Modern Fast Food Q1 Results: Wingstop (NASDAQ: WING) Simply the Best
As the first quarter earnings season comes to a close, let’s take a look at this quarter’s best and worst results in the modern fast food industry, including Wingstop (NASDAQ: WING) and its peers.
Modern fast food is a relatively newer category that represents a happy medium between traditional fast food and table service restaurants. These establishments offer an expanded menu selection at prices above traditional fast food options, often incorporating fresher, cleaner ingredients to serve quality-conscious customers. These restaurants capitalize on the perception that your drive-thru burger and fries restaurant is detrimental to your health due to substandard ingredients.
The 6 modern fast food stocks we follow had a very strong first quarter; on average, revenues beat analysts’ consensus estimates by 2.3%. Valuation multiples for many growth stocks have not yet returned to their highs of early 2021, but the market was optimistic in late 2023 due to slowing inflation. The start of 2024 has been a different story, as mixed signals have led to market volatility, but modern fast food stocks have shown resilience, with prices up 8.8% on average since the previous results.
Best Q1: Wingstop (NASDAQ: WING)
A passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ: WING) is a popular fast food chain known for its flavorful, crispy chicken wings that come in a variety of sauces and seasonings.
Wingstop reported revenue of $145.8 million, up 34.1% year over year, beating analysts’ expectations of 7.2%. It was a stunning quarter for the company, with an impressive beating of analysts’ gross margin estimates and a solid beating of analysts’ earnings estimates.
“Our first fiscal quarter 2024 highlighted the momentum behind the Wingstop brand and the continued strength of our strategies, generating national same-store sales growth of 21.6%, driven almost entirely by transaction growth,” said Michael Skipworth, President and CEO.
Wingstop had the best result according to analyst estimates and the fastest revenue growth of the entire group. The stock is up 11.5% since the results and is currently trading at $429.22.
Find out why we think Wingstop is one of the best modern fast food stocks, our full report is free.
Pot Belly (NASDAQ:PBPB)
With a unique origin story where the company actually 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% year over year, outperforming analysts’ expectations of 1.5%. It was a stunning quarter for the company, with impressive results in terms of earnings and analyst gross margin estimates.
Potbelly had the slowest revenue growth among its peers. The stock is down 24.2% since the earnings release and is currently trading at $7.52.
Is now the time to buy Potbelly? Access our full earnings results analysis here, it’s free.
Slowest first quarter: Sweetgreen (NYSE: SG)
Founded in 2007 by three Georgetown University alumni, Sweetgreen (NYSE: SG) is a fast-casual chain known for its healthy salads and bowls.
Sweetgreen reported revenue of $157.9 million, up 26.2% year over year, beating analysts’ expectations of 3.9%. It was a strong quarter for the company, with it impressively beating analysts’ gross margin estimates and full-year revenue forecasts beating analysts’ expectations.
Sweetgreen achieved the group’s highest forecast increase for the full year. The stock is up 33.4% since the results and is currently trading at $31.44.
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 restaurant chain serving all kinds of noodles from around the world.
Noodles reported revenue of $121.4 million, down 3.7% year-over-year, in line with analysts’ expectations. It was a strong quarter for the company, with an impressive beating of analysts’ gross margin estimates and a solid beating of analysts’ earnings estimates.
Noodles recorded the weakest full-year forecast update among its peers. The stock is up 26.4% since the results and is currently trading at $2.2.
Read our full, actionable Noodles report here, it’s free.
Shake the Hut (NYSE: SHAK)
Started as a hot dog cart in New York’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% year over year, below analysts’ expectations of 0.2%. It was a very good quarter for the company, with an impressive beating of analysts’ gross margin estimates and a solid beating of analysts’ earnings estimates.
Shake Shack had the weakest performance relative to analyst estimates among its peers. The stock is down 12.1% since the earnings release and is currently trading at $90.81.
Read our full, actionable report on Shake Shack here, it’s free.
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