Dutch Bros, BJ's, and El Pollo Loco Shares Skyrocket, What You Need To Know

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 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

Formed through a strategic merger, Restaurant Brands International 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.

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

Best Q3: Dutch Bros

Started in 1992 by two brothers as a single pushcart, Dutch 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 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.

Weakest Q3: Papa John's

Founded by the eclectic John “Papa John” Schnatter, Papa John’s 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

Started by three friends in Seattle’s historic Pike Place Market, Starbucks 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

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s 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.

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, including El Pollo Loco 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 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 8.2% on average since the latest earnings results.

El Pollo Loco

With a name that translates into ‘The Crazy Chicken’, El Pollo Loco is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that hails from the coastal town of Sinaloa, Mexico.

El Pollo Loco reported revenues of $121.5 million, flat year on year. This print fell short of analysts’ expectations by 2%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ revenue estimates.

Liz Williams, Chief Executive Officer of El Pollo Loco Holdings, Inc., stated, “Our third quarter results demonstrated the progress we are making across all aspects of our business. While our comparable store sales experienced a small decline, we are particularly pleased with our positive traffic growth during the quarter as we implemented targeted value and innovations that not only drove restaurant visits but also enhanced our brand equity. Our ongoing focus on operational excellence allowed us to deliver margin expansion at both the restaurant and corporate level. Our unit growth momentum continued with the opening of our 500th El Pollo Loco restaurant, and as we are building a pipeline that will almost double unit openings next year. As we look ahead, we remain laser-focused on executing against our five strategic pillars and continuing on our path of being the nation’s favorite fire-grilled chicken restaurant.”

Interestingly, the stock is up 18.6% since reporting and currently trades at $10.73.

Best Q3: Dutch Bros

Started in 1992 by two brothers as a single pushcart, Dutch 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 delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 14% since reporting. It currently trades at $64.07.

Weakest Q3: Papa John's

Founded by the eclectic John “Papa John” Schnatter, Papa John’s 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 4.7% since the results and currently trades at $39.30.

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

Krispy Kreme

Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme is one of the most beloved and well-known fast-food chains in the world.

Krispy Kreme reported revenues of $375.3 million, down 1.2% year on year. This print came in 0.8% below analysts' expectations. Zooming out, it was actually a very strong quarter as it put up a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 12.6% since reporting and currently trades at $4.24.

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

Wendy's

Founded by Dave Thomas in 1969, Wendy’s 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 $549.5 million, down 3% year on year. This number beat analysts’ expectations by 3.1%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Wendy's scored the biggest analyst estimates beat among its peers. The stock is down 6.2% since reporting and currently trades at $8.28.

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

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how sit-down dining stocks fared in Q3, starting with BJ's .

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 13 sit-down dining stocks we track reported a mixed 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% on average since the latest earnings results.

BJ's

Founded in 1978 in California, BJ’s Restaurants is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $330.2 million, up 1.4% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.

“We are pleased to report our 5th consecutive quarter of sales and traffic growth, along with our 4th consecutive quarter of profit expansion,” commented Lyle Tick, Chief Executive Officer and President.

The stock is up 40.7% since reporting and currently trades at $40.37.

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

Best Q3: Bloomin' Brands

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $928.8 million, down 10.6% year on year, outperforming analysts’ expectations by 2.7%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.8% since reporting. It currently trades at $7.03.

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

Slowest Q3: Denny's

Open around the clock, Denny’s is a chain of diner restaurants serving breakfast and traditional American fare.

Denny's reported revenues of $113.2 million, up 1.3% year on year, falling short of analysts’ expectations by 3.2%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 51.1% since the results and currently trades at $6.21.

Read our full analysis of Denny’s results here.

Texas Roadhouse

With locations often featuring Western-inspired decor, Texas Roadhouse is an American restaurant chain specializing in Southern-style cuisine and steaks.

Texas Roadhouse reported revenues of $1.44 billion, up 12.8% year on year. This number beat analysts’ expectations by 0.7%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ same-store sales estimates but a miss of analysts’ EBITDA estimates.

The stock is up 5.5% since reporting and currently trades at $169.62.

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

Brinker International

Founded by Norman Brinker in Dallas, Brinker International is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.35 billion, up 18.5% year on year. This print surpassed analysts’ expectations by 1.3%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts’ same-store sales estimates but full-year revenue guidance slightly missing analysts’ expectations.

Brinker International had the weakest full-year guidance update among its peers. The stock is up 15.7% since reporting and currently trades at $143.71.

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