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 .

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 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 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 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”.

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 8.7% 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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Dutch Bros, BJ's, and El Pollo Loco Shares Skyrocket, What You Need To Know

Stock Story

What Happened?

A number of stocks jumped in the afternoon session after analysts at Bernstein highlighted a potential recovery for the sector in 2026. After a challenging 2025 marked by weakened consumer confidence, the firm anticipates a gradual traffic recovery.

Several factors could stimulate consumer demand, including an upcoming Tax Bill and the U.S.-hosted Soccer World Cup, with effects potentially starting in the spring. This optimistic outlook was supported by restaurant valuations hitting 10-year lows, suggesting significant upside if consumer spending data improves. Following a period where households cut back on dining out due to inflation, larger tax rebate checks are also seen as a potential catalyst for a rebound in casual dining.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

Traditional Fast Food company Dutch Bros jumped 5.8%. Is now the time to buy Dutch Bros? Access our full analysis report here, it’s free for active Edge members.
Sit-Down Dining company BJ's jumped 4.5%. Is now the time to buy BJ's? Access our full analysis report here, it’s free for active Edge members.
Traditional Fast Food company El Pollo Loco jumped 2.8%. Is now the time to buy El Pollo Loco? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Dutch Bros (BROS)

Dutch Bros’s shares are very volatile and have had 29 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 19 days ago when the stock gained 4.3% on the news that KeyBanc initiated coverage on the stock with an 'Overweight' rating, and the company opened its first store in Los Angeles. Analyst Eric Gonzalez from KeyBanc set a price target of $77.00. An 'Overweight' rating generally suggested that the analyst believed the stock would perform better than the average return of the stocks that the analyst covers.

Dutch Bros is up 1.7% since the beginning of the year, but at $63.24 per share, it is still trading 25.9% below its 52-week high of $85.37 from February 2025. Investors who bought $1,000 worth of Dutch Bros’s shares at the IPO in September 2021 would now be looking at an investment worth $1,724.

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BTIG’s Top Consumer Stock Picks for 2026

Investing.com

Alphabet-A

-1.96%

Advanced Micro Devices

Investing.com -- As investors look ahead to 2026, BTIG has identified several standout consumer stocks poised for growth despite recent challenges.

Get premium news and insight, AI stock picks, and deep research tools by upgrading to InvestingPro - get 55% off today

The firm’s analysis points to compelling opportunities across retail, footwear, and food service sectors.

Nike (NYSE:NKE) tops BTIG’s large-cap picks for 2026, with analyst Robert Drbul setting a $100 price target against its current $63.71 price. Despite ongoing challenges, BTIG sees multiple catalysts, including a robust product pipeline, innovation focus, and momentum from the upcoming 2026 World Cup.

The firm expects Nike to return to sustainable sales growth and achieve operating margins above 12% long-term, up from 6.5% in 2025.

In recent developments, Nike received a reiterated Buy rating from Guggenheim, which noted encouraging signs in the company’s North America unit growth, while the company’s CEO also purchased approximately $1 million in stock.

Gap Inc (NYSE:GAP) emerges as BTIG’s top small/mid-cap pick, with a $31 price target versus its current $25.60 price. Analyst Robert Drbul highlights continued strength at Old Navy and momentum at Gap Brand, both benefiting from denim and active wear trends.

The company’s beauty and accessories initiatives are expected to drive sales growth and margin expansion throughout 2026.

Gap Inc. reported better-than-expected third-quarter results, with comparable sales growth of 5%, leading Baird to upgrade the company’s rating to Outperform and several other firms to raise their price targets.

Domino’s Pizza (NYSE:DPZ) joins the large-cap top picks with a $530 price target against its current $416.82 price. Analyst Peter Saleh expects Domino’s to outperform in 2026 as it builds on sales layers to achieve mid-single-digit U.S. retail sales growth.

New menu innovation, third-party delivery growth, and loyalty programs should help the company continue its decade-long trend of gaining approximately 100 basis points of market share annually.

Domino’s Pizza posted third-quarter U.S. same-store sales growth of 5.3%, surpassing consensus expectations, which prompted reiterated Buy ratings from both UBS and Benchmark. The company also announced the resignation of a board member.

Wingstop (NASDAQ:WING) maintains its position as BTIG’s small/mid-cap top pick with a $400 price target versus its current $238.49 price.

Despite lower-income traffic declines, analyst Peter Saleh believes initiatives, including Smart Kitchen technology, loyalty programs, and increased advertising, will generate the anticipated same-store sales recovery in 2026.

Wingstop announced the opening of its 3,000th global restaurant, marking a significant expansion milestone. Following its latest operating results, some analysts lowered their price targets, citing an industry-wide slowdown in customer traffic.

On Holdings (NYSE:ONON) remains a large-cap top pick with a $70 price target against its current $46.48 price. Analyst Janine Stichter views the company as one of retail’s best growth stories, capable of consistently delivering growth exceeding 20%.

BTIG sees a balanced growth profile with opportunities across lifestyle and running segments, distribution channels, and geographies.

More recently, On Holdings has seen continued positive sentiment from analysts, with firms including Piper Sandler and TD Cowen raising their price targets while reiterating Overweight or Buy ratings on the company.

Steve Madden (NASDAQ:SHOO) is selected as BTIG’s small/mid-cap top pick for the first half of 2026 with a $50 price target versus its current $41.64 price.

Analyst Janine Stichter believes the company is at a critical inflection point with moderating tariff headwinds, accelerating organic top-line growth driven by fashion tailwinds, and increasing earnings contributions from the Kurt Geiger acquisition.

Steven Madden reported a third-quarter earnings per share beat, though revenue fell short of forecasts. Following the results and its acquisition of Kurt Geiger, the company received price target increases from firms including Williams Trading and BTIG.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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

Stock Story

Restaurant Brands International

+3.81%

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.

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”.

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.

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Restaurants, Weed, and Other Stock Themes On Our 2026 Radar — Barrons.com

Dow Jones Newswires

Philip Morris International

+1.92%

By Nathaniel Baker, Teresa Rivas, Jacob Sonenshine, Todd Chanko, Josh Schafer, and Dan Victor

As 2025 winds to a close, Barron's Investor Circle reporters are, not unexpectedly, already staking out the investment landscape for 2026.

What parts of the market are we bullish on for next year? Within those sectors, what stocks do we like? Do we have any particular favorites?

Internal discussions and brainstorming with market participants identified five segments we think can outperform the S&P 500 in 2026 (in no particular order):

Restaurant stocks through the AdvisorShares Restaurant ETF
Home builders and residential real estate proxies via the Hoya Capital Housing ETF
Consumer staples (State Street Consumer Staples Select Sector SPDR ETF)
Artificial intelligence (Global X Artificial Intelligence & Technology ETF)
Cannabis stocks (AdvisorShares Pure US Cannabis ETF)

We discuss each sector in turn, name individual stocks of interest for each, and in several sections even choose our favorite. Read on and supply your comments in the section below!

Restaurants

The argument for restaurant stocks starts with the fact that consumer demand is positioned well. The cyclical nature of the industry means restaurants can enjoy more growth against an encouraging macro backdrop: The Federal Reserve has cut interest rates, and will cut more if the rate of inflation continues to drop toward its 2% goal. It's also pumping $40 billion monthly into the short-term Treasury market, another factor meant to keep fixed-income prices high — and rates low. This will help consumers spend more on going out next year versus 2025. Lower rates tend to boost economic activity gradually, not all at once.

The industry can also benefit from lowered expectations, with relatively easy sales comparisons for 2026. This year, mild inflation and a greater volume of meals sold pushed sales up just over 8% year over year, below the 11.5% annualized growth since 2020, according to our calculations of St. Louis Fed data. The takeaway: growth slowed this year, creating a low-enough base of expansion. As long as people have more money to spend next year and the economy ultimately keeps producing more jobs, continued growth shouldn't be very difficult.

This will expand profit margins because wage growth has been a few percentage points below sales growth. Mix in some fixed costs, and revenue should rise faster than expenses.

