Let’s dig into the relative performance of Noodles (NASDAQ:NDLS) and its peers as we unravel the now-completed Q3 modern fast food earnings season.

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.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.9% since the latest earnings results.

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. This print fell short of analysts’ expectations by 2.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Noodles delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 33.5% since reporting and currently trades at $0.80.

Read our full report on Noodles 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 estimates and an impressive beat of analysts’ EBITDA estimates.

Potbelly achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 14.1% since reporting. It currently trades at $9.41.

Is now the time to buy Potbelly? Access our full analysis of the earnings results here, it’s free.

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 $162.5 million, up 38.8% year on year, exceeding analysts’ expectations by 1.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 12.8% since the results and currently trades at $322.01.

Read our full analysis of Wingstop’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 $173.4 million, up 13% year on year. This print missed analysts’ expectations by 1.2%. Overall, it was a slower quarter as it also produced a miss of analysts’ EBITDA estimates and full-year EBITDA guidance missing analysts’ expectations.

Sweetgreen scored the highest full-year guidance raise among its peers. The stock is down 19.9% since reporting and currently trades at $33.83.

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 $2.79 billion, up 13% year on year. This print lagged analysts' expectations by 0.9%. Aside from that, it was a mixed quarter as it also recorded a narrow beat of analysts’ EBITDA estimates but same-store sales in line with analysts’ estimates.

The stock is down 3.3% since reporting and currently trades at $58.51.

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

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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