The restaurant industry continues to navigate a complex operating backdrop characterized by evolving consumer behavior, persistent inflationary pressures and ongoing supply chain volatility. Despite near-term challenges, strategic actions centered on digital transformation, operational optimization and value-driven menu innovation are expected to have supported sector performance during the third quarter. Companies in the broader Retail-Wholesale sector, such as Shake Shack Inc. (SHAK Quick QuoteSHAK - Free Report) , BJ's Restaurants, Inc. (BJRI Quick QuoteBJRI - Free Report) and Restaurant Brands International Inc. (QSR Quick QuoteQSR - Free Report) , are set to report their respective third-quarter earnings on Oct. 30.

Across the industry, growth initiatives have revolved around leveraging digital platforms, enhancing delivery accessibility and expanding physical footprints in key urban and suburban markets. Restaurants are increasingly utilizing loyalty programs and mobile ecosystems to deepen engagement and drive frequency, supported by tailored marketing that aligns offers with customer preferences. The introduction of new limited-time offerings and product extensions has likely bolstered transaction momentum, particularly within quick-service and fast-casual formats that continue to benefit from their convenience and perceived affordability.

Many operators have leaned into balanced pricing and promotional strategies aimed at maintaining traffic while safeguarding profitability amid heightened cost dynamics. At the same time, the adoption of kitchen technology, data analytics and process automation has likely improved throughput and staffing efficiency, helping to partially offset rising wage and commodity costs. Moreover, efforts to enhance value perception through portion optimization, bundled meals and delivery integrations are expected to have strengthened brand loyalty in a price-sensitive consumer environment.

Nevertheless, macroeconomic headwinds remain a defining factor for the industry. Elevated beef and seafood costs, tariff-related uncertainties and ongoing labor inflation have continued to weigh on margins. A cautious consumer backdrop, particularly among value-oriented households, is likely to have influenced discretionary spending on dining out. Moreover, uneven daypart traffic and fluctuating international trends have created additional variability in same-store sales growth.

As the sector approaches the close of the year, execution around pricing discipline, productivity gains and targeted brand investments likely remains pivotal in determining which restaurant operators emerge strongest from this challenging but opportunity-rich environment.

Per the latest Earnings Outlook, total earnings of the Zacks Retail-Wholesale sector are expected to rise 5.3% year over year in the third quarter of 2025. In the second quarter of 2025, the sector’s earnings were up 12.9% year over year. Meanwhile, revenues for the sector are expected to rise 5.6% year over year. In the previous quarter, the sector’s revenues gained 6.1% year over year.

Sneak Peek Into Upcoming Earnings Releases

Among a number of stocks, to identify those with the potential to beat earnings estimates, the following Zacks methodology can be used. The Zacks model suggests that a company needs to have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Here are three bundled stocks that are set to report their third-quarter earnings. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shake Shack is scheduled to report results before the opening bell.

The company’s third-quarter performance is likely to have benefited from its strategic focus on driving traffic-led growth, menu innovation and operational efficiency. Shake Shack’s emphasis on culinary differentiation through limited-time offerings like the Dubai Shake and summer barbecue platform, coupled with digital activations and its first large-scale paid media campaign, is likely to have strengthened brand awareness and guest engagement. Efforts to streamline kitchen operations, improve labor productivity and introduce combo meals across drive-through locations may have further enhanced throughput and value perception. Additionally, disciplined expansion through both company-operated and licensed Shacks is expected to have supported system-wide sales growth during the quarter.

However, persistent cost inflation — particularly elevated beef prices — and increased marketing investments may have weighed on margin performance in the third quarter. The company’s accelerated development schedule and higher pre-opening costs could have added to third-quarter operating expenses.

The Zacks Consensus Estimate for Shake Shack’s third-quarter 2025 revenues is pegged at $363.5 million, indicating growth of 14.7% from the year-ago figure. Earnings per share (EPS) are pegged at 31 cents, indicating a rise of 24% from 25 cents reported in the year-ago quarter. 

The company has an Earnings ESP of -4.90% and a Zacks Rank #4 (Sell) at present. 

Restaurant Brands is scheduled to report results before the opening bell.

Restaurant Brands is likely to see strong momentum in its third quarter 2025 performance, driven by a solid foundation from its flagship brands and strategic investments. The company’s focus on operational improvements — including the continued success of Tim Hortons’ marketing initiatives, such as the launch of the Scrambled Eggs Loaded Breakfast Box — along with its sustained international growth, is expected to have supported top-line growth. Additionally, ongoing restaurant modernization efforts, particularly at Burger King, and disciplined cost management are likely to have supported its performance in the to-be-reported quarter.

However, rising commodity costs, especially beef, alongside inflationary pressures, could have weighed on the company’s margins. Potential challenges in the U.S. burger category, due to fierce competition and shifting consumer preferences, are likely to have dampened the bottom line. Inflationary costs, coupled with the early-stage losses from Popeyes China and Firehouse Subs, may also have impacted profitability in the third quarter.

The Zacks Consensus Estimate for Restaurant Brands’ third-quarter 2025 revenues is pegged at $2.39 billion, indicating growth of 4.3% from the year-ago figure. EPS is pegged at $1, indicating a rise of 7.5% from the 93 cents reported in the year-ago quarter.

The company has an Earnings ESP of -2.64% and a Zacks Rank #4 at present.

BJ's Restaurants is scheduled to report results after the closing bell. 

The company’s third-quarter performance is likely to have benefited from its strategic initiatives aimed at driving traffic and operational efficiency. BJ's focus on enhancing its value proposition through menu innovation, including the continued success of the Pizookie Meal Deal and other limited-time offerings, is expected to have bolstered guest engagement and traffic growth. Moreover, the company’s ongoing investments in improving kitchen operations, refining labor productivity and optimizing its restaurant-level cost structure have likely contributed to higher throughput and improved cost management. These efforts, combined with unit expansion, are expected to have supported the BJ’s top line in the third quarter.

However, inflationary pressures in key commodities, particularly beef and seafood, along with heightened marketing and digital investments, are likely to have tempered margin expansion during the third quarter. Although the company’s continued emphasis on operational efficiency and refined labor scheduling may have mitigated some of these cost headwinds, wage inflation and broader industry labor dynamics likely persisted as structural challenges. Furthermore, as BJ’s Restaurants advanced the rollout of its new pizza platform and pursued selective remodels to modernize its restaurant base, related pre-launch and refurbishment expenses may have introduced cost drag in the third quarter.

The Zacks Consensus Estimate for BJ's Restaurants’ third-quarter 2025 revenues is pegged at $335.6 million, indicating growth of 3% from the year-ago figure. Loss per share is pegged at 1 cent, narrower than the 13 cents reported in the year-ago quarter.

The company has an Earnings ESP of -233.3% and a Zacks Rank #4 at present.