NDLS - Noodles tops sales expectations guides for unit growth

Noodles (NDLS) reports comparable sales increased 10.7% in Q1 vs. +7.2% consensus. Comparable sales were 10.5% at company-operated stores and rose 11.7% at franchised outlets. Both those marks were ahead of consensus expectations.Noodles saw cost of sales fall 50 bps year-over-year to 25.0% vs. 25.2% consensus. Restaurant margin came in at 13.6% of 14.1% consensus. That margin rate was considerably higher than the 10.7% recorded last year.CEO update: "As we look ahead, we are more encouraged than ever that our brand is well positioned to thrive in the years to come. Our 2019 and 2020 new restaurant openings as a group continue to have the best sales performance in our history, and we are making strong progress in building our pipeline to achieve 7% annual system-wide unit growth in 2022 and at least 10% shortly thereafter."Noodles is flat in AH trading after the earnings update.

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Noodles tops sales expectations, guides for unit growth