Let's dig into the relative performance of Domino's (NYSE:DPZ) and its peers as we unravel the now-completed Q2 restaurants earnings season.
The restaurant sector, ranging from fast food to sit-down dining, plays a crucial role in our society. Beyond offering a gateway to diverse culinary experiences and cultures, restaurants serve as meeting hubs for friends, family, and colleagues. Because of these in-person dynamics, the threat to physical restaurants from online competition is less pronounced than other retail-oriented businesses. Still, restaurants must innovate to satisfy evolving taste, service, and sustainability preferences.
The 6 restaurants stocks we track reported an ok Q2; 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 while some of the restaurants stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.7% on average since the previous earnings results.
Domino's (NYSE:DPZ) 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 $1.10 billion, up 7.1% year on year, in line with analysts' expectations. Overall, it was a weak quarter for the company with a miss of analysts' gross margin estimates.
"Our year-to-date performance demonstrates that our Hungry for MORE strategy is off to a great start, having an immediate impact on sales and profits," said Russell Weiner, Domino's Chief Executive Officer.
The stock is down 10.2% since reporting and currently trades at $425.
Is now the time to buy Domino's? Find out by reading the original article on StockStory, it's free.
Best Q2: BJ's (NASDAQ:BJRI) Founded in 1978 in California, BJ’s Restaurants (NASDAQ:BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
BJ's reported revenues of $349.9 million, flat year on year, in line with analysts' expectations. It was a solid quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is flat since reporting and currently trades at $37.
Weakest Q2: Kura Sushi (NASDAQ:KRUS) Known for its conveyor belt that transports dishes to diners, Kura Sushi (NASDAQ:KRUS) is a chain of sushi restaurants serving traditional Japanese fare with a touch of modernity and technology.
Kura Sushi reported revenues of $63.08 million, up 28.1% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' gross margin and earnings estimates.
As expected, the stock is down 6.6% since the results and currently trades at $54.69.
Texas Roadhouse (NASDAQ:TXRH) With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ:TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Texas Roadhouse reported revenues of $1.34 billion, up 14.5% year on year, in line with analysts' expectations. More broadly, it was a strong quarter for the company with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.
The stock is up 3.7% since reporting and currently trades at $172.19.
Chipotle (NYSE:CMG) Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Chipotle reported revenues of $2.97 billion, up 18.2% year on year, surpassing analysts' expectations by 1.1%. 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.
Chipotle achieved the biggest analyst estimates beat among its peers. The stock is down 1.9% since reporting and currently trades at $50.80.
This content was originally published on Stock Story
