Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Sweetgreen (NYSE: SG) 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 7 modern fast food stocks we track reported a mixed Q1. As a group, revenues were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 9% on average 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 $166.3 million, up 5.4% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but full-year EBITDA guidance missing analysts’ expectations significantly.

Sweetgreen delivered the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 18.7% since reporting and currently trades at $14.78.

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

Best Q1: 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 $113.7 million, up 2.3% year on year, outperforming analysts’ expectations by 1.7%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Potbelly delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 21.4% since reporting. It currently trades at $10.36.

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

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 $320.9 million, up 10.5% year on year, falling short of analysts’ expectations by 2%. It was a softer quarter as it posted a miss of analysts’ same-store sales and EBITDA estimates.

Interestingly, the stock is up 34.7% since the results and currently trades at $118.25.

Read our full analysis of Shake Shack’s results here.

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 $2.88 billion, up 6.4% year on year. This number lagged analysts' expectations by 2.1%. It was a slower quarter as it also logged a miss of analysts’ same-store sales estimates.

Chipotle had the weakest performance against analyst estimates among its peers. The stock is up 6.4% since reporting and currently trades at $51.85.

Read our full, actionable report on Chipotle 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 $171.1 million, up 17.4% year on year. This print was in line with analysts’ expectations. Aside from that, it was a slower quarter as it produced a miss of analysts’ EBITDA estimates and a slight miss of analysts’ same-store sales estimates.

The stock is up 37.5% since reporting and currently trades at $317.

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

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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