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Traditional Fast Food Stocks Q3 Teardown: Restaurant Brands (NYSE:QSR) Vs The Rest

QSR Cover Image

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Restaurant Brands (NYSE: QSR) and the best and worst performers in the traditional fast food industry.

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 6.6% on average since the latest earnings results.

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 exceeded analysts’ expectations by 2.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates.


Restaurant Brands Total Revenue

Interestingly, the stock is up 3% since reporting and currently trades at $67.60.

Is now the time to buy Restaurant Brands? Access our full analysis of the earnings results here, it’s free for active Edge members.

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.

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 10.7% since reporting. It currently trades at $62.23.

Is now the time to buy Dutch Bros? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 and a miss of analysts’ revenue estimates.

As expected, the stock is down 3.1% since the results and currently trades at $40.

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

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 number topped analysts’ expectations by 2.6%. It was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ same-store sales estimates.

The stock is flat since reporting and currently trades at $84.01.

Read our full, actionable report on Starbucks here, it’s free for active Edge members.

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 result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded a narrow beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates.

The stock is up 1.3% since reporting and currently trades at $303.00.

Read our full, actionable report on McDonald's here, it’s free for active Edge members.


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