As Q4 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the modern fast food stocks, including Sweetgreen (NYSE:SG) 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 strong Q4; on average, revenues beat analyst consensus estimates by 1.6% while next quarter's revenue guidance was 2.8% above consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but modern fast food stocks held their ground better than others, with the share prices up 18.2% on average since the previous earnings results.

Sweetgreen (NYSE:SG)

Founded in 2007 by three Georgetown University alum, Sweetgreen (NYSE:SG) is a casual quick service chain known for its healthy salads and bowls.

Sweetgreen reported revenues of $153 million, up 29.1% year on year, in line with analyst expectations. It was a strong quarter for the company, with an impressive beat of analysts' gross margin estimates and revenue guidance for next quarter exceeding analysts' expectations.

“2023 was a strong year for Sweetgreen - we continued to demonstrate high growth, substantial operating leverage and executed on significant innovation across the business. In the fourth quarter, we expanded restaurant-level profit margins by 500 basis points in 2023 compared to 2022, and our guidance calls for Adjusted EBITDA profitability in 2024(2),” said Jonathan Neman, CEO and Co-Founder.

Sweetgreen scored the fastest revenue growth and highest full-year guidance raise of the whole group. The stock is up 90.1% since the results and currently trades at $24.26.

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

Best Q4: 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 $286.2 million, up 20% year on year, outperforming analyst expectations by 2.2%. It was a stunning quarter for the company: Shake Shack beat across the board on all key metrics from sale-store sales to revenue to profits to EPS. FCF even came in higher than expected and was positive rather than the loss projected by Wall Street analysts.

The stock is up 31.2% since the results and currently trades at $102.34.

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

Weakest Q4: 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 $124.3 million, down 8.9% year on year, falling short of analyst expectations by 0.8%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and a miss of analysts' earnings estimates.

Noodles had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. The stock is down 25.5% since the results and currently trades at $1.83.

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 $2.52 billion, up 15.4% year on year, surpassing analyst expectations by 1.1%. It was a very strong quarter for the company, with a decent beat of analysts' revenue estimates.

The stock is up 16.3% since the results and currently trades at $2,901.

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

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 $125.7 million, up 4.7% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' earnings estimates.

The stock is down 17.4% since the results and currently trades at $11.14.

Read our full, actionable report on Potbelly here, it's free.

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