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), DND Group Partner to Expand in Oregon
Read MoreHide Full Article
With the aim of further growth in the Pacific Northwest market, Noodles & Company (NDLS - Free Report) entered into a multi-unit franchise agreement with DND Group Inc. This agreement encompasses the immediate acquisition of six restaurant locations and the opening of a total of 10 new restaurants in the Portland, OR area.
The franchise agreement for the six restaurant locations is an exclusive development agreement in a few of the most populous cities in Oregon, comprising Portland, Eugene, Bend and Yakima-Kennewick-Pasco. The first location is slated to open in 2025.
Leveraging the remarkable history of exceptional operations of the DND Group, NDLS is well-positioned to expand its presence throughout the United States.
Shares of NDLS lost 7.8% during the trading hours but grew 3.2% in the after-hours trading session on Apr 17.
Expansion Initiatives Bode Well
Noodles & Company’s primary growth strategy focuses on expansion through new restaurant openings. The company continues to expand its presence across the United States through franchise agreements, specially in southern and southeastern markets. The primary goal of NDLS in 2024 is to grow its franchise presence mainly in certain markets, including Alabama, Florida, Georgia, Texas and Oklahoma.
During fiscal 2023, NDLS opened 18 company-owned restaurants. As of Jan 2, 2024, the company had 470 restaurants system-wide, comprising 380 company-owned restaurants and 90 franchise restaurants.
For fiscal 2024, the company expects to open 10-12 company-owned restaurants and up to three franchise-owned restaurants.
Price Performance
Shares of this national fast-casual restaurant chain have dwindled 60.3% in the year-to-date period compared with the Retail - Restaurants industry’s 1.5% decline. The decrease in comparable restaurant sales due to lower guest traffic has been hurting the company’s performance. Also, increased costs and expenses are added concerns.
Image Source: Zacks Investment Research
Nonetheless, Noodles & Company’s expansion initiatives, digital capabilities and focus on menu transformation are likely to aid in kickstarting its growth momentum. For fiscal 2024, the company expects comparable restaurant sales growth to range between flat and 3% growth year over year.
Zacks Rank & Key Picks
Noodles & Company carries a Zacks Rank #5 (Strong Sell).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
ANF has a trailing four-quarter earnings surprise of 715.6%, on average. The stock has surged 360% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) suggests growth of 5.6% and 19.1%, respectively, from the year-ago period’s levels.
Burlington Stores, Inc. (BURL - Free Report) currently sports a Zacks Rank of 1. BURL has a trailing four-quarter earnings surprise of 10.1%, on average. The stock has dwindled 4.4% in the past year.
The Zacks Consensus Estimate for BURL’s fiscal 2024 sales and EPS indicates a 10.2% and a 22.3% rise, respectively, from the year-ago period’s levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. GPS has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has hiked 119.5% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS suggests a decline of 0.3% and 4.9%, respectively, from the year-ago period’s levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Noodles & Company (NDLS), DND Group Partner to Expand in Oregon
With the aim of further growth in the Pacific Northwest market, Noodles & Company (NDLS - Free Report) entered into a multi-unit franchise agreement with DND Group Inc. This agreement encompasses the immediate acquisition of six restaurant locations and the opening of a total of 10 new restaurants in the Portland, OR area.
The franchise agreement for the six restaurant locations is an exclusive development agreement in a few of the most populous cities in Oregon, comprising Portland, Eugene, Bend and Yakima-Kennewick-Pasco. The first location is slated to open in 2025.
Leveraging the remarkable history of exceptional operations of the DND Group, NDLS is well-positioned to expand its presence throughout the United States.
Shares of NDLS lost 7.8% during the trading hours but grew 3.2% in the after-hours trading session on Apr 17.
Expansion Initiatives Bode Well
Noodles & Company’s primary growth strategy focuses on expansion through new restaurant openings. The company continues to expand its presence across the United States through franchise agreements, specially in southern and southeastern markets. The primary goal of NDLS in 2024 is to grow its franchise presence mainly in certain markets, including Alabama, Florida, Georgia, Texas and Oklahoma.
During fiscal 2023, NDLS opened 18 company-owned restaurants. As of Jan 2, 2024, the company had 470 restaurants system-wide, comprising 380 company-owned restaurants and 90 franchise restaurants.
For fiscal 2024, the company expects to open 10-12 company-owned restaurants and up to three franchise-owned restaurants.
Price Performance
Shares of this national fast-casual restaurant chain have dwindled 60.3% in the year-to-date period compared with the Retail - Restaurants industry’s 1.5% decline. The decrease in comparable restaurant sales due to lower guest traffic has been hurting the company’s performance. Also, increased costs and expenses are added concerns.
Image Source: Zacks Investment Research
Nonetheless, Noodles & Company’s expansion initiatives, digital capabilities and focus on menu transformation are likely to aid in kickstarting its growth momentum. For fiscal 2024, the company expects comparable restaurant sales growth to range between flat and 3% growth year over year.
Zacks Rank & Key Picks
Noodles & Company carries a Zacks Rank #5 (Strong Sell).
Here are some better-ranked stocks from the Zacks Retail-Wholesale sector.
Abercrombie & Fitch Co. (ANF - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
ANF has a trailing four-quarter earnings surprise of 715.6%, on average. The stock has surged 360% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) suggests growth of 5.6% and 19.1%, respectively, from the year-ago period’s levels.
Burlington Stores, Inc. (BURL - Free Report) currently sports a Zacks Rank of 1. BURL has a trailing four-quarter earnings surprise of 10.1%, on average. The stock has dwindled 4.4% in the past year.
The Zacks Consensus Estimate for BURL’s fiscal 2024 sales and EPS indicates a 10.2% and a 22.3% rise, respectively, from the year-ago period’s levels.
The Gap, Inc. (GPS - Free Report) currently sports a Zacks Rank of 1. GPS has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has hiked 119.5% in the past year.
The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS suggests a decline of 0.3% and 4.9%, respectively, from the year-ago period’s levels.