Unpacking Q3 Earnings: Noodles (NASDAQ:NDLS) In The Context Of Other Modern Fast Food Stocks

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Unpacking Q3 Earnings: Noodles (NASDAQ:NDLS) In The Context Of Other Modern Fast Food Stocks

Let’s dig into the relative performance of Noodles (NASDAQ:NDLS) 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 6 modern fast food stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.9% since the latest earnings results.

Weakest Q3: 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 $122.8 million, down 4% year on year. This print fell short of analysts’ expectations by 2.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

Noodles Total Revenue
Noodles Total Revenue

Noodles delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 33.5% since reporting and currently trades at $0.80.

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

Best Q3: 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 $115.1 million, down 4.7% year on year, outperforming analysts’ expectations by 1.7%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Potbelly Total Revenue
Potbelly Total Revenue

Potbelly achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 14.1% since reporting. It currently trades at $9.41.

Is now the time to buy Potbelly? Access our full analysis of the earnings results 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.

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