Let’s dig into the relative performance of Jack in the Box (NASDAQ: JACK) and its peers as we unravel the now-completed Q2 traditional fast food earnings season.
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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 0.8%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Weakest Q2: Jack in the Box (NASDAQ: JACK)
Delighting customers since its inception in 1951, Jack in the Box (NASDAQ: JACK) is a distinctive fast-food chain known for its bold flavors, innovative menu items, and quirky marketing.
Jack in the Box reported revenues of $333 million, down 9.8% year on year. This print fell short of analysts’ expectations by 2.1%. Overall, it was a softer quarter for the company with a miss of analysts’ EBITDA and same-store sales estimates.
Jack in the Box delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 3.1% since reporting and currently trades at $18.35.
Read our full report on Jack in the Box here, it’s free.
Best Q2: 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 $415.8 million, up 28% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a solid beat of analysts’ EBITDA and same-store sales estimates.
Dutch Bros achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 12.6% since reporting. It currently trades at $65.08.
Is now the time to buy Dutch Bros? Access our full analysis of the earnings results here, it’s free.
Krispy Kreme (NASDAQ: DNUT)
Famous for its Original Glazed doughnuts and parent company of Insomnia Cookies, Krispy Kreme (NASDAQ: DNUT) is one of the most beloved and well-known fast-food chains in the world.
Krispy Kreme reported revenues of $379.8 million, down 13.5% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Krispy Kreme delivered the slowest revenue growth in the group. As expected, the stock is down 12.2% since the results and currently trades at $3.
Read our full analysis of Krispy Kreme’s results here.
Yum China (NYSE: YUMC)
One of China’s largest restaurant companies, Yum China (NYSE: YUMC) is an independent entity spun off from Yum! Brands in 2016.
Yum China reported revenues of $2.79 billion, up 4% year on year. This number came in 0.5% below analysts' expectations. Aside from that, it was a mixed quarter as it also logged a narrow beat of analysts’ same-store sales estimates but EPS in line with analysts’ estimates.
The stock is down 4.6% since reporting and currently trades at $44.36.
Read our full, actionable report on Yum China here, it’s free.
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 $9.46 billion, up 3.8% year on year. This print beat analysts’ expectations by 1.7%. However, it was a slower quarter as it recorded a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
The stock is down 10.7% since reporting and currently trades at $82.97.
Read our full, actionable report on Starbucks here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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