NDLS - Noodles & Co.: Further Weakness Should Present A Buying Opportunity

• Noodles is down more than 40% from last year's highs, despite the fact that it was one of the few brands to increase margins on a two-year basis last quarter.
• The company is also seeing a return to unit growth in 2022 and is seeing great results from its new restaurants, with sales volumes well above its traditional store base.
• With a mix of high single-digit unit growth, pricing power, given its relatively healthy value proposition, and a very reasonable valuation, the stock has become compelling after the recent correction.
• Given the improving outlook, I would view any pullbacks below $7.20 before April as low-risk buying opportunities.

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