Noodles & Company (NDLS) reported fourth-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines declined on a year-over-year basis.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Noodles & Company reported positive sales and traffic trends in early 2025, buoyed by the introduction of new menu items, promotional initiatives and strengthened third-party delivery momentum. In the first eight weeks of the first quarter of 2 ...

Noodles & Company, Inc. (NASDAQ:NDLS) Q4 2024 Earnings Conference Call March 6, 2025 4:30 PM ET Company Participants Michael Hynes - CFO Andrew Madsen - CEO & Director Conference Call Participants Andy Barish - Jefferies Jake Bartlett - Truist Securities Operator Good afternoon, and welcome to today's Noodles & Company's Fourth Quarter 2024 Earnings Conference Call. All participants are now in a listen-only mode. After the presenters' remarks, there will be a question and answer session. As a reminder, this ...

Core Insights - Noodles & Co. reported revenue of $121.77 million for the quarter ended December 2024, reflecting a year-over-year decline of 2.1% and an EPS of -$0.15, compared to -$0.07 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $123.34 million by 1.27%, and the EPS was also below the consensus estimate of -$0.13 by 15.38% [1] Financial Performance Metrics - Company-owned comparable restaurant sales were reported at 0.5%, matching the average estimate from two analysts [4] - Total restaurants system-wide at the end of the period stood at 463, slightly below the average estimate of 464 [4] - System-wide comparable restaurant sales were 0.8%, aligning with the average estimate of 0.8% [4] - Franchise comparable restaurant sales were reported at 1.9%, consistent with the average estimate from two analysts [4] - Revenue from franchising royalties and fees was $2.57 million, below the average estimate of $2.72 million, but showed a year-over-year increase of 2.9% [4] - Restaurant revenue was $119.20 million, falling short of the average estimate of $120.63 million, representing a year-over-year decline of 2.2% [4] Stock Performance - Noodles & Co. shares have returned -16.8% over the past month, compared to a -3.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

Financial Performance - Noodles & Co. reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.13, and compared to a loss of $0.07 per share a year ago, indicating a decline in performance [1] - The company posted revenues of $121.77 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.27%, and down from $124.32 million year-over-year [2] - Over the last four quarters, Noodles & Co. has surpassed consensus EPS estimates only two times and has not beaten consensus revenue estimates [2] Stock Performance - Noodles & Co. shares have increased approximately 131.5% since the beginning of the year, contrasting with a decline of -0.7% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $120.81 million, and for the current fiscal year, it is -$0.28 on revenues of $498.24 million [7] Earnings Outlook - The estimate revisions trend for Noodles & Co. is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3][4] Industry Context - The Retail - Restaurants industry, to which Noodles & Co. belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Dave & Buster's, is expected to report a quarterly earnings decline of -32% year-over-year, with revenues projected to decrease by 8.2% [9]

Financial Results - Noodles & Company reported sales results for the fiscal quarter ended December 31, 2024[5] - The press release detailing the financial results was issued on January 13, 2025[5] - The financial statements and exhibits related to the report are included in Exhibit 99.1[7] Company Information - The company is listed on the Nasdaq Global Select Market under the trading symbol NDLS[3] - The registrant is not classified as an emerging growth company[4] - The report was signed by Chief Financial Officer Mike Hynes on January 13, 2025[10]

Core Insights - Noodles & Company reported financial results for Q4 and fiscal year 2024, showing a net loss and a decrease in total revenue compared to the previous year [1][7][6] - The company anticipates total revenue for fiscal year 2025 to be between $503 million and $512 million, with expectations of mid-single digit comparable restaurant sales growth [6][4] Financial Performance - Q4 2024 total revenue decreased by 2.0% to $121.8 million from $124.3 million in Q4 2023 [7] - Comparable restaurant sales increased by 0.8% system-wide, with a 0.5% increase for company-owned restaurants and a 1.9% increase for franchise restaurants [7] - The net loss for Q4 2024 was $9.7 million, or $0.21 loss per diluted share, compared to a net loss of $6.1 million, or $0.14 loss per diluted share in Q4 2023 [7] - For the fiscal year 2024, total revenue decreased by 2.0% to $493.3 million from $503.4 million in fiscal year 2023 [7] - The net loss for the fiscal year 2024 was $36.2 million, or $0.80 loss per diluted share, compared to a net loss of $9.9 million, or $0.21 loss per diluted share in fiscal year 2023 [7] Operational Highlights - The company closed six company-owned restaurants in Q4 2024, while one franchise restaurant opened and three franchise restaurants closed [7] - The company had 463 restaurants at the end of 2024, comprised of 371 company-owned and 92 franchise restaurants [7] - The CEO noted that sales improvements observed in Q4 2024 have continued into Q1 2025, with positive traffic and comparable restaurant sales growth over 3% [4] Strategic Initiatives - Noodles & Company plans to launch a significant menu transformation with the addition of nine new dishes and increased marketing investment [4] - The company is focused on five strategic priorities aimed at reigniting profitable growth [4] Liquidity Position - As of December 31, 2024, the company had available cash and cash equivalents of $1.1 million and outstanding debt of $103.0 million [5] - The company had $19.0 million available for future borrowings under its revolving credit facility [5]

