The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how traditional fast food stocks fared in Q2, starting with Dutch Bros (NYSE:BROS).
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 12 traditional fast food stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.6%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.9% since the latest earnings results.
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 $550.9 million, up 32.5% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance beating analysts’ expectations.
Dutch Bros pulled off the fastest revenue growth in the 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 36.6% since reporting and currently trades at $41.63.
We think Dutch Bros is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q2: 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 $9.32 billion, down 1.4% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with an impressive beat of analysts’ same-store sales estimates and full-year EPS guidance exceeding analysts’ expectations.
