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.
Noodles & Company Comps Improve Despite Pandemic, Stock Up
Read MoreHide Full Article
Noodles & Company (NDLS - Free Report) recently provided an update on financial performance amid the COVID-19 pandemic. Following the announcement, the company’s shares gained 3.7% during after-hours trading on Jun 17.
Comparable Sales
In the month of April, comparable sales at company-owned, franchise and system wide restaurants were down 47%, 55.5% and 48.2%, respectively. However, in the month of May, the metric declined 28.9%, 37.3% and 30.1%, respectively.
For the week ended Jun 16, 2020, comparable sales at company-owned, franchise and system wide restaurants declined 14.8%, 16.8% and 15.1%, respectively. Although comparable sales have improved significantly over the past couple of weeks, average weekly sales (for the fiscal week) declined 9.7% during the week ended Jun 16, 2020 versus the comparable week of 2019.
Fiscal quarter to date (ended Jun 30, 2020), comparable sales at company-owned, franchise and system wide restaurants are expected to fall 33.2%, 39.8% and 34.1%, respectively.
Menu Addition
Coming to menu innovation, the company added Perfect Bowls to its menu. Apart from serving classic noodle, Zoodle and Caulifloodle dishes, this healthier alternative caters to diets and lifestyles (including paleo-friendly, keto, vegetarian and gluten-sensitive) to match individual nutritional goals.
Other Updates
Although the company’s dining rooms were closed due to the pandemic, majority of the sales were derived from its off-premise services. Notably, digital sales for the week ended Jun 16, 2020 accounted for 67% of overall sales compared with 31% during the first quarter of 2020.
As of Jun 16, Noodles & Company reopened approximately 20% of its system-wide dining rooms, out of which 7% were company locations and 87% were franchised locations. Going forward, the company intends to reopen the remaining dining rooms as and when appropriate.
Although the virus has triggered a catastrophe in terms of lives lost and financial impact, the company appears resilient enough to navigate through these uncertain times. As of Jun 17, the company has $62.4 million in cash. It has also disclosed credit facility amendments through third-quarter 2021, further enhancing its financial flexibility. In the past six months, shares of the company have declined 7.5% compared with the industry’s fall of 6.6%.
Some better-ranked stocks from the same space include Wingstop Inc. (WING - Free Report) , Restaurant Brands International Inc. (QSR - Free Report) and Domino's Pizza, Inc. (DPZ - Free Report) . Wingstop sports a Zacks Rank #1, while Restaurant Brands and Domino’s carry Zacks Rank #2 (Buy).
Wingstop has a three-five year earnings per share growth rate of 11%.
Earnings in 2021 for Restaurant Brands are expected to surge 36.1%.
Domino's has a trailing four-quarter positive earnings surprise of 12.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in the last four quarters.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Image: Bigstock
Noodles & Company Comps Improve Despite Pandemic, Stock Up
Noodles & Company (NDLS - Free Report) recently provided an update on financial performance amid the COVID-19 pandemic. Following the announcement, the company’s shares gained 3.7% during after-hours trading on Jun 17.
Comparable Sales
In the month of April, comparable sales at company-owned, franchise and system wide restaurants were down 47%, 55.5% and 48.2%, respectively. However, in the month of May, the metric declined 28.9%, 37.3% and 30.1%, respectively.
For the week ended Jun 16, 2020, comparable sales at company-owned, franchise and system wide restaurants declined 14.8%, 16.8% and 15.1%, respectively. Although comparable sales have improved significantly over the past couple of weeks, average weekly sales (for the fiscal week) declined 9.7% during the week ended Jun 16, 2020 versus the comparable week of 2019.
Fiscal quarter to date (ended Jun 30, 2020), comparable sales at company-owned, franchise and system wide restaurants are expected to fall 33.2%, 39.8% and 34.1%, respectively.
Menu Addition
Coming to menu innovation, the company added Perfect Bowls to its menu. Apart from serving classic noodle, Zoodle and Caulifloodle dishes, this healthier alternative caters to diets and lifestyles (including paleo-friendly, keto, vegetarian and gluten-sensitive) to match individual nutritional goals.
Other Updates
Although the company’s dining rooms were closed due to the pandemic, majority of the sales were derived from its off-premise services. Notably, digital sales for the week ended Jun 16, 2020 accounted for 67% of overall sales compared with 31% during the first quarter of 2020.
As of Jun 16, Noodles & Company reopened approximately 20% of its system-wide dining rooms, out of which 7% were company locations and 87% were franchised locations. Going forward, the company intends to reopen the remaining dining rooms as and when appropriate.
Although the virus has triggered a catastrophe in terms of lives lost and financial impact, the company appears resilient enough to navigate through these uncertain times. As of Jun 17, the company has $62.4 million in cash. It has also disclosed credit facility amendments through third-quarter 2021, further enhancing its financial flexibility. In the past six months, shares of the company have declined 7.5% compared with the industry’s fall of 6.6%.
Zacks Rank & Key Picks
Noodles & Company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the same space include Wingstop Inc. (WING - Free Report) , Restaurant Brands International Inc. (QSR - Free Report) and Domino's Pizza, Inc. (DPZ - Free Report) . Wingstop sports a Zacks Rank #1, while Restaurant Brands and Domino’s carry Zacks Rank #2 (Buy).
Wingstop has a three-five year earnings per share growth rate of 11%.
Earnings in 2021 for Restaurant Brands are expected to surge 36.1%.
Domino's has a trailing four-quarter positive earnings surprise of 12.7%, on average. The company’s earnings beat the Zacks Consensus Estimate in the last four quarters.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.
Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>