Noodles & pany(US:NDLS)2021-04-29 16:00Financial Performance - In Q1 2021, system-wide comparable restaurant sales increased by 10.7%, with a 10.5% increase for company-owned restaurants and an 11.7% increase for franchise restaurants[73]. - The company reported an EBITDA of $4.222 million for Q1 2021, compared to $481,000 in Q1 2020, and an adjusted EBITDA of $6.255 million, up from $1.785 million year-over-year[91]. - Total revenue increased by $9.2 million, or 9.2%, to $109.6 million in Q1 2021 compared to $100.3 million in Q1 2020[100]. - Net loss improved to $(1.977) million in Q1 2021 from $(5.835) million in Q1 2020, a 66.1% reduction[99]. - Net cash provided by operating activities increased to $3.8 million in Q1 2021 from a net cash used of $0.7 million in Q1 2020[114]. - Average unit volume (AUV) for comparable restaurant sales increased to $1,170, a 12.7% increase from $1,038 in the same period last year[99]. Operational Changes - The company permanently closed six company-owned restaurants in Q1 2021 but does not anticipate a significant number of closures in the near future[77]. - Labor efficiencies were implemented to mitigate increased base labor costs, including optimizing food preparation times and modifying labor models due to increased digital ordering[76]. - Incremental costs of sales have been incurred due to increased packaging supplies for off-premise orders, but supply chain savings have resulted in lower overall costs[75]. - The company has seen impressive digital growth, contributing to its return to positive comparable sales in Q1 2021[74]. Supply Chain and COVID-19 Impact - The company experienced minimal disruption to its supply chain, although it continues to monitor the situation due to potential impacts from the COVID-19 pandemic[75]. - The company continues to actively monitor the evolving COVID-19 situation and may adjust operations as necessary to protect stakeholders[72]. Future Growth and Expansion - As of March 30, 2021, the company operated 372 company-owned restaurants and 76 franchise restaurants across 29 states, with plans for system-wide unit growth of at least 7% annually starting in 2022, aiming for 10% growth to reach at least 1,500 units[77]. - The company estimates capital expenditures for fiscal year 2021 will be approximately $20.0 million to $24.0 million, primarily for opening 8 to 11 company-owned restaurants[118]. Cost Management - Restaurant operating costs as a percentage of restaurant revenue decreased to 101.2% in Q1 2021 from 104.8% in Q1 2020[96]. - Labor costs decreased to 31.8% of restaurant revenue in Q1 2021 from 34.7% in Q1 2020 due to increased sales and labor initiatives[103]. - Occupancy costs decreased to 10.8% of revenue in Q1 2021 from 12.2% in Q1 2020, primarily due to restaurant closures[104]. - Other restaurant operating costs increased by 21.1% in Q1 2021, with third-party delivery fees rising to 5.7% of total revenue[105]. Cash and Debt Management - Cash and cash equivalents as of March 30, 2021, were $3.1 million, with $52.3 million available for future borrowings[112]. - The company had $38.8 million of indebtedness as of March 30, 2021, with a term loan requiring principal payments of $187,500 per quarter through Q3 2021[124]. - An increase or decrease of 1.0% in the effective interest rate on the $38.8 million outstanding borrowings would result in a pre-tax interest expense fluctuation of approximately $0.4 million annually[127]. - The company operates with negative working capital, relying on cash or credit/debit card payments for restaurant sales, which reduces the need for significant inventories[119]. - The company believes it will have sufficient liquidity to meet cash requirements for at least the next twelve months through available cash and cash flows from operations[124].