Back to top

Image: Bigstock

Noodles (NDLS) Launches Second Ghost Kitchen in San Jose

Read MoreHide Full Article

Noodles & Company (NDLS - Free Report) recently announced the opening of its second ghost kitchen in San Jose. During May 2021, the company debuted its first ghost kitchen test in Chicago's Humboldt Park.

The addition of another ghost kitchen will enable brand expansion for the company and it is the most cost-efficient way to expand in new and existing markets through digital platforms. Central San Jose-based Noodles’ ghost kitchen will provide customers with many convenient ways to order noodle items through the Noodle reward app or through third-party delivery persons. Also, the company facilitates Noodles rewards member with various perks and offers.

Moreover, the ghost kitchen will increase the company’s off-premise sales by reaching a far ended customer base. More number of guests will be able to avail noodle dishes in easier and beneficial ways.

With respect to this, chief marketing officer of Noodles, Stacey Pool has stated, “San Jose is an emerging market for us, and with this ghost kitchen test, we'll be able to gain valuable insights on market trends and guest dynamics in the region. We'll also be able to leverage these learnings for franchise opportunities in new markets, along with the expansion of our ghost kitchen concept.”

Share Performance

So far this year, shares of Noodles have gained 57.4% compared with the Zacks Retail - Restaurants industry’s 12.9% rise. The company is benefiting from its strong momentum and resiliency in business models. During second-quarter fiscal 2021, the company witnessed significant sales growth and strong margin expansion.

Zacks Investment Research
Image Source: Zacks Investment Research

Furthermore, the company’s digital sales and off premise capabilities are well positioned to mitigate market challenges and uncertainties as well as the potential impact of the Delta COVID-19 variant. During second-quarter fiscal 2021, digital sales grew 15% year over year and accounted for 56% of total revenues.

Currently, Noodles carries a Zacks Rank #3 (Hold).

3 Retail - Restaurants Stocks Worth Buying

Some better-ranked stocks in the same industry include The Wendy's Company (WEN - Free Report) , Yum! Brands, Inc. (YUM - Free Report) and Jack in the Box Inc. (JACK - Free Report) , each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wendy's earnings for 2021 are expected to rise 42.1%.

Yum! Brands has a three-five-year earnings per share growth rate of 12%.

Jack in the Box has a trailing four-quarter earnings surprise of 26.4%, on average.

Published in