NDLS - Noodles & Company: Turnaround Thesis Remains Intact

• Noodles & Company released its Q1 results last month, reporting a sharp recovery in comparable-store sales, with this figure finally moving back into positive territory.
• The company continues to see strength in digital, with digital making up 57% of total sales, reinforcing the view that Ghost Kitchens are a viable option for new stores.
• While Noodles & Company looks expensive at more than 40x FY2021 annual EPS estimates, it's important to note that annual EPS is projected to increase nearly 70% by FY2023.
• At a share price of $12.75, I don't see enough of a margin of safety, but I would view any sharp pullbacks below $9.80 as low-risk buying opportunities.

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