We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Noodles & Company (NDLS) Q4 Earnings Meet, Revenues Top
Read MoreHide Full Article
Noodles & Company (NDLS - Free Report) reported fiscal fourth-quarter 2022 results, wherein earnings came in line with the Zacks Consensus Estimate while revenues surpassed. For the third straight quarter, NDLS’ revenues surpassed the Zacks Consensus Estimate. However, following the results, the company’s shares declined 2.5% year over year.
Adjusted earnings of 3 cents per share came in line with the Zacks Consensus Estimate. In the prior-year quarter, the company had reported an adjusted loss per share of 5 cents.
Meanwhile, revenues of $136.5 million beat the Zacks Consensus Estimate of $136 million and increased 18.9% year over year. The upside was primarily driven by an increase in restaurant revenues.
Let’s delve deeper into the numbers.
Noodles & Company Price, Consensus and EPS Surprise
Noodles & Company’s system-wide comps increased 8.7% compared with a gain of 2.1% in third-quarter 2022. Company-owned comps increased 10.2% compared with a gain of 3.4% in the third quarter. Franchise-restaurant comps increased 1.3% against a loss of 3.8% in the third quarter.
Comps in the quarter were favored due to continued momentum across all sales channels and increase in menu pricing.
Costs & Margins
Total costs and expenses increased 13% due to rise in cost of sales, labor expenses and other restaurant operating costs.
Restaurant contribution margin was 15.2% compared with 12.4% in the prior-year quarter.
Balance Sheet
Total current assets as of Jan 3, amounted to roughly $21.6 million, down from $22.6 million as on Dec 28, 2021. Long-term debt in the quarter amounted to $46.1 million, up from $18.9 million in the prior-year quarter.
Q1 & 2023 Outlook
For the first-quarter fiscal 2023, the company expects revenues in the range of $125-$128 million compared with $112.6 million reported in the prior-year quarter. Restaurant contribution margin is projected in the range of 12.5-12.8%. Comparable restaurant sales is expected to be in the high single digits.
The company expects adjusted earnings per share to be between 10 cents and 20 cents. The Zacks Consensus Estimate is pegged at 40 cents. Restaurant contribution margin is expected in the range of 16-17%.
Capital expenditure are anticipated to be between $53 million and $58 million. The company expects adjusted EBITDA in the range of $45-$50 million.
Some better-ranked stocks in the Zacks Retail – Restaurants industry are Chuy's Holdings, Inc. (CHUY - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Brinker International, Inc. (EAT - Free Report) .
Chuy’s Holdings currently sports a Zacks Rank #1. CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of the company have increased 26.4% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggest growth of 10.8% and 16.1%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 11.6%. Shares of the company have increased 9.8% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggest growth of 8.1% and 4.2%, respectively, from the year-ago period’s levels.
Brinker carries a Zacks Rank #2. EAT has a long-term earnings growth rate of 7.1%. The stock has gained 8.4% in the past year.
The Zacks Consensus Estimate for Brinker’s 2024 sales and EPS suggest growth of 3.9% and 36.5%, respectively, from the year-ago period’s reported levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Noodles & Company (NDLS) Q4 Earnings Meet, Revenues Top
Noodles & Company (NDLS - Free Report) reported fiscal fourth-quarter 2022 results, wherein earnings came in line with the Zacks Consensus Estimate while revenues surpassed. For the third straight quarter, NDLS’ revenues surpassed the Zacks Consensus Estimate. However, following the results, the company’s shares declined 2.5% year over year.
Adjusted earnings of 3 cents per share came in line with the Zacks Consensus Estimate. In the prior-year quarter, the company had reported an adjusted loss per share of 5 cents.
Meanwhile, revenues of $136.5 million beat the Zacks Consensus Estimate of $136 million and increased 18.9% year over year. The upside was primarily driven by an increase in restaurant revenues.
Let’s delve deeper into the numbers.
Noodles & Company Price, Consensus and EPS Surprise
Noodles & Company price-consensus-eps-surprise-chart | Noodles & Company Quote
Comps Discussion
Noodles & Company’s system-wide comps increased 8.7% compared with a gain of 2.1% in third-quarter 2022. Company-owned comps increased 10.2% compared with a gain of 3.4% in the third quarter. Franchise-restaurant comps increased 1.3% against a loss of 3.8% in the third quarter.
Comps in the quarter were favored due to continued momentum across all sales channels and increase in menu pricing.
Costs & Margins
Total costs and expenses increased 13% due to rise in cost of sales, labor expenses and other restaurant operating costs.
Restaurant contribution margin was 15.2% compared with 12.4% in the prior-year quarter.
Balance Sheet
Total current assets as of Jan 3, amounted to roughly $21.6 million, down from $22.6 million as on Dec 28, 2021. Long-term debt in the quarter amounted to $46.1 million, up from $18.9 million in the prior-year quarter.
Q1 & 2023 Outlook
For the first-quarter fiscal 2023, the company expects revenues in the range of $125-$128 million compared with $112.6 million reported in the prior-year quarter. Restaurant contribution margin is projected in the range of 12.5-12.8%. Comparable restaurant sales is expected to be in the high single digits.
The company expects adjusted earnings per share to be between 10 cents and 20 cents. The Zacks Consensus Estimate is pegged at 40 cents. Restaurant contribution margin is expected in the range of 16-17%.
Capital expenditure are anticipated to be between $53 million and $58 million. The company expects adjusted EBITDA in the range of $45-$50 million.
Zacks Rank & Key Picks
Noodles & Company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Retail – Restaurants industry are Chuy's Holdings, Inc. (CHUY - Free Report) , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Brinker International, Inc. (EAT - Free Report) .
Chuy’s Holdings currently sports a Zacks Rank #1. CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of the company have increased 26.4% in the past year.
The Zacks Consensus Estimate for Chuy’s Holdings’ 2023 sales and EPS suggest growth of 10.8% and 16.1%, respectively, from the corresponding year-ago period’s levels.
Arcos Dorados carries a Zacks Rank #2 (Buy). ARCO has a long-term earnings growth rate of 11.6%. Shares of the company have increased 9.8% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggest growth of 8.1% and 4.2%, respectively, from the year-ago period’s levels.
Brinker carries a Zacks Rank #2. EAT has a long-term earnings growth rate of 7.1%. The stock has gained 8.4% in the past year.
The Zacks Consensus Estimate for Brinker’s 2024 sales and EPS suggest growth of 3.9% and 36.5%, respectively, from the year-ago period’s reported levels.