NDLS - Noodles & Company: A Potential Turnaround Story

• Noodles & Company is one of the best-performing restaurant stocks in 2020, up 50% year-to-date.
• The company has struggled in the past, but looks to be turning operations around, with Noodles being one of the few restaurants to return to positive same-store sales in September.
• However, menu innovation and strong growth in digital sales are positive developments, the stock is not cheap at 32x~ FY2021 annual EPS estimates.
• Therefore, while I think Noodles is a name to keep an eye on if it pulls back closer to $6.80, I don't see enough of a margin of safety to put new money to work at current levels.

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