A Look Back at Modern Fast Food Stocks’ Q2 Earnings: Noodles (NASDAQ:NDLS) Vs The Rest Of The Pack
As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the modern fast food industry, including Noodles (NASDAQ:NDLS) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.5%.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. Luckily, modern fast food stocks have performed well with share prices up 11.8% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 2.6%. Overall, it was a weaker quarter for the company with full-year revenue guidance missing analysts’ expectations.
Noodles delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Interestingly, the stock is up 9.6% since reporting and currently trades at $1.60.
Read our full report on Noodles 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 exceptional quarter for the company with an impressive beat of analysts’ gross margin estimates and a decent beat of analysts’ earnings estimates.
Wingstop achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 3% since reporting. It currently trades at $388.89.
Is now the time to buy Wingstop? Access our full analysis of the earnings results here, it’s free.
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, exceeding analysts’ expectations by 2.1%. It was a mixed quarter for the company with a decent beat of analysts’ gross margin estimates but a miss of analysts’ earnings estimates.
Interestingly, the stock is up 20.2% since the results and currently trades at $31.57.
Read our full analysis of Sweetgreen’s results here.
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, in line with analysts’ expectations. Zooming out, it was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a narrow beat of analysts’ earnings estimates.
The stock is up 13.4% since reporting and currently trades at $99.38.
Read our full, actionable report on Shake Shack 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%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ gross margin estimates and a narrow beat of analysts’ earnings estimates .
The stock is up 8.3% since reporting and currently trades at $56.08.
Read our full, actionable report on Chipotle here, it’s free.
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