In This Article:
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)
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 $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.
Is now the time to buy Sweetgreen? Access our full analysis of the earnings results here, it’s free.
Best Q3: Potbelly (NASDAQ:PBPB)
With a unique origin story where the company actually started as an antique shop, Potbelly (NASDAQ:PBPB) today is a chain known for its toasty sandwiches.
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.
Is now the time to buy Potbelly? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: 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 $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.