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Noodles & Company (NDLS) Q1 Earnings Beat Estimates, Fall Y/Y
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Noodles & Company (NDLS - Free Report) reported mixed results in first-quarter fiscal 2024, with earnings topping the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line declined on a year-over-year basis. Following the results, the company’s shares fell 9.8% during after-hours trading on May 8.
Earnings & Revenue Discussion
During the fiscal first quarter, the company reported an adjusted loss per share of 13 cents, narrower than the Zacks Consensus Estimate of a loss of 20 cents. The company reported a loss of 5 cents in the prior-year quarter.
Quarterly revenues of $121.4 million missed the consensus mark of $122 million. The top line declined 3.7% on a year-over-year basis. Attributes of a seasonally slower quarter, adverse weather conditions and tough year-ago comparisons added to the downside.
Noodles & Company Price, Consensus and EPS Surprise
During the quarter, restaurant revenues came in at $119 million compared with $123.2 million reported in the prior-year quarter. Franchise royalties and fees and other during the quarter came in at $2.3 million compared with $2.9 million reported in the prior-year quarter.
Comps
In the fiscal first quarter, system-wide comparable restaurant sales declined 5.4% year over year against growth of 6.4% reported in the prior-year quarter. The downside was primarily caused by a fall in traffic.
Company-owned comparable restaurant sales during the quarter fell 5.7% year over year against 6.9% growth reported in the prior-year quarter.
Franchise comparable restaurant sales in the fiscal first quarter fell 4.5% year over year against 4.1% growth reported in the prior-year quarter.
Operating Highlights
During the fiscal first quarter, general and administrative expenses came in at $13 million compared with $13.6 million reported in the prior-year quarter.
During the quarter, restaurant contribution margin declined 60 basis points year over year to 13.1%. In the fiscal first quarter, operating margin came in at (3.4%) compared with (1.8%) reported in the year-ago quarter.
Adjusted net loss during the quarter came in at $5.8 million compared with $2.7 million reported in the prior-year quarter.
Adjusted EBITDA in the fiscal first quarter came in at $5.5 million compared with $6.2 million reported in the prior-year quarter.
Balance Sheet
As of Apr 2, 2024, cash and cash equivalents totaled $1.3 million compared with $3 million as of Jan 2, 2024. At the end of the fiscal first quarter, outstanding debt amounted to $83 million compared with $82.2 million at the end of fourth-quarter fiscal 2023.
Fiscal 2024 Outlook
For the fiscal 2024, the company anticipates total revenues to be between $510 million and $525 million, with comparable restaurant sales growth remaining steady or potentially increasing by up to 3%.
Restaurant-level contribution margins are projected in the range of 14-15%. General and administrative expenses are estimated to amount between $52 million and $55 million. Depreciation and amortization costs are expected to range from $32-$34 million, while net interest expenses are forecast to be between $8 million and $9 million.
The company plans to open 10-12 new company-owned restaurants and up to three franchise-owned establishments during the fiscal 2024.
Zacks Rank
Noodles & Company currently has a Zacks Rank #3 (Hold).
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside can be attributed to robust total system sales growth and new unit contribution.
During the quarter, YUMC reported adjusted earnings per share (EPS) of 71 cents, beating the Zacks Consensus Estimate of 66 cents. The bottom line moved up 2.9% from 69 cents reported a year ago.
Quarterly revenues of $2.96 billion outpaced the consensus mark of $2.94 billion. The top line inched up 1% on a year-over-year basis. Excluding foreign currency translation, revenues increased 7% year over year.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. During the quarter, the company reported benefits from enhanced throughput and effective marketing initiatives like Braised Beef Barbacoa and Chicken Al Pastor, leading to strong sales and transaction growth. The company stated that the momentum continued into April.
During the quarter, CMG reported adjusted EPS of $13.37, outpacing the Zacks Consensus Estimate of $11.63. The bottom line increased 27.3% from $10.50 reported in the year-ago quarter.
Quarterly revenues of $2.7 billion surpassed the consensus mark of $2.68 billion by 1%. The top line rose 14.1% on a year-over-year basis on the back of strong comparable restaurant sales growth and new restaurant openings.
McDonald's Corporation (MCD - Free Report) posted mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported McDonald's reported adjusted EPS of $2.70, which missed the Zacks Consensus Estimate of $2.71. EPS increased 2% year over year.
Quarterly net revenues of $6,169 million beat the consensus mark of $6,168 million. The top line rose 5% year over year.
