Rising Volatility in Fast-Casual Stocks: Here are 2 Ways to Play It

Fast-casual stocks have been on a wild ride. The sector was once a high-growth favorite, with restaurant stocks surging on momentum-driven valuations that at times rivaled tech giants. Now, as investors scrutinize growth sustainability, volatility is front and center. Companies delivering strong results are rewarded, but even minor earnings misses are punishing stocks.

This pattern has played out across the food space—Wingstop plunged -24% despite double-digit revenue and EPS growth, Freshpet cratered -19% after missing expectations, and Sweetgreen has lost half its value in just months.

Meanwhile, Shake Shack’s latest report lifted its stock, showing that fast-casual still has legs when the numbers back it up.

The takeaway?

Massive moves are happening.

We’ve got two trade ideas that capitalize on these swings—one focused on an earnings-driven play, and one on a long-term turnaround.

Both ideas are built around forward looking interest from consumers — you can see it in detail on the chart below…

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