Q3 Earnings Highs And Lows: Sweetgreen (NYSE:SG) Vs The Rest Of The Modern Fast Food Stocks

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)

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.

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Best Q3: Potbelly (NASDAQ:PBPB)

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.

Weakest Q3: Noodles (NASDAQ:NDLS)

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.

Wingstop (NASDAQ:WING)

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.

Chipotle (NYSE:CMG)

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.

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This content was originally published on Stock Story