We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Various sales building initiatives undertaken by the company such as streaming of menu and its innovation, introduction of new cooking procedures, effective marketing strategy, increased focus on the off-premise business along with investments in technology-driven initiatives like digital ordering should boost the quarter’s results. Moreover, efforts to simplify operations is likely to improve execution and result in increased guest satisfaction and labor productivity.
However, continual underperformance of a small segment of its total restaurant base has been leading to earnings and margins declines over the past few quarters. Though the company has been closing some of the underperforming units, still the remaining ones are anticipated to hamper Q1 results as well. Additionally, this fast casual restaurateur’s first-quarter margins are further expected to be pressurized due to higher costs as well as expenses related to the implementation of strategic initiatives.
Also, a soft consumer spending environment in the U.S. restaurant space might continue to hurt traffic and thereby comps in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show earnings beat for Noodles & Company this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Noodles & Company has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 8 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Noodles & Company has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +4.40% and a Zacks Rank #2.
The Priceline Group Inc. has an Earnings ESP of +2.16% and a Zacks Rank #3.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
Image: Bigstock
What Awaits Noodles & Company (NDLS) Stock in Q1 Earnings?
Noodles & Company (NDLS - Free Report) is scheduled to report first-quarter 2017 numbers on May 9, after market close.
Last quarter, the company posted a 42.86% positive earnings surprise. However, the trailing four-quarter average negative surprise is 6.55%.
Let’s see how things are shaping up for this announcement.
Noodles & Company Price and EPS Surprise
Noodles & Company Price and EPS Surprise | Noodles & Company Quote
Factors Likely to Influence Q1 Results
Various sales building initiatives undertaken by the company such as streaming of menu and its innovation, introduction of new cooking procedures, effective marketing strategy, increased focus on the off-premise business along with investments in technology-driven initiatives like digital ordering should boost the quarter’s results. Moreover, efforts to simplify operations is likely to improve execution and result in increased guest satisfaction and labor productivity.
However, continual underperformance of a small segment of its total restaurant base has been leading to earnings and margins declines over the past few quarters. Though the company has been closing some of the underperforming units, still the remaining ones are anticipated to hamper Q1 results as well. Additionally, this fast casual restaurateur’s first-quarter margins are further expected to be pressurized due to higher costs as well as expenses related to the implementation of strategic initiatives.
Also, a soft consumer spending environment in the U.S. restaurant space might continue to hurt traffic and thereby comps in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show earnings beat for Noodles & Company this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Noodles & Company has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 8 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Noodles & Company has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Jack in the Box Inc. (JACK - Free Report) has an Earnings ESP of +4.40% and a Zacks Rank #2.
The Priceline Group Inc. has an Earnings ESP of +2.16% and a Zacks Rank #3.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>