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Fast-food chains outperform in Q3

Published 11/20/2017, 01:33 PM
© Reuters.  Fast-food chains outperform in Q3
  • The fast food business is far from dead, observes Nation's Restaurant News editor Jonathan Maze.
  • Quick-service restaurants outperformed fast casual chains in Q3 (+1.1% vs. -2.4%) as menu innovation continues to contribute. Solid same-store gains were recorded by McDonald's (NYSE:MCD), Del Taco Restaurants (NASDAQ:TACO), Burger King (NYSE:QSR) and Taco Bell (NYSE:YUM) among others.
  • Maze says if there was one winner in the entire sector it was Domino's Pizza (NYSE:DPZ). The pizza chain's same-store sales of 8.4% obliterated the pace seen by peers during the same quarter. Papa Jophn's International (NASDAQ:PZZA) and Pie Five (NASDAQ:RAVE) in particular struggled during the quarter.
  • Nobody has to tell McDonald's shareholders about the turnaround of fast food sentiment. The share price of the Golden Arches is up 38% YTD to more than double the 15% return of the S&P 500 Index.


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