Q1 Earnings Highlights: Jack in the Box (NASDAQ:JACK) Vs The Rest Of The Traditional Fast Food Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 now behind us, let’s have a look at Jack in the Box (NASDAQ:JACK) 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 14 traditional fast food stocks we track reported a decent Q1; on average, revenues were in line with analyst consensus estimates. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and traditional fast food stocks have had a rough stretch, with share prices down 6.7% on average since the previous earnings results.
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 $365.3 million, down 7.7% year on year, falling short of analysts' expectations by 1.2%. Overall, it was an ok quarter for the company with an impressive beat of analysts' gross margin estimates but a miss of analysts' earnings estimates.
"I am proud of the execution by our Jack and Del Taco teams, delivering better-than-expected earnings and margin performance while navigating through increasing macro headwinds, pressure on low-income consumers and the implementation of California's minimum wage legislation," said Darin Harris, Jack in the Box Chief Executive Officer.
Jack in the Box delivered the slowest revenue growth of the whole group. The stock is down 9% since reporting and currently trades at $48.28.
Is now the time to buy Jack in the Box? Access our full analysis of the earnings results here, it's free.
Best Q1: El Pollo Loco (NASDAQ:LOCO)
With a name that translates into ‘The Crazy Chicken’, El Pollo Loco (NASDAQ: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 $116.2 million, up 1.4% year on year, outperforming analysts' expectations by 4.6%. It was an incredible quarter for the company with an impressive beat of analysts' earnings and gross margin estimates.
The market seems happy with the results as the stock is up 27.2% since reporting. It currently trades at $10.93.
Is now the time to buy El Pollo Loco? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $8.56 billion, down 1.8% year on year, falling short of analysts' expectations by 6.5%. It was a weak quarter for the company with a miss of analysts' gross margin and earnings estimates.
As expected, the stock is down 18% since the results and currently trades at $72.61.
Read our full analysis of Starbucks's results here.
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 $275.1 million, up 39.5% year on year, surpassing analysts' expectations by 7.6%. Revenue aside, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a solid beat of analysts' gross margin estimates.
Dutch Bros delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 39% since reporting and currently trades at $39.52.
Read our full, actionable report on Dutch Bros here, it's free.
Restaurant Brands (NYSE:QSR)
Formed through a strategic merger, Restaurant Brands International (NYSE:QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.
Restaurant Brands reported revenues of $1.74 billion, up 9.4% year on year, surpassing analysts' expectations by 2.2%. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts' gross margin estimates and a narrow beat of analysts' earnings estimates.
The stock is down 2.1% since reporting and currently trades at $72.28.
Read our full, actionable report on Restaurant Brands here, it's free.
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