Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Shake Shack (NYSE: SHAK) and the best and worst performers in the modern fast food industry.

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.

Luckily, modern fast food stocks have performed well with share prices up 16% on average since the latest earnings results.

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. This print fell short of analysts’ expectations by 2%. Overall, it was a softer quarter for the company with a miss of analysts’ same-store sales and EBITDA estimates.

Interestingly, the stock is up 61.7% since reporting and currently trades at $141.95.

Read our full report on Shake Shack 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 an impressive beat of analysts’ EPS estimates and a solid 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 48.6% since reporting. It currently trades at $12.68.

Is now the time to buy Potbelly? Access our full analysis of the earnings results 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 $2.88 billion, up 6.4% year on year, falling short of analysts’ expectations by 2.1%. It was a slower quarter as it posted a miss of analysts’ same-store sales estimates.

Chipotle delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 17.1% since the results and currently trades at $57.07.

Read our full analysis of Chipotle’s results here.

CAVA (NYSE: CAVA)

Starting from a single Washington, D.C. location, CAVA (NYSE: CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.

CAVA reported revenues of $331.8 million, up 28.1% year on year. This number topped analysts’ expectations by 1.2%. It was a strong quarter as it also put up a solid beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.

CAVA achieved the fastest revenue growth among its peers. The stock is down 12.8% since reporting and currently trades at $86.52.

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

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 surpassed analysts’ expectations by 0.9%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but full-year EBITDA guidance missing analysts’ expectations.

Sweetgreen had the weakest full-year guidance update among its peers. The stock is down 19.2% since reporting and currently trades at $14.69.

Read our full, actionable report on Sweetgreen 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 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.

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