our full analysis of Krispy Kreme’s results here.
Domino's (NASDAQ: DPZ)
Founded by two brothers in Michigan, Domino’s (NYSE: DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery.
Domino's reported revenues of $1.44 billion, up 2.9% year on year. This number missed analysts’ expectations by 2.2%. Overall, it was a slower quarter as it also recorded EPS in line with analysts’ estimates.
The stock is flat since reporting and currently trades at $462.11.
Read our full, actionable report on Domino's here, it’s free.
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 $530.8 million, down 7.1% year on year. This result surpassed analysts’ expectations by 2.7%. It was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The stock is down 11.9% since reporting and currently trades at $40.74.
Read our full, actionable report on Papa John's here, it’s free.
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