Noodles shares tumble following 4Q earnings report

BROOMFIELD – Shares in Noodles and Co. (Nasdaq: NDLS) sank 14 percent in after-hours trading Thursday following a fourth-quarter and year-end earnings report that fell short of analysts’ expectations despite large revenue and income gains.

Noodles shares, which had risen more than 4 percent to close at $27.74 Thursday, were down to $23.89 less than an hour after the closing bell.

The fast-casual restaurant chain reported net income for the fiscal year ending Dec. 30 of $11.4 million, or 37 cents per diluted share, up 71.5 percent from a year earlier. Revenue for 2014 rose 15.1 percent to $403.7 million.

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For the fourth quarter, revenue climbed 19 percent to $108.5 million, while net income was up 47 percent to $3.5 million, or 11 cents per share.

“I am excited with the progress of our initiatives surrounding 2015, particularly as we begin activating an increased level of advertising spend in upcoming months to support building brand awareness,” Noodles CEO Kevin Reddy said in the company’s earnings release.