Noodles & Company to Post Q4 Earnings: What's in Store for the Stock?

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].