Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Wingstop (NASDAQ:WING), and the best and worst performers in the modern fast food group.
Modern fast food is a relatively newer category representing a middle ground between traditional fast food and sit-down restaurants. These establishments feature an expanded menu selection priced above traditional fast food options, often incorporating fresher and cleaner ingredients to serve customers prioritizing quality. These eateries are capitalizing on the perception that your drive-through burger and fries joint is detrimental to your health because of inferior ingredients.
The 6 modern fast food stocks we track reported a very strong Q3; on average, revenues beat analyst consensus estimates by 1.2% Stocks have faced challenges as investors prioritize near-term cash flows, but modern fast food stocks held their ground better than others, with the share prices up 26.8% on average since the previous earnings results.
Best Q3: Wingstop (NASDAQ:WING)
The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ:WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings.
Wingstop reported revenues of $117.1 million, up 26.4% year on year, topping analyst expectations by 7.3%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue, adjusted EBITDA and EPS estimates.
"Our third quarter results showcase the multi-year strategies we are executing against, delivering 15.3% domestic same-store sales growth in the quarter, primarily driven by transaction growth. We are measuring record levels in brand health metrics, demonstrating the underlying momentum at Wingstop, and putting us on a path to deliver our 20th consecutive year of domestic same-store sales growth," said Michael Skipworth, President and Chief Executive Officer.
Wingstop scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 50.9% since the results and currently trades at $275.75.
Shake Shack (NYSE:SHAK)
Started as a hot dog cart in New York City's Madison Square Park, Shake Shack (NYSE:SHAK) is a fast-food restaurant known for its burgers and milkshakes.
Shake Shack reported revenues of $276.2 million, up 21.2% year on year, in line with analyst expectations. It was an impressive quarter for the company, with an solid beat of analysts' adjusted EBITDA and EPS estimates.
The stock is up 18.9% since the results and currently trades at $68.
Is now the time to buy Shake Shack? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Sweetgreen (NYSE:SG)
Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE:SG) is a casual quick service chain known for its healthy salads and bowls.
Sweetgreen reported revenues of $153.4 million, up 23.7% year on year, falling short of analyst expectations by 0.8%. It was a weak quarter for the company, with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.
Sweetgreen had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 3.4% since the results and currently trades at $10.65.
Offering pasta, mac and cheese, pad thai, and more, Noodles & Company (NASDAQ:NDLS) is a casual restaurant chain that serves all manner of noodles from around the world.
Noodles reported revenues of $127.9 million, down 1.2% year on year, surpassing analyst expectations by 1.4%. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Noodles delivered the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 18.4% since the results and currently trades at $2.61.
With a unique origin story where the company actually started as an antique shop, Potbelly (NASDAQ:PBPB) today is a chain known for its toasty sandwiches.
Potbelly reported revenues of $120.8 million, up 2.7% year on year, falling short of analyst expectations by 0.7%. It was a mixed quarter for the company, with an impressive beat of analysts' adjusted EBITDA and EPS expectations. On the other hand, its revenue missed Wall Street's estimates, driven by its underperformance in same-store sales.
The stock is up 46.9% since the results and currently trades at $12.9.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
The author has no position in any of the stocks mentioned