Modern Fast Food Stocks Q2 In Review: Shake Shack (NYSE:SHAK) Vs Peers
Looking back on modern fast food stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Shake Shack (NYSE:SHAK) and its peers.
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 decent Q2. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, modern fast food stocks have been resilient with share prices up 8.2% on average since the latest earnings results.
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 $316.5 million, up 16.4% year on year. This print was in line with analysts’ expectations, and overall, it was a decent quarter for the company with a narrow beat of analysts’ earnings estimates.
Interestingly, the stock is up 13.4% since reporting and currently trades at $99.36.
Is now the time to buy Shake Shack? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $155.7 million, up 45.3% year on year, outperforming analysts’ expectations by 7.3%. It was an impressive quarter for the company with a decent beat of analysts’ earnings estimates.
Wingstop delivered the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $380.57.
Is now the time to buy Wingstop? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $127.4 million, up 1.8% year on year, falling short of analysts’ expectations by 2.6%. It was a weak quarter for the company with full-year revenue guidance missing analysts’ expectations.
Noodles had the weakest performance against analyst estimates and weakest full-year guidance update in the group. Interestingly, the stock is up 3.4% since the results and currently trades at $1.51.
Read our full analysis of Noodles’s results here.
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 $184.6 million, up 21.1% year on year, surpassing analysts’ expectations by 2.1%. Overall, it was a decent quarter for the company with full-year revenue guidance topping analysts’ expectations but a miss of analysts’ earnings estimates.
Sweetgreen pulled off the highest full-year guidance raise among its peers. The stock is up 14.9% since reporting and currently trades at $30.18.
Read our full, actionable report on Sweetgreen 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 $2.97 billion, up 18.2% year on year, surpassing analysts’ expectations by 1.1%. Taking a step back, it was a solid quarter for the company with a narrow beat of analysts’ earnings estimates.
The stock is up 3.1% since reporting and currently trades at $53.38.
Read our full, actionable report on Chipotle here, it’s free.
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