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What's in Store for Noodles & Company (NDLS) in Q4 Earnings?
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Noodles & Company (NDLS - Free Report) is scheduled to release fourth-quarter 2023 results on Mar 7. In the last reported quarter, the company reported earnings per share (EPS) of 4 cents, beating the Zacks Consensus Estimate of breakeven earnings.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter loss per share is pegged at 1 cent. In the prior-year quarter, NDLS reported EPS of 3 cents.
For revenues, the consensus mark is pegged at $125 million. The metric suggests a decline of 8.4% from the year-ago quarter’s figure.
Let’s analyze the factors likely to impact the company’s performance in the quarter to be reported.
Factors at Play
NDLS’ fourth-quarter top line is likely to reflect a deceleration in comparable restaurant sales owing to reduced winter and holiday traffic. The company expects fourth-quarter comparable restaurant sales to decline in the mid-single-digit range.
Dismal Contributions from Restaurant and Franchising royalties and fees are likely to be reflected in the fourth-quarter top line. The Zacks Consensus Estimates for fourth-quarter Restaurant revenues is pegged at $122 million, suggesting a decline from $133 million reported in the prior-year quarter. The consensus mark for Franchising royalties and fees revenues is pegged at $2.6 million, calling for a decline from $3 million reported in the prior-year quarter.
Inflationary pressures including food, labor, energy costs and construction materials are likely to have negatively impacted the bottom line in the to-be-reported quarter. The company anticipates fourth-quarter adjusted EBITDA to be in the range of $8-$12 million. It expects fourth-quarter adjusted EPS to be between negative 5 cents and positive 3 cents.
Emphasis on sales-driving initiatives, including price optimization, improved guest engagement analytics, leveraging the introduction of Chicken Parmesan, and menu optimization and brand messaging, are likely to have aided the company’s performance in the fourth quarter.
What Our Model Says
Our proven model does not predict an earnings beat for Noodles & Company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that's not the case here.
Earnings ESP: Noodles & Company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3.
Stocks Poised to Beat Earnings
Here are some companies in the Zacks Retail-Wholesale sector, which according to our model, have the right combination of elements to post an earnings beat.
GPS’ earnings for the to-be-reported quarter are expected to surge 126.7%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 137.9%.
DICK'S Sporting Goods, Inc. (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2.
DKS’ earnings for the to-be-reported quarter are expected to increase 13.7%. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the negative average surprise being 0.04%.
Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +1.83% and a Zacks Rank of 3.
BURL’s earnings topped the consensus mark in two of the last four quarters and missed on the remaining two occasions, the average surprise being 9.4%. Earnings for the to-be-reported quarter are expected to increase 10.8% year over year.
Image: Bigstock
What's in Store for Noodles & Company (NDLS) in Q4 Earnings?
Noodles & Company (NDLS - Free Report) is scheduled to release fourth-quarter 2023 results on Mar 7. In the last reported quarter, the company reported earnings per share (EPS) of 4 cents, beating the Zacks Consensus Estimate of breakeven earnings.
How Are Estimates Placed?
The Zacks Consensus Estimate for fourth-quarter loss per share is pegged at 1 cent. In the prior-year quarter, NDLS reported EPS of 3 cents.
For revenues, the consensus mark is pegged at $125 million. The metric suggests a decline of 8.4% from the year-ago quarter’s figure.
Noodles & Company Price and EPS Surprise
Noodles & Company price-eps-surprise | Noodles & Company Quote
Let’s analyze the factors likely to impact the company’s performance in the quarter to be reported.
Factors at Play
NDLS’ fourth-quarter top line is likely to reflect a deceleration in comparable restaurant sales owing to reduced winter and holiday traffic. The company expects fourth-quarter comparable restaurant sales to decline in the mid-single-digit range.
Dismal Contributions from Restaurant and Franchising royalties and fees are likely to be reflected in the fourth-quarter top line. The Zacks Consensus Estimates for fourth-quarter Restaurant revenues is pegged at $122 million, suggesting a decline from $133 million reported in the prior-year quarter. The consensus mark for Franchising royalties and fees revenues is pegged at $2.6 million, calling for a decline from $3 million reported in the prior-year quarter.
Inflationary pressures including food, labor, energy costs and construction materials are likely to have negatively impacted the bottom line in the to-be-reported quarter. The company anticipates fourth-quarter adjusted EBITDA to be in the range of $8-$12 million. It expects fourth-quarter adjusted EPS to be between negative 5 cents and positive 3 cents.
Emphasis on sales-driving initiatives, including price optimization, improved guest engagement analytics, leveraging the introduction of Chicken Parmesan, and menu optimization and brand messaging, are likely to have aided the company’s performance in the fourth quarter.
What Our Model Says
Our proven model does not predict an earnings beat for Noodles & Company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that's not the case here.
Earnings ESP: Noodles & Company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3.
Stocks Poised to Beat Earnings
Here are some companies in the Zacks Retail-Wholesale sector, which according to our model, have the right combination of elements to post an earnings beat.
The Gap, Inc. (GPS - Free Report) currently has an Earnings ESP of +54.71% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GPS’ earnings for the to-be-reported quarter are expected to surge 126.7%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 137.9%.
DICK'S Sporting Goods, Inc. (DKS - Free Report) currently has an Earnings ESP of +2.03% and a Zacks Rank of 2.
DKS’ earnings for the to-be-reported quarter are expected to increase 13.7%. The company reported better-than-expected earnings in three of the trailing four quarters and missed on the remaining one occasion, the negative average surprise being 0.04%.
Burlington Stores, Inc. (BURL - Free Report) currently has an Earnings ESP of +1.83% and a Zacks Rank of 3.
BURL’s earnings topped the consensus mark in two of the last four quarters and missed on the remaining two occasions, the average surprise being 9.4%. Earnings for the to-be-reported quarter are expected to increase 10.8% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.