Traditional Fast Food Stocks Q1 Earnings Lookback: Yum! Brands (NYSE:YUM) vs. the Rest of the Pack
Financial results often indicate where a company is headed in the months ahead. With the first quarter now behind us, let’s take a look at Yum! Brands (NYSE:YUM) and its peers.
Traditional fast food restaurants are known for their speed and convenience, offering menus filled with familiar, affordable dishes. Their on-the-go reputation makes them popular destinations for individuals and families in need of a quick meal. However, this category of restaurants battles the perception that their dishes are unhealthy and made with substandard ingredients, a battle that is especially relevant today given consumers’ growing focus on health and wellness.
All 14 traditional fast-food stocks we track had decent first quarters; on average, revenues were in line with analyst consensus estimates. Valuation multiples for many growth stocks have yet to return to their early-2021 highs, but the market was optimistic about late 2023 as inflation slowed. Early 2024 was a different story, as mixed signals led to market volatility and traditional fast-food stocks had a tough time, with stock prices down 8.6% on average since the previous financial results.
Yum! Brands (NYSE:YUM)
Created as an independent company from PepsiCo, Yum! Brands (NYSE: YUM) is a multinational corporation that owns KFC, Pizza Hut, Taco Bell and The Habit Burger Grill.
Yum! Brands reported revenue of $1.60 billion, down 2.9% from a year earlier and 6.6% below analysts’ expectations. It was a mixed quarter for the company, with gross margin significantly above analysts’ estimates but earnings below analysts’ estimates.

Yum! Brands was the weakest performer compared to analyst estimates of the entire group. The stock is down 8.6% since the release of the report and is currently trading at $129.16.
Is now the time to buy Yum! Brands? Access our full financial results analysis for free here.
Best Q1: El Pollo Loco (NASDAQ:LOCO)
With a name that translates to “The Crazy Chicken,” El Pollo Loco (NASDAQ: LOCO) is a fast food chain known for its citrus-marinated, fire-grilled chicken recipe that originated in the coastal city of Sinaloa, Mexico.
El Pollo Loco reported revenue of $116.2 million, up 1.4% from a year earlier and beating analysts’ expectations by 4.6%. It was an incredible quarter for the company, which impressively beat analysts’ estimates for both earnings and gross margin.

The market seems pleased with the results as the stock has gained 27.2% since the results were released. It is currently trading at $10.93.
Is now the time to buy El Pollo Loco? Access our full financial analysis here, it’s free.
Weakest First Quarter: Starbucks (NASDAQ:SBUX)
Founded by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a world-renowned coffeehouse chain offering a wide selection of high-quality coffee, beverages and food products.
Starbucks reported revenue of $8.56 billion, down 1.8% from a year earlier and 6.5% below analysts’ expectations. It was a weak quarter for the company, with analysts’ estimates for gross margin and profit falling short of analysts’ estimates.
As expected, the stock is down 18% since the earnings release and is currently trading at $72.61.
Read our full analysis of Starbucks’ results here.
Wendy’s (NASDAQ:WEN)
Founded by Dave Thomas in 1969, Wendy’s (NASDAQ: WEN) is a fast food restaurant chain known for its fresh, never frozen beef burgers, great-tasting menu options and commitment to quality.
Wendy’s reported revenue of $534.8 million, up 1.1% from a year earlier, which was 1.1% below analyst expectations. More broadly, it was a solid quarter for the company, with an impressive gross margin beat and a decent profit beat.
The stock is down 19% since the report and is currently trading at $15.91.
Read our full, actionable report on Wendy’s here, it’s free.
Dutch Bros (NYSE:BROS)
Founded in 1992 by two brothers who were once one man, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that has captured the hearts of coffee lovers across the United States.
Dutch Bros reported revenue of $275.1 million, up 39.5% from a year earlier and beating analysts’ expectations by 7.6%. More broadly, it was a very good quarter for the company, with earnings and gross margins significantly above analysts’ estimates.
Dutch Bros. beat analysts’ expectations and posted the fastest revenue growth among its peers. The stock is up 39% since the release and is currently trading at $39.52.
Read our full, actionable report on Dutch Bros here, it’s free.
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