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Noodles & Company (NDLS) Q1 Earnings Beat Estimates, Fall Y/Y
Noodles & Company (NDLS - Free Report) reported mixed results in first-quarter fiscal 2024, with earnings topping the Zacks Consensus Estimate and revenues missing the same. The top and the bottom line declined on a year-over-year basis. Following the results, the company’s shares fell 9.8% during after-hours trading on May 8.
Earnings & Revenue Discussion
During the fiscal first quarter, the company reported an adjusted loss per share of 13 cents, narrower than the Zacks Consensus Estimate of a loss of 20 cents. The company reported a loss of 5 cents in the prior-year quarter.
Quarterly revenues of $121.4 million missed the consensus mark of $122 million. The top line declined 3.7% on a year-over-year basis. Attributes of a seasonally slower quarter, adverse weather conditions and tough year-ago comparisons added to the downside.
Noodles & Company Price, Consensus and EPS Surprise
Noodles & Company price-consensus-eps-surprise-chart | Noodles & Company Quote
During the quarter, restaurant revenues came in at $119 million compared with $123.2 million reported in the prior-year quarter. Franchise royalties and fees and other during the quarter came in at $2.3 million compared with $2.9 million reported in the prior-year quarter.
Comps
In the fiscal first quarter, system-wide comparable restaurant sales declined 5.4% year over year against growth of 6.4% reported in the prior-year quarter. The downside was primarily caused by a fall in traffic.
Company-owned comparable restaurant sales during the quarter fell 5.7% year over year against 6.9% growth reported in the prior-year quarter.
Franchise comparable restaurant sales in the fiscal first quarter fell 4.5% year over year against 4.1% growth reported in the prior-year quarter.
Operating Highlights
During the fiscal first quarter, general and administrative expenses came in at $13 million compared with $13.6 million reported in the prior-year quarter.
During the quarter, restaurant contribution margin declined 60 basis points year over year to 13.1%. In the fiscal first quarter, operating margin came in at (3.4%) compared with (1.8%) reported in the year-ago quarter.
Adjusted net loss during the quarter came in at $5.8 million compared with $2.7 million reported in the prior-year quarter.
Adjusted EBITDA in the fiscal first quarter came in at $5.5 million compared with $6.2 million reported in the prior-year quarter.
Balance Sheet
As of Apr 2, 2024, cash and cash equivalents totaled $1.3 million compared with $3 million as of Jan 2, 2024. At the end of the fiscal first quarter, outstanding debt amounted to $83 million compared with $82.2 million at the end of fourth-quarter fiscal 2023.
Fiscal 2024 Outlook
For the fiscal 2024, the company anticipates total revenues to be between $510 million and $525 million, with comparable restaurant sales growth remaining steady or potentially increasing by up to 3%.
Restaurant-level contribution margins are projected in the range of 14-15%. General and administrative expenses are estimated to amount between $52 million and $55 million. Depreciation and amortization costs are expected to range from $32-$34 million, while net interest expenses are forecast to be between $8 million and $9 million.
The company plans to open 10-12 new company-owned restaurants and up to three franchise-owned establishments during the fiscal 2024.
Zacks Rank
Noodles & Company currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
Yum China Holdings, Inc. (YUMC - Free Report) reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside can be attributed to robust total system sales growth and new unit contribution.
During the quarter, YUMC reported adjusted earnings per share (EPS) of 71 cents, beating the Zacks Consensus Estimate of 66 cents. The bottom line moved up 2.9% from 69 cents reported a year ago.
Quarterly revenues of $2.96 billion outpaced the consensus mark of $2.94 billion. The top line inched up 1% on a year-over-year basis. Excluding foreign currency translation, revenues increased 7% year over year.
Chipotle Mexican Grill, Inc. (CMG - Free Report) released stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. During the quarter, the company reported benefits from enhanced throughput and effective marketing initiatives like Braised Beef Barbacoa and Chicken Al Pastor, leading to strong sales and transaction growth. The company stated that the momentum continued into April.
During the quarter, CMG reported adjusted EPS of $13.37, outpacing the Zacks Consensus Estimate of $11.63. The bottom line increased 27.3% from $10.50 reported in the year-ago quarter.
Quarterly revenues of $2.7 billion surpassed the consensus mark of $2.68 billion by 1%. The top line rose 14.1% on a year-over-year basis on the back of strong comparable restaurant sales growth and new restaurant openings.
McDonald's Corporation (MCD - Free Report) posted mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.
During the quarter, MCD reported McDonald's reported adjusted EPS of $2.70, which missed the Zacks Consensus Estimate of $2.71. EPS increased 2% year over year.
Quarterly net revenues of $6,169 million beat the consensus mark of $6,168 million. The top line rose 5% year over year.