Reflecting On Traditional Fast Food Stocks’ Q3 Earnings: Starbucks (NASDAQ:SBUX)

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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 Starbucks 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 8% on average since the latest earnings results.

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 print exceeded analysts’ expectations by 2.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ same-store sales estimates.

Interestingly, the stock is up 14.6% since reporting and currently trades at $96.43.

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 scored 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.

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

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

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 missed analysts’ expectations by 2%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ revenue estimates.

The stock is up 22% since reporting and currently trades at $11.04.

Read our full, actionable report on El Pollo Loco here, it’s free.

Jack in the Box

Delighting customers since its inception in 1951, Jack in the Box is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.

Jack in the Box reported revenues of $326.2 million, down 6.6% year on year. This result surpassed analysts’ expectations by 2.5%. Zooming out, it was a softer quarter as it logged full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

Jack in the Box had the slowest revenue growth among its peers. The stock is up 47.3% since reporting and currently trades at $21.19.

Read our full, actionable report on Jack in the Box here, it’s free.

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

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Restaurant Brands International

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 and the rest of the traditional fast food stocks fared in Q3.

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

Spun off as an independent company from PepsiCo, Yum! Brands 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.

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 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.

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”.

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

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 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

One of China’s largest restaurant companies, Yum China 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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Why Papa John's (PZZA) Stock Is Down Today

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Papa John's

+1.06%

What Happened?

Shares of fast-food pizza chain Papa John’s fell 5% in the afternoon session after Mizuho lowered its price target on the company's shares to $40 from $44.

The investment firm kept its "Neutral" rating on the stock, but the reduced price target suggested less optimism about the company's near-term growth prospects. This revision from a financial firm can lead investors to reconsider a stock's potential, often causing the price to fall as the market adjusts to the new, lower valuation. Mizuho's action was part of a broader adjustment of targets for the restaurant sector as the firm provided its outlook for 2026.

The shares closed the day at $36.22, down 4.5% from previous close.

What Is The Market Telling Us

Papa John’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 7 days ago when the stock dropped 2.5% on the news that reports revealed cautious analyst commentary and news of a $5 million legal settlement over its hiring practices.

Additionally, the company reached a $5 million settlement regarding a policy that prohibited its franchise locations from hiring employees from one another. Papa John's pledged to cease enforcing these hiring limitations. This news surfaced amid broader concerns about the company's performance, as its same-store sales had averaged annual declines over the previous two years, indicating soft demand.

Papa John's is down 10.1% since the beginning of the year, and at $36.23 per share, it is trading 34.5% below its 52-week high of $55.31 from October 2025. Investors who bought $1,000 worth of Papa John’s shares 5 years ago would now be looking at an investment worth $372.12.

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Winners And Losers Of Q3: Yum China (NYSE:YUMC) Vs The Rest Of The Traditional Fast Food Stocks

Stock Story

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 Yum China .

The 13 traditional fast food stocks we track reported a satisfactory Q3. As a group, revenues were in line with analysts’ consensus estimates.

Luckily, traditional fast food stocks have performed well with share prices up 11.2% on average since the latest earnings results.

Yum China

One of China’s largest restaurant companies, Yum China 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 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.

Interestingly, the stock is up 10.6% since reporting and currently trades at $48.65.

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 delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.5% since reporting. It currently trades at $61.55.

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”.

As expected, the stock is down 7.8% since the results and currently trades at $38.05.

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

Domino's

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 $1.15 billion, up 6.2% year on year. This print beat analysts’ expectations by 0.9%. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a narrow beat of analysts’ revenue estimates.

The stock is up 1% since reporting and currently trades at $412.37.

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

El Pollo Loco

El Pollo Loco reported revenues of $121.5 million, flat year on year. This number lagged analysts' expectations by 2%. Taking a step back, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ revenue estimates.

The stock is up 24% since reporting and currently trades at $11.22.

Read our full, actionable report on El Pollo Loco here, it’s free.

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Google Bets on AI-Based Shopping With New AI Agents for Retailers — WSJ

Dow Jones Newswires

By Belle Lin

Google unveiled a set of tools for retailers that helps them roll out AI agents, aiming to make it easier for brands to reach their customers who are shopping with the technology.

The new retail AI agents, which help shoppers find their desired items, provide customer support and let people order food at restaurants, are part of what Alphabet-owned Google calls Gemini Enterprise for Customer Experience.

Major retailers, including home improvement giant Lowe's, the grocer Kroger and pizza chain Papa Johns say they are already using Google's tools to help prepare for the incoming wave of AI-assisted shopping and ordering.

Cincinnati-based Kroger is testing Google's shopping agent, which helps customers compare grocery items, personalizes their shopping experience and can handle purchasing, according to Yael Cosset, the company's chief digital officer and executive vice president. "Things are moving at a pace that if you're not already deep into [AI agents], you're probably creating a competitive barrier or disadvantage," Cosset said.

The shopping agent, which is available through Kroger's mobile app, is capable of understanding context and intent, such as a shopper's time constraints and meal plans, and combines that with customer data Kroger already has, including price sensitivity, flavor and brand affinity, Cosset added.

Google's new artificial-intelligence tools mark the company's first foray into AI-agent based shopping for retailers, and comes as the nascent agentic commerce market takes shape.

AI agents, which are the independent bots that can take action on behalf of humans, are becoming a growing medium by which shoppers are beginning to cede control over what and how they buy online. People are starting to turn to AI chatbots and services to act as personal shopping assistants, or even asking AI agents to do their purchasing for them — though agent-based shopping isn't yet the dominant form of purchasing.

