Noodles comp sales slightly worse than originally reported

Noodles & Company (NDLS) corrects an earlier statement of preliminary Q4 results, expecting system-wide comparable store sales growth of 3.9%, not 4.3%. Comparable sales for company-owned restaurants are expected to be 4.3% higher, while those for franchised restaurants are expected to gain 1.5%.

Other figures are the same: Total revenue is expected to be up 17.4% to $91.5M, and 12 new restaurants opened in Q4 - 8 company-owned, and 4 franchised.

The numbers are less than hoped (the stock fell 5.3% in the regular session), and CEO Kevin Ruddy mentions "significant weather headwinds."

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Comments (1)
  • howard.hyman
    , contributor
    Comments (32) | Send Message
    This certainly is not helping the stock in the short term. The herd always likes it when the results beat the projections. And with this correction, the mood will turn even more negative. But looking at the stock valuation when comparing revenue to market cap, this stock has very solid long term growth potential. There's no question that future revenue will continue to grow and most likely will grow fairly rapidly - assuming no more "significant weather headwinds". In my opinion, Noodles can eventually grow to the size Chipotle is right now. And the gross margins are where they need to be.
    13 Jan 2014, 06:15 PM Reply Like
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