Noodles & Co reports another loss

Noodles & Company has reported a net loss of $26.8 million for its first quarter ended April 4, 2017. The chain, which has struggled over thepast couple years, said its net loss attributable to common stockholders was $27.8 million or $0.99 loss per diluted share, compared to net loss of $2.4 million, or $0.09 loss per diluted share in the first quarter of 2016.

Q1 highlights included:

  • Total revenue increased 2.4 percent to $116.7 million from $114 million.
  • Comparable restaurant sales decreased 2 percent system-wide, decreased 2.5 percent for company-owned restaurants and increased 1.1 percent for franchise restaurants.
  • AUVs for the quarter overall decreased $34,000 compared to the first quarter of 2016. AUV’s for the trailing 12 months were $1,067,000. Excluding restaurants that were closed during the first quarter, AUV’s were $1,116,000.    
  • Eight restaurants opened system-wide in the first quarter of 2017, including seven company-owned restaurants and one franchise restaurant. 

2017 outlook

The company expects the following for the full year 2017:

  • Opening 14 to 17 restaurants system-wide, including 12 to 15 company-owned restaurants.
  • Growing total revenue of $458 million to $468 million.
  • Company-owned comparable restaurant sale decline of low-single-digits.
  • Restaurant-level contribution margin of 13.5 percent to 14.5 percent.
  • Adjusted EBITDA of $31 million to $35 million.
  • Flat adjusted net income. 
  • And capital expenditures will increase from $21 million to $25 million.

Topics: Operations Management

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