If the market expects these trends to continue into 2027, the stocks could rally more.

Individual stocks to watch:

McDonald's
Yum! Brands
Chipotle Mexican Grill
Restaurant Brands International
Domino's Pizza

All trade within a point above or below the S&P 500's 22 times forward 12-months earnings, whereas they can trade at substantial premiums in the last five years.

Our favorite: Domino's trades at 22.5 times earnings, versus a more than 50% premium in moments when the market is more confident in its business. That confidence should arrive in 2026, given that analysts expect continued market share gains within the pizza category. Average analyst guidance is for total revenue growth of close to 7%, driven by mild same-store-sales growth and more locations around the world, according to FactSet. Key drivers include a ramp-up of its Uber Eats and DoorDash presence and faster delivery times.

Jacob Sonenshine

Home builders

Now that the Fed has delivered on its anticipated 25 bps rate cut, a foundation for renewed growth in home formation has been laid. According to a study by Realtor.com, mortgage rates are expected to decline modestly to 6.3% from 2025's 6.6% average, while single-family home housing starts are expected to climb 3.1% to 1 million. Investors may want to allocate room in their 2026 strategy as housing trends stabilize.

Individual stocks to watch:

Toll Brothers. Home builder of detached and attached homes mainly on both coasts. The stock is up 11% year to date, generates a 6.6% free cash flow yield, and pays a modest 1% dividend.
La-Z-Boy. The eponymous manufacturer of the legendary chair is down 9.6% year to date but has had a dramatic resurgence in the last quarter, up 16.9%. Who wouldn't want to plop into their new La-Z-Boy in their new den? The stock generates a 7.5% free cash flow yield and offers a 2.43% dividend yield at current prices.
Truist Financial Corp. The financial holding company provides a range of services to individual and commercial customers. Its stock is up 15.4% this year. Truist generates a 6.9% free cash flow yield and offers a 4.16% dividend yield at current prices.

Our sector favorite: La-Z-Boy. The nearly 100-year old company, founded in a garage in Michigan, enjoys universal brand recognition, trades at a forward P/E multiple of 12.9, and has grown its dividend 10% year over year. It stands to benefit not only from the potential lift in home formation, but also from the continuing preference of streaming new movies over theater attendance, according to a recent AP-NORC Public Affairs poll.

Todd Chanko

Consumer Staples

Essentials have been anything but when it comes to stock performance: The State Street Consumer Staples Select Sector SPDR exchange-traded fund has basically gone nowhere in 2025. In fact, XLP has been a laggard for some time, with owners seeing a measly 16% gain over the past five years, a period when the S&P 500 gained nearly 85%.

Nor can they comfort themselves with the fact that defensives have been out of favor, as the healthcare and utilities sectors have rallied too.

"Everyone — just hit the reset button," was the title of the recent 2026 staples outlook from RBC Capital Markets analyst Nik Modi, who wrote that "2025 has been one of the toughest we can remember in our 25 years covering the consumer staples sector (stock performance and stock-picking!)."

Unfortunately next year doesn't look much better, with the Street nearly universally seeing another tough setup for staples, particularly packaged food, which has continued to be one of the most sluggish areas of the sector. A lack of pricing power and commodity volatility will continue to be hindrances for many of these stocks. GLP-1s are a worry for snack companies, and overall wellness trends mean highly processed foods remain out of favor.

Yet investors don't have to avoid it all together if they look for companies bucking the trend with resilient volumes despite a tough backdrop.

Individual stocks to watch:

Philip Morris has been a standout in 2025 and that momentum is likely to continue. The company's reduced risk products, including its signature iQos device that heats rather than burns tobacco, will likely continue to see rapid adoption. The shares look cheap after a late-year selloff and sports a juicy dividend.
Monster Beverage looks like it's another momentum play for 2026. Demand for energy drinks remains high, making it another rare bright spot in staples and Monster looks poised to keep benefiting. The shares aren't cheap but are nonetheless below their five-year average, and it looks like Monster will notch another year of double-digit earnings growth.
Bellring Brands shares have fallen off a cliff in 2025, but could be a potential underdog -- or long-shot -- for 2026. It's a play on Americans' increasing quest for protein, with ready-to-drink shakes and nutrition bars, but it's been hit with tariffs, raw material problems, and disappointing earnings. Yet with the bar already set low for 2026, the shares could rebound on any unexpected strength. The average analyst target implies some 30% upside while consensus calls for a return to double-digit earnings per share growth, although valuation isn't a steal.

