Fast Food Chains Top Q1 Revenue Estimates Amid Broader Selloff on Iran Tensions

Traditional fast-food chains broadly exceeded first-quarter revenue expectations, but escalating US-Iran tensions dragged share prices lower across the sector. The 12 stocks tracked reported a combined 1.4% revenue beat relative to consensus, yet the group averaged a 2.9% decline since reporting, as geopolitical anxiety overshadowed earnings strength. Yum China (YUMC) posted revenue of $3.27 billion, up 9.7% year-over-year and 2% above estimates; its stock fell 8.6%. El Pollo Loco (LOCO) stood out with a 5.9% revenue gain to $126.2 million and a 3.2% beat, sending shares up 4.4%. Papa John’s (PZZA) sales declined 7.7% to $478.6 million and missed consensus, but its stock still rose 2.1%. Restaurant Brands (QSR) saw revenue climb 7.3% to $2.26 billion, edging past forecasts, though shares dropped 8.9%. Krispy Kreme (DNUT) reported a 2.2% revenue dip to $367 million, beating estimates by 0.5%, and its stock slipped 1.6%.