The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how modern fast food stocks fared in Q3, starting with Sweetgreen (NYSE:SG).

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 mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

While some modern fast food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.

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 $173.4 million, up 13% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates.

Sweetgreen scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 6.3% since reporting and currently trades at $44.90.

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

Best Q3: Potbelly (NASDAQ:PBPB)

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 $115.1 million, down 4.7% year on year, outperforming analysts’ expectations by 1.7%. The business had a stunning quarter with a solid beat of analysts’ EPS and EBITDA estimates.

Potbelly scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 20.7% since reporting. It currently trades at $9.96.

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

Weakest Q3: Noodles (NASDAQ:NDLS)

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 $122.8 million, down 4% year on year, falling short of analysts’ expectations by 2.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Noodles delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 37.9% since the results and currently trades at $0.75.

Read our full analysis of Noodles’s results here.

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 $162.5 million, up 38.8% year on year. This print surpassed analysts’ expectations by 1.6%. However, it was a slower quarter as it recorded a significant miss of analysts’ EBITDA and EPS estimates.

Wingstop achieved the fastest revenue growth among its peers. The stock is down 9.9% since reporting and currently trades at $332.51.

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

Chipotle (NYSE:CMG)

Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.

Chipotle reported revenues of $2.79 billion, up 13% year on year. This number lagged analysts' expectations by 0.9%. Aside from that, it was a mixed quarter as it also logged a narrow beat of analysts’ EBITDA estimates but same-store sales in line with analysts’ estimates.

The stock is up 3.3% since reporting and currently trades at $62.47.

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

Market Update

In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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

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