Teresa Rivas

Artificial Intelligence

The bull case here is rather simple: AI capex continues to ramp higher and companies who are increasingly showing that AI is boosting their sales and profits will keep winning in the market. In other words, exactly what happened in 2025. The AIQ ETF offers a diversified way to express AI optimism with just three of the Magnificent Seven — Alphabet, Apple and Tesla — inside its 10 largest holdings.

Even in 2025 when the AI trade largely rotated away from some of 2023 and 2024's market leaders, AIQ rose about 32%, outperforming the Roundhill Magnificent Seven ETF and the S&P 500. So this ETF could likely hang on if the AI trade shifts but doesn't fully disappear.

The stocks listed below are held by AIQ and are also Barron's stock picks.
Names of interest:
Alphabet
Salesforce
Netflix

Josh Schafer

Cannabis

The bulls case rests in no small part on legalization efforts, including news that Trump will sign an executive order that reschedules marijuana under Federal law from a Schedule I to Schedule III controlled substance. This should ultimately pave the way for more states to legalize the recreational market, boosting demand that ultimately supports stronger growth and earnings for the major players. Dispensary stocks (MSOs) currently trading over the counter may be eligible to uplist to major exchanges like the Nasdaq or NYSE.

Individual stocks to watch:

Curaleaf Holdings Inc.
Trulieve Cannabis Corp.
Green Thumb Industries
Tilray Brands
Canopy Growth Corp.

Our favorite: Curaleaf is the largest holding in the MSOS ETF. The company operates in 17 states with 153 retail locations, making it uniquely positioned to benefit from continued growth in the U.S. cannabis market. Curaleaf also has exposure to multiple countries such as the U.K., Germany, and Australia, each of which are expanding medical marijuana access. Generating $1.3 billion in annual sales, Curaleaf's improving fundamentals warrants a spot on investors' radars.

Dan Victor

Risk Warnings and Disclaimers

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Q3 Earnings Roundup: El Pollo Loco (NASDAQ:LOCO) And The Rest Of The Traditional Fast Food Segment

Stock Story

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.

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 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”.

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.

Risk Warnings and Disclaimers

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Dutch Bros (BROS) Stock Trades Up, Here Is Why

Stock Story

Dutch Bros

+1.85%

What Happened?

Shares of coffee chain Dutch Bros jumped 4.3% in the morning session after KeyBanc initiated coverage on the stock with an 'Overweight' rating, and the company opened its first store in Los Angeles. Analyst Eric Gonzalez from KeyBanc set a price target of $77.00. An 'Overweight' rating generally suggested that the analyst believed the stock would perform better than the average return of the stocks that the analyst covers.

After the initial pop the shares cooled down to $65.21, up 3.5% from previous close.

What Is The Market Telling Us

Dutch Bros’s shares are extremely volatile and have had 30 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 15 days ago when the stock gained 2.9% on the news that RBC Capital raised its price target on the stock to $80 from $75, while maintaining its Outperform rating. The firm’s positive view followed a period of strong performance by the coffee chain. In its third quarter of 2025, Dutch Bros delivered robust results, with revenues climbing 25% compared to the same period in the previous year. System-wide same-shop sales also grew by 5.7%, driven by a significant increase in customer transactions. This marked the fifth consecutive quarter of transaction growth for the company, highlighting its momentum in the market.

Dutch Bros is up 15.8% since the beginning of the year, but at $65.21 per share, it is still trading 23.6% below its 52-week high of $85.37 from February 2025. Investors who bought $1,000 worth of Dutch Bros’s shares at the IPO in September 2021 would now be looking at an investment worth $1,778.

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