Kicking off the race among tech giants to get ahead of this shift, OpenAI released its Instant Checkout feature last fall, which lets users buy stuff directly through its chatbot ChatGPT. In January, Microsoft announced a similar checkout feature for its Copilot chatbot.

Soon after OpenAI's release last year, Walmart said it would partner with OpenAI to let shoppers buy its products within ChatGPT.

But for any retailer, making its products directly shoppable within AI chatbots like ChatGPT, Copilot or Google's Gemini risks hurting customer loyalty and could take away add-on sale opportunities. It could also dent ad revenue.

In contrast, developing their own AI agents and shopping channels gives retailers more control over how their products are being shown and delivered with AI.

"There's a market shift across the spectrum of retailers who are investing in their own capabilities rather than just relying on third-parties," said Lauren Wiener, a global leader of marketing and customer growth at Boston Consulting Group.

Google's new tools are meant to help address the challenges retailers might face in building their own AI agents, said Ed Anderson, a tech analyst at market research and consulting firm Gartner. "The real challenge here is application of the technologies," he said. "These announcements take a step forward so that retailers don't have to start from ground zero."

Mooresville, N.C.-based Lowe's is using Google's shopping agent as the back-end technology for its own virtual shopping assistant, called Mylow, said Seemantini Godbole, the company's chief digital and information officer. When shoppers engage with Mylow online, it more than doubles the company's conversation rate, Lowe's said.

But the technology behind AI agents is moving so quickly that the tech Lowe's builds can become outdated in a matter of two weeks, according to Godbole. That is partly why the company is betting on a number of vendors to support its AI agents, including OpenAI, she said.

Kroger is taking a similar tack and working with several tech vendors, including OpenAI and Instacart, said Cosset, its chief digital officer. "[AI agents] are not just top of mind, it's a priority for us," he said. "It's going at a remarkable pace."

Papa Johns doesn't build its own AI models or its own AI agents, said Chief Digital and Technology Officer Kevin Vasconi. That is why the pizza chain is testing Google's food ordering agent, which can perform tasks like automatically detecting how many pizzas a group might need based on a user-uploaded photo, Vasconi said. Customers will be able to use the agent through the phone, the Papa Johns website and its app.

"I don't want to be an AI expert in terms of building the agents," Vasconi said, "I want to be an AI expert in terms of, 'How do I use the agents?'"

Still, while AI agent-based commerce is evolving at a breakneck pace, there is reason for retailers to pause and take a beat.

"I don't think [AI agents] are going to totally change the industry," Vasconi said. "People still call our stores on the phone to order pizza in this day and age."

Kroger, Lowe's and Papa Johns declined to say specifically how Google's retail agents have so far made an impact on their business.

Write to Belle Lin at belle.lin@wsj.com

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Why Papa John's (PZZA) Stock Is Down Today

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Papa John's

+1.06%

What Happened?

Shares of fast-food pizza chain Papa John’s fell 2.5% in the morning session after reports revealed cautious analyst commentary and news of a $5 million legal settlement over its hiring practices.

An analyst at Jefferies reiterated a “Hold” rating on the stock, with a fiscal 2026 EBITDA forecast of approximately $205 million, below the Street's consensus estimate of $213 million. This followed a similar “Hold” rating from Stifel in the previous month. Additionally, the company reached a $5 million settlement regarding a policy that prohibited its franchise locations from hiring employees from one another. Papa John's pledged to cease enforcing these hiring limitations. This news surfaced amid broader concerns about the company's performance, as its same-store sales had averaged annual declines over the previous two years, indicating soft demand.

What Is The Market Telling Us

The previous big move we wrote about was 7 days ago when the stock gained 3.4% on the news that investor optimism grew around its turnaround plan, which highlighted significant cost savings and strong international growth.

Management identified $50 million in supply chain savings and another $25 million in general and administrative savings. The company also accelerated its move to re-franchise more of its North American locations, a pivot aimed at profitable growth with less capital. The international business showed signs of a continued recovery, with system-wide sales up 10.3% and comparable sales up 7.1%. Supporting this global push, Papa John's expanded its presence in India, opening its fifth outlet in Bengaluru. The company outlined clear expansion plans, aiming for 30 stores in India by the end of 2026 and a long-term goal of 650 outlets.

Papa John's is down 8.4% since the beginning of the year, and at $36.91 per share, it is trading 33.3% below its 52-week high of $55.31 from October 2025. Investors who bought $1,000 worth of Papa John’s shares 5 years ago would now be looking at an investment worth $395.42.

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Traditional Fast Food Stocks Q3 Recap: Benchmarking Arcos Dorados (NYSE:ARCO)

Stock Story

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 traditional fast food stocks fared in Q3, starting with Arcos Dorados .

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 7.9% on average since the latest earnings results.

Arcos Dorados

Translating to “Golden Arches” in Spanish, Arcos Dorados 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 print fell short of analysts’ expectations by 3%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ same-store sales estimates.

Arcos Dorados delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 6.3% since reporting and currently trades at $7.67.

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 scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.7% since reporting. It currently trades at $63.31.

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”.

As expected, the stock is down 8.7% since the results and currently trades at $37.68.

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

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 print surpassed analysts’ expectations by 3.1%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Wendy's pulled off the biggest analyst estimates beat among its peers. The stock is down 6.6% since reporting and currently trades at $8.25.

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

Domino's

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 $1.15 billion, up 6.2% year on year. This number beat analysts’ expectations by 0.9%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $406.34.

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

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