Core Viewpoint - Noodles & Company (NDLS) is expected to report a loss in the fourth quarter of 2024, with revenues anticipated to decline year over year due to a challenging consumer environment and increased competition [3][4]. Financial Performance Expectations - The Zacks Consensus Estimate for NDLS's fourth-quarter loss per share is 13 cents, compared to a loss of 7 cents in the same quarter last year [3]. - Revenue expectations for the fourth quarter are set at $123.3 million, reflecting a slight decline of 0.8% from the previous year's figure [3]. - Restaurant revenues are projected at $121 million, down from $122 million reported in the prior-year quarter [5]. Factors Influencing Performance - The decline in revenues is attributed to industry-wide volatility and a weak consumer environment, leading to intense competition and higher discounting [4]. - A deceleration in comparable restaurant sales is expected due to reduced winter and holiday traffic [5]. - Despite these challenges, initiatives such as operational improvements, menu innovation, and strategic investments in loyalty programs and digital media are likely to support performance [6]. Additional Revenue Insights - Franchising royalties and fee revenues are estimated at $2.7 million, an increase from $2.5 million in the prior-year quarter [7]. - Inflationary pressures, including rising costs for food, labor, energy, and construction materials, are anticipated to negatively impact the bottom line [7]. Earnings Prediction Model - The earnings prediction model indicates that NDLS is not expected to achieve an earnings beat this quarter, with an Earnings ESP of 0.00% [8]. - NDLS holds a Zacks Rank of 2 (Buy), suggesting a relatively favorable outlook compared to other stocks [9].

Company Overview - Noodles & Company has appointed Joe Christina as President and Chief Operating Officer, bringing over three decades of leadership experience in the restaurant industry [1][2] - The company operates over 460 restaurants and employs around 7,000 team members, focusing on globally inspired flavors and comfort dishes [6] Leadership and Strategy - Joe Christina is recognized for his operational expertise and a strong track record in driving growth and innovation within the restaurant sector [2] - His previous roles include significant positions at Burger King, Church's Chicken, and Tijuana Flats, where he achieved notable revenue and EBITDA growth [3][4] - Christina aims to enhance operational excellence, menu innovation, and expand catering services to unlock new growth opportunities for Noodles & Company [3] Transition and Future Plans - Christina succeeds Brad West, who retired in 2024 after eight years as COO, and will assist in the transition until June 2025 [5] - The company plans to introduce a comprehensive new menu in the first half of the year, which Christina will oversee [2]

Core Viewpoint - Noodles & Company will host a conference call to discuss its fourth quarter and full year 2024 financial results on March 6, 2025, at 4:30 p.m. ET [1] Group 1: Conference Call Details - The conference call can be accessed live by dialing 201-389-0920, with a replay available until March 20, 2025, by dialing 412-317-6671 using passcode 13750888 [2] - The conference call will also be webcast live on the company's corporate website, with an archive available shortly after the call [3] Group 2: Company Overview - Noodles & Company has been serving a variety of noodle dishes since 1995, with over 460 restaurants and 7,000 team members dedicated to customer satisfaction [4]

Core Viewpoint - Momentum investing focuses on buying stocks that are trending upwards rather than undervalued stocks, with the belief that one can achieve higher returns in a shorter time frame [1] Group 1: Momentum Investing Strategy - Momentum investing is characterized by the approach of "buying high and selling higher," contrasting with the traditional "buy low and sell high" strategy [1] - Identifying the right entry point for momentum stocks can be challenging, as these stocks may lose momentum if their valuations exceed future growth potential [1] Group 2: Noodles & Co. (NDLS) as a Momentum Stock - Noodles & Co. (NDLS) has shown significant price momentum, with a four-week price change of 132.6%, indicating strong investor interest [3] - Over the past 12 weeks, NDLS has gained 110.5%, demonstrating its ability to deliver positive returns over a longer time frame [4] - NDLS has a beta of 1.77, suggesting it moves 77% more than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - NDLS has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to capitalize on its momentum [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - NDLS is trading at a Price-to-Sales ratio of 0.15, indicating it is relatively cheap, as investors pay only 15 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides NDLS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [8]