NASDAQ$NDLS

Noodles & Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Noodles & Company reported mixed results with a decrease in total revenue but an increase in restaurant contribution margin and adjusted EBITDA.

Noodles & Company's third quarter 2023 results showed a decrease in total revenue by 1.2% to $127.9 million, while comparable restaurant sales decreased by 3.7%. Net income remained relatively flat at $0.7 million, or $0.02 per diluted share. However, the company saw improvements in operating margin, restaurant contribution margin, and adjusted EBITDA.

  • Total revenue decreased by 1.2% to $127.9 million.
  • System-wide comparable restaurant sales decreased by 3.7%.
  • Net income was $0.7 million, or $0.02 per diluted share.
  • Adjusted EBITDA increased by $1.9 million to $11.7 million.

Headline financials

Total Revenue

$128M

Previous: $129M-1.2%
EPS (adj)

$0.04

Previous: $0.04+0.0%
Restaurant Contribution Margin

16.4%

Previous: 14.4%+13.9%
Adjusted EBITDA

$11.7M

No prior period
Capital Expenditures

-$36.7M

Previous: -$22.5M-62.9%
Free Cash Flow

-$36M

Previous: -$21.8M-65.6%
Net Income

$700K

Previous: $795K-11.9%
Operating Income

$2.03M

Previous: $1.53M+33.0%
Gross Profit

-$21.9M

Previous: -$21.9M+0.2%
Cash & Equivalents

$2.53M

Previous: $1.84M+37.5%
Total Assets

$369M

Previous: $343M+7.5%

Revenue & EPS history

Noodles & Co · Revenue · Quarterly

$128M

Q3 2023-1.2%vs Q3 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Noodles & Co · $113M total across 2 segments · Q1 2022

  • Restaurant Revenue
    $110M+2.1%
  • Franchising Royalties and Fees
    $2.6M+41.9%

Forward guidance

Noodles & Company has revised its full-year 2023 guidance, expecting total revenue between $502 million and $506 million and adjusted EPS between ($0.08) and $0.00.

Tailwinds

  • Total revenue of $502 million to $506 million.
  • Restaurant contribution margin of approximately 15.0%.
  • General & administrative expense of $50 million to $52 million.
  • Adjusted EBITDA of $36 million to $40 million.
  • Adjusted EPS of ($0.08) to $0.00, including the benefit from our new share repurchase program.

Headwinds

  • Negative low single-digit Comparable Restaurant Sales.
  • Depreciation and amortization of $26.0 million to $27.0 million.
  • Disposal of assets of $3.0 million to $3.5 million.
  • Net interest expense of $4.5 million to $5.0 million.
  • Capital expenditures of $45 to $50 million in 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-2.6%

Avg return

Earnings day

+0.4%

Avg return

5 days after

-0.1%

Avg return

30 days after

36%

18 / 50 earnings

Positive

+20.9%

Q1 2018

Best reaction

-28.8%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+1.2%+7.7%
Q3 2025+13.6%+15.2%+48.5%
Q1 2025-15.8%-13.9%-20.8%
Q4 2025+13.6%-3.2%-10.4%
Q3 2024-14.4%-23.7%-46.6%
Q2 2024-13.7%-0.6%-13.0%
Q1 2024+20.8%+19.1%+10.7%
Q4 2023-10.8%-20.3%-38.2%
Q3 2023+12.7%+19.1%+50.0%
Q2 2023-3.5%-3.9%-16.9%
Q1 2023-18.8%-20.1%-29.2%
Q3 2022-6.0%+5.7%-7.0%
Q2 2022+12.6%+18.1%+10.3%
Q1 2022+14.9%+20.2%+34.2%
Q4 2021-16.8%-20.9%-32.3%
Q3 2021-3.5%-2.8%-15.8%
Q2 2021+4.6%+2.6%+3.1%
Q1 2021+14.3%+13.8%+22.2%
Q4 2020-1.4%+16.4%+11.2%
Q3 2020-14.4%-20.4%+1.4%
Q2 2020+6.3%+14.9%+10.6%
Q1 2020-4.0%+4.7%+45.1%
Q4 2019-0.1%-4.0%-37.1%
Q3 2019+6.2%+16.7%+8.8%
Q2 2019-6.4%-11.4%-21.5%
Q1 2019+14.2%+9.2%-4.3%
Q4 2018-15.3%-11.3%-12.6%
Q3 2018-24.3%-23.0%-25.7%
Q2 2018-2.5%-0.8%-7.0%
Q1 2018+20.9%+32.4%+27.7%
Q4 2017+7.8%+18.0%+15.6%
Q3 2017+2.3%+9.3%+9.3%
Q2 2017-6.3%-5.0%+21.2%
Q1 2017-2.7%-14.5%-26.5%
Q4 2016+6.6%-5.3%+51.3%
Q3 2016-8.8%-14.3%-8.8%
Q2 2016-5.8%-7.9%-11.2%
Q1 2016-2.6%
Q4 2015-2.4%
Q3 2015-13.2%
Q2 2015-19.2%
Q1 2015-17.3%
Q4 2014-28.8%
Q3 2014+15.9%
Q2 2014-16.5%
Q1 2014-10.3%
Q4 2012-0.8%
Q4 2013+5.4%
Q3 2013-11.7%
Q2 2013-8.3%
Q1 2013
Q3 2012
Q2 2012
Q1 2012

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro