Let’s dig into the relative performance of Sweetgreen (NYSE: SG) 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 7 modern fast food stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.9%.

While some modern fast food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.3% since the latest earnings results.

Weakest Q3: 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 $172.4 million, flat year on year. This print fell short of analysts’ expectations by 3.1%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

Sweetgreen delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 13.1% since reporting and currently trades at $5.43.

Read our full report on Sweetgreen here, it’s free for active Edge members.

Best Q3: 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 $367.4 million, up 15.9% year on year, outperforming analysts’ expectations by 1%. The business had a very strong quarter with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 4.6% since reporting. It currently trades at $93.99.

Is now the time to buy Shake Shack? Access our full analysis of the earnings results here, it’s free for active Edge members.

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 $175.7 million, up 8.1% year on year, falling short of analysts’ expectations by 5%. It was a softer quarter as it posted a significant miss of analysts’ same-store sales estimates and a significant miss of analysts’ revenue estimates.

Wingstop delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 11.1% since the results and currently trades at $238.50.

Read our full analysis of Wingstop’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 $3.00 billion, up 7.5% year on year. This print met analysts’ expectations. More broadly, it was a slower quarter as it recorded a miss of analysts’ EBITDA estimates and revenue in line with analysts’ estimates.

The stock is down 23.5% since reporting and currently trades at $30.44.

Read our full, actionable report on Chipotle here, it’s free for active Edge members.

Portillo's (NASDAQ: PTLO)

Begun as a Chicago hot dog stand in 1963, Portillo’s (NASDAQ: PTLO) is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.

Portillo's reported revenues of $181.4 million, up 1.8% year on year. This number lagged analysts' expectations by 0.7%. Aside from that, it was a strong quarter as it put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ same-store sales estimates.

The stock is down 9.5% since reporting and currently trades at $4.75.

Read our full, actionable report on Portillo's here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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