Noodles & Company Q4 Earnings Exceed Expectations

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 1 hour ago

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NDLS-7.48%

Should l Buy NDLS?

Source: seekingalpha

Strong Earnings Report: Noodles & Company reported a Q4 non-GAAP EPS of -$0.43, beating expectations by $0.29, indicating an improvement in profitability despite still being negative.
Revenue Growth: Q4 revenue reached $122.8 million, a 0.8% year-over-year increase, surpassing market expectations by $400,000, demonstrating the company's resilience in a competitive market.
Comparable Sales Growth: Comparable restaurant sales grew approximately 9.0%, reflecting successful strategies in customer attraction and retention, which are expected to drive future revenue growth.
2026 Outlook: The company anticipates full-year revenue between $478 million and $493 million, with restaurant contribution margins of 14.7% to 16.0%, indicating a positive outlook on cost control and profitability.

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About NDLS

Noodles & Company offers lunch and dinner within the fast-casual segment of the restaurant industry. The Company’s core offerings include noodle and pasta dishes, staples of various different cuisines. Its menu includes a variety of cooked-to-order dishes, including noodles and pasta, salads, soups and appetizers. It offers approximately 20 customizable dishes at its restaurants, taken to-go, or delivered to its customers. It operates approximately 460 restaurants in 31 states, which includes 369 company locations and 91 franchise locations. Its restaurants are typically between 2,000 and 2,600 square feet and are located in end-cap, in-line or free-standing locations across a variety of suburban, collegiate and urban markets. It is researching a smaller square footage restaurant prototype design. The Company's restaurants are located in Arizona, Colorado, Idaho, Illinois, Indiana, Maryland, North Carolina, Missouri, Minnesota and others.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Noodles & Company to Announce Q4 Earnings on March 25

23 hours agoseekingalpha

Earnings Announcement: Noodles & Company is set to release its Q4 earnings on March 25, with a consensus EPS estimate of -$0.72, reflecting a significant year-over-year decline of 380%, indicating substantial profitability challenges for the company.
Revenue Expectations: The anticipated revenue for Q4 is $122.4 million, representing a modest year-over-year increase of 0.5%, which, while slight, suggests the company is striving to maintain revenue levels in a highly competitive market.
Historical Performance Review: Over the past two years, Noodles & Company has only beaten EPS estimates 38% of the time and revenue estimates 25% of the time, highlighting ongoing challenges in profitability and revenue growth.
Investor Activity: Activist investor Galloway has increased his stake in Noodles & Company, indicating market interest in the company's future potential, which may prompt strategic adjustments despite the current financial underperformance.