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 Wingstop (NASDAQ: WING) 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.

Thankfully, share prices of the companies have been resilient as they are up 10% on average since the latest earnings results.

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, but overall, it was a slower quarter for the company with a miss of analysts’ EBITDA estimates and a slight miss of analysts’ same-store sales estimates.

"Despite the challenging and unpredictable macro-environment, our first quarter results demonstrate the staying power of our strategies and resiliency in our model," said Michael Skipworth, President & Chief Executive Officer.

The stock is up 55.4% since reporting and currently trades at $358.20.

Is now the time to buy Wingstop? 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 pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 29.3% since reporting. It currently trades at $11.04.

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

Slowest Q1: 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 46% since the results and currently trades at $128.16.

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 recorded a miss of analysts’ same-store sales estimates.

Chipotle had the weakest performance against analyst estimates among its peers. The stock is up 4.2% since reporting and currently trades at $50.80.

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

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 $123.8 million, up 2% year on year. This result was in line with analysts’ expectations. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ EBITDA and EPS estimates.

Noodles delivered the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 16.7% since reporting and currently trades at $0.84.

Read our full, actionable report on Noodles 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.

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