Looking back on modern fast food stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Shake Shack NYSE:SHAK 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 6 modern fast food stocks we track reported a mixed Q1. As a group, revenues were in line with analysts’ consensus estimates.
While some modern fast food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.4% since the latest earnings results.
Weakest 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 $366.7 million, up 14.3% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
The market seems disappointed with the results as the stock is down 41.5% since reporting and currently trades at $56.50.
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Best Q1: 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 $438.3 million, up 32.1% year on year, outperforming analysts’ expectations by 4.7%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA and same-store sales estimates.
CAVA achieved the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 7.6% since reporting. It currently trades at $84.03.
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 $183.7 million, up 7.4% year on year, falling short of analysts’ expectations by 2.4%. It was a softer quarter as it posted a significant miss of analysts’ same-store sales and EBITDA estimates.
Wingstop delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 5.1% since the results and currently trades at $164.14.
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 $3.09 billion, up 7.4% year on year. This number topped analysts’ expectations by 0.5%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ same-store sales and EBITDA estimates.
The stock is up 1.3% since reporting and currently trades at $33.41.
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 $182.6 million, up 3.5% year on year. This result met analysts’ expectations. It was a strong quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ same-store sales estimates.
The stock is down 17.5% since reporting and currently trades at $4.72.
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