First Quarter Review: Shake Shack (NYSE: SHAK) vs. Other Modern Fast Food Stocks

Financial results often indicate where a company is headed in the coming months. With the first quarter now behind us, let’s take a look at Shake Shack (NYSE:SHAK) and its peers.

Modern fast food is a relatively new category that falls somewhere between traditional fast food and sit-down restaurants. These establishments offer a more varied menu at higher prices than traditional fast food options, often incorporating fresher, cleaner ingredients to serve customers who value quality. These restaurants capitalize on the perception that your drive-thru burger and fries restaurant is detrimental to your health due to inferior ingredients.

All 6 modern fast food stocks we track had very strong first quarters, with revenues beating analyst consensus estimates by 2.3% on average. Valuation multiples for many growth stocks have yet to return to their early 2021 highs, but the market was optimistic about late 2023 as inflation slowed. Early 2024 was a different story, as mixed signals led to market volatility, and while some modern fast food stocks fared slightly better than others, they collectively declined, with share prices down 2.7% on average since the previous financial results.

Shake Shack (NYSE: SHAK)

Launched as a hot dog stand in New York City’s Madison Square Park, Shake Shack (NYSE: SHAK) is a fast food restaurant known for its hamburgers and milkshakes.

Shake Shack reported revenue of $290.5 million, up 14.7% from a year earlier and falling 0.2% short of analysts’ expectations. It was a very good quarter for the company, with impressive gross margin and earnings beating analysts’ estimates.

Shake Shack was the weakest performer compared to analyst estimates of the entire group. The stock is down 16.9% since the earnings release and is currently trading at $85.9.

Is Now the Time to Buy Shake Shack? Get our full financial analysis for free here.

Best Q1: Wingstop (NASDAQ:WING)

A passion project of two Texas wing enthusiasts, Wingstop (NASDAQ: WING) is a popular fast food restaurant chain known for its flavorful, crispy chicken wings offered in a variety of sauces and seasonings.

Wingstop reported revenue of $145.8 million, up 34.1% from a year earlier and beating analysts’ expectations by 7.2%. It was a stellar quarter for the company, with an impressive beat on analysts’ gross margin estimates and a solid beat on analysts’ earnings estimates.

Wingstop beat analysts’ expectations and posted the fastest revenue growth among its peers. The stock is up 8.8% since the earnings release and is currently trading at $418.51.

Is it time to buy Wingstop? Access our full financial analysis here, it’s free.

Soft Green (NYSE:SG)

Founded in 2007 by three Georgetown University alumni, Sweetgreen (NYSE: SG) is a fast-casual restaurant chain known for its healthy salads and bowls.

Sweetgreen reported revenue of $157.9 million, up 26.2% from the prior year and beating analysts’ expectations by 3.9%. This was a strong quarter for the company, with an impressive beat on analysts’ gross margin estimates and full-year revenue guidance beating analysts’ expectations.

Sweetgreen delivered the group’s biggest annual forecast increase. The stock is up 20.5% since the earnings release and is currently trading at $28.39.

Read our full analysis of Sweetgreen’s results here.

Noodles (NASDAQ:NDLS)

Featuring pasta, mac and cheese, pad Thai and more, Noodles & Company (NASDAQ: NDLS) is a casual dining restaurant chain that serves all kinds of noodles from around the world.

Noodles reported revenue of $121.4 million, down 3.7% from a year earlier, in line with analysts’ expectations. It was a strong quarter for the company, with impressive gross margin and earnings beating analysts’ estimates.

Noodles issued the weakest full-year guidance among its peers. The stock is down 11.8% since the earnings release and is currently trading at $1.54.

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

Potbelly (NASDAQ:PBPB)

With a unique origin story where the company started as an antique store, Potbelly (NASDAQ: PBPB) is today a chain known for its grilled sandwiches.

Potbelly reported revenue of $111.2 million, down 6% from a year earlier and beating analysts’ expectations by 1.5%. It was a stellar quarter for the company, with the result significantly above analysts’ estimates.

Potbelly posted the slowest revenue growth among its peers. The stock is down 22.1% since the earnings release and is currently trading at $7.73.

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

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