The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Noodles (NASDAQ:NDLS) and the rest of the modern fast food stocks fared in Q1.
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 Q1; on average, revenues beat analyst consensus estimates by 2.3%. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and modern fast food stocks have held roughly steady amidst all this, with share prices up 1.1% on average since the previous earnings results.
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 $121.4 million, down 3.7% year on year, inline with analysts' expectations. It was a strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' earnings estimates.
Noodles delivered the weakest full-year guidance update of the whole group. The stock is down 6.3% since the results and currently trades at $1.63.
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Best Q1: 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 $145.8 million, up 34.1% year on year, outperforming analysts' expectations by 7.2%. It was a stunning quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' earnings estimates.
Wingstop achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 9.7% since the results and currently trades at $422.01.
Sweetgreen (NYSE: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 $157.9 million, up 26.2% year on year, exceeding analysts' expectations by 3.9%. It was a solid quarter for the company, with an impressive beat of analysts' gross margin estimates and full-year revenue guidance topping analysts' expectations.
Sweetgreen pulled off the highest full-year guidance raise in the group. The stock is up 30.9% since the results and currently trades at $30.84.
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 $111.2 million, down 6% year on year, surpassing analysts' expectations by 1.5%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.
Potbelly had the slowest revenue growth among its peers. The stock is down 22.2% since the results and currently trades at $7.72.
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 $2.70 billion, up 14.1% year on year, surpassing analysts' expectations by 1.2%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a decent beat of analysts' earnings estimates.
The stock is up 7.6% since the results and currently trades at $62.94.
