Fast Food Stocks Q1 Review: Noodles (NASDAQ:NDLS) vs Peers, Potbelly (NASDAQ:PBPB) Leads the Way

Modern fast food stocks Q1 earnings review: Noodles (NASDAQ:NDLS) and peers reported mixed results, with revenues in line with analysts' consensus estimates. Noodles scored the highest full-year guidance raise but had the slowest revenue growth. Potbelly (NASDAQ:PBPB) reported revenues of $113.7 million, up 2.3% YoY, outperforming expectations and delivering the biggest analyst estimates beat. Shake Shack (NYSE:SHAK) reported revenues of $320.9 million, up 10.5% YoY, falling short of analysts' expectations.

In the first quarter of 2025, modern fast food stocks presented a mixed performance, with revenues largely in line with analysts' consensus estimates. Among the seven companies tracked, Noodles (NASDAQ:NDLS) and its peers reported varied results, offering insights into the sector's dynamics.

Noodles & Company (NASDAQ:NDLS), a casual restaurant chain known for its diverse noodle dishes, reported revenues of $123.8 million, a 2% year-over-year increase. While this figure met analysts' expectations, the company missed on EBITDA and EPS estimates, leading to a 23.5% stock decline since reporting, with the stock currently trading at $0.82 [1].

Potbelly (NASDAQ:PBPB), with its unique origin story and toasty sandwiches, stood out as the best performer. It reported revenues of $113.7 million, up 2.3% year-over-year, exceeding analysts' expectations by 1.7%. Potbelly delivered the biggest analyst estimates beat among its peers, with the stock up 23.5% since the results, currently trading at $10.54 [1].

Shake Shack (NYSE:SHAK), known for its burgers and milkshakes, reported revenues of $320.9 million, up 10.5% year-over-year. Despite this growth, it fell short of analysts' expectations by 2%, leading to a 41.9% stock increase since the results, with the stock currently trading at $124.50 [1].

CAVA (NYSE:CAVA), offering customizable Mediterranean-inspired dishes, reported revenues of $331.8 million, up 28.1% year-over-year, beating analysts' expectations by 1.2%. CAVA achieved the fastest revenue growth among its peers but saw a 24.9% stock decline since reporting, with the stock currently trading at $74.50 [1].

Chipotle (NYSE:CMG), known for its healthy, Mexican-inspired cuisine, reported revenues of $2.88 billion, up 6.4% year-over-year. This result lagged analysts' expectations by 2.1%, leading to a 5.3% stock increase since reporting, with the stock currently trading at $51.33 [1].

Overall, the sector's resilience is evident, with share prices up 6.3% on average since the latest earnings results. The market's reaction varied, with some stocks experiencing significant declines while others saw substantial gains. The results underscore the importance of individual company performance and the impact of analysts' estimates on stock prices.

References:
[1] https://stockstory.org/us/stocks/nasdaq/ndls/news/earnings/modern-fast-food-stocks-q1-in-review-noodles-nasdaqndls-vs-peers