Let’s dig into the relative performance of CAVA (NYSE: CAVA) and its peers as we unravel the now-completed Q2 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 8 modern fast food stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 1.5%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.7% since the latest earnings results.
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 $280.6 million, up 20.2% year on year. This print fell short of analysts’ expectations by 1.8%. Overall, it was a slower quarter for the company with a significant miss of analysts’ same-store sales estimates and full-year EBITDA guidance missing analysts’ expectations.
“During the second quarter of 2025, we continued to grow market share and firmly establish our category-defining leadership position,” said Brett Schulman, Co-Founder and CEO.
CAVA scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 32.4% since reporting and currently trades at $62.59.
Is now the time to buy CAVA? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $356.5 million, up 12.6% year on year, outperforming analysts’ expectations by 0.9%. The business had a strong quarter with an impressive beat of analysts’ EBITDA and EPS estimates.
Shake Shack pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 32.4% since reporting. It currently trades at $95.25.
Is now the time to buy Shake Shack? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $126.4 million, flat year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Noodles delivered the highest full-year guidance raise but had the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 40.6% since the results and currently trades at $0.60.
Read our full analysis of Noodles’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 $3.06 billion, up 3% year on year. This number missed analysts’ expectations by 1.5%. Overall, it was a slower quarter as it also logged a slight miss of analysts’ same-store sales estimates.
The stock is down 25.5% since reporting and currently trades at $39.35.
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 $174.3 million, up 12% year on year. This print beat analysts’ expectations by 0.5%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ same-store sales estimates but a significant miss of analysts’ EBITDA estimates.
The stock is down 14.1% since reporting and currently trades at $250.
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.
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