NDLS - Noodles & Company: On Track For An Earnings Breakout In 2022

• Noodles & Company is one of the best-performing restaurant stocks year-to-date, up more than 64% and trouncing the performance of its benchmark and the S&P-500.
• The solid performance can be attributed to the successful turnaround we've seen, with digital sales continuing to increase, management guiding for strong unit growth, and continued labor efficiency.
• However, with Noodles trading at over 30x FY2022 earnings estimates at a share price of $13.00, I continue to see limited margin of safety at current levels.
• Having said that, given Noodles' strong results and improving outlook, I would view any pullbacks below $11.15 as low-risk buying opportunities.

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