NDLS - Noodles posts double-digit gain in comparable sales and doubles EBITDA tally

2023-03-08 16:22:30 ET

Noodles & Company ( NASDAQ: NDLS ) pushed higher in postmarket trading on Wednesday after showing just enough with its Q4 earnings report to attract some buyers.

Comparable restaurant sales increased 8.7% during the quarter vs. +11.2% consensus, including a 10.2% jump for company-owned restaurants and 1.3% gain for franchised restaurants. Comparable restaurant sales showed continued momentum across all sales channels during the quarter and benefited from higher menu pricing.

Operating margin was 1.3% compared to an operating margin of -3.8% a year ago. Restaurant contribution margin increased 280 basis points to 15.2% of sales. Noodles ( NDLS ) pointed to leverage in many expense areas, particularly cost of labor and occupancy. A normalized pricing environment for chicken also helped the bottom line.

Adjusted EBITDA increased 101.6% year-over-year to $9.9M.

On the balance sheet, Noodles ( NDLS ) ended the quarter with a cash position of $1.5M and outstanding debt of $47.7M. Noodles ( NDLS ) had $74.3M available for future borrowings under its revolving credit facility.

Looking ahead, Noodles ( NDLS ) sees full-year EPS of $0.10 to $0.20 vs. $0.41 consensus.

Shares of Noodles ( NDLS ) moved up 2.02% following the earnings topper.

For further details see: