Wendy’s Stock Stuck At Pandemic-Era Lows As CEO Search Advances — Retail Eyes Sub-$8 Entry

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, including Wendy's 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 8.3% on average since the latest earnings results.

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 exceeded analysts’ expectations by 3.1%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

"Third quarter results were in line with our expectations, reflecting continued strength in our international business with 8.6% systemwide sales growth, the addition of 54 new restaurants globally and adjusted EBITDA growth," said Ken Cook, Interim CEO.

Wendy's scored the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 4% since reporting and currently trades at $8.47.

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 achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $60.82.

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 9% since the results and currently trades at $37.56.

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 result came in 0.8% below analysts' expectations. In spite of that, it was a very strong quarter as it recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 8.5% since reporting and currently trades at $3.45.

Read our full, actionable report on Krispy Kreme here, it’s free.

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 lagged analysts' expectations by 1.2%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ revenue estimates.

The stock is up 10.1% since reporting and currently trades at $153.51.

Read our full, actionable report on Yum! Brands here, it’s free.

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.

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 Jack in the Box jumped 8.2%. Is now the time to buy Jack in the Box? Access our full analysis report here, it’s free for active Edge members.
• Sit-Down Dining company Kura Sushi jumped 4.2%. Is now the time to buy Kura Sushi? Access our full analysis report here, it’s free for active Edge members.
• Traditional Fast Food company Starbucks jumped 4.3%. Is now the time to buy Starbucks? Access our full analysis report here, it’s free for active Edge members.
• Traditional Fast Food company Wendy's jumped 3.3%. Is now the time to buy Wendy's? Access our full analysis report here, it’s free for active Edge members.
• Sit-Down Dining company The Cheesecake Factory jumped 3.2%. Is now the time to buy The Cheesecake Factory? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Jack in the Box (JACK)

Jack in the Box’s shares are extremely volatile and have had 52 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 14 days ago when the stock dropped 3.3% on the news that it completed the sale of its Del Taco subsidiary for approximately $119 million, crystallizing a significant loss on the investment. The fast-food chain had acquired Del Taco in 2022 for about $585 million, meaning the sale resulted in a substantial financial hit. While the company stated the deal was part of a plan to reduce debt and shift to a business model with fewer physical assets, the transaction highlighted broader financial issues.

Jack in the Box is up 9.7% since the beginning of the year, but at $20.55 per share, it is still trading 51.7% below its 52-week high of $42.58 from February 2025. Investors who bought $1,000 worth of Jack in the Box’s shares 5 years ago would now be looking at an investment worth $212.66.

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.