As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the traditional fast food industry, including Starbucks (NASDAQ: SBUX) 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 12 traditional fast food stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.6%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.2% since the latest earnings results.

Best Q2: 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 $9.32 billion, down 1.4% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ same-store sales estimates and full-year EPS guidance exceeding analysts’ expectations.

“Our Back to Starbucks plan was built on the belief that an extraordinary cup of coffee, human connection and customer experience win the day, every day. Our third quarter results are proof they do,” commented Brian Niccol, chairman and chief executive officer.

Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.6% since reporting and currently trades at $102.50.

Is now the time to buy Starbucks? Access our full analysis of the earnings results here, it’s free.

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 $550.9 million, up 32.5% year on year, outperforming analysts’ expectations by 4.7%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance beating analysts’ expectations.

Dutch Bros pulled off the fastest revenue growth in the group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 36% since reporting. It currently trades at $42.06.

Is now the time to buy Dutch Bros? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Papa John's (NASDAQ: PZZA)

Founded by the eclectic John “Papa John” Schnatter, Papa John’s (NASDAQ: PZZA) is a globally recognized pizza delivery and carryout chain known for “better ingredients” and “better pizza”.

Papa John's reported revenues of $482.4 million, down 8.8% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 38.4% since the results and currently trades at $18.33.

Read our full analysis of Papa John’s results here.

McDonald's (NYSE: MCD)

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.

McDonald's reported revenues of $7.10 billion, up 3.7% year on year. This result met analysts’ expectations. However, it was a mixed quarter as its performance in some other areas of the business was disappointing.

The stock is down 5.6% since reporting and currently trades at $250.40.

Read our full, actionable report on McDonald's here, it’s free.

Domino's (NASDAQ: DPZ)

Founded by two brothers in Michigan, Domino’s (NASDAQ: DPZ) is a globally recognized pizza chain known for its creative marketing and fast delivery.

Domino's reported revenues of $1.19 billion, up 3.4% year on year. This print surpassed analysts’ expectations by 0.9%. Aside from that, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but same-store sales in line with analysts’ estimates.

The stock is flat since reporting and currently trades at $312.94.

Read our full, actionable report on Domino's here, it’s free.

Market update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.