Hospitality & Tourism  August 6, 2015

Noodles’ share price plummets on 2Q earnings report

BROOMFIELD — Fast-casual restaurant chain Noodles & Co. (Nasdaq: NDLS) on Thursday reported a profit of $3.1 million, or 10 cents per share, for its second quarter that ended June 30, compared with $3.5 million in profit for the same quarter a year ago.

Broomfield-based Noodles generated revenue of $115.2 million for the quarter, an increase of 15.9 percent compared with $99.5 million for the same quarter a year ago.

The results missed analyst expectations and caused Noodles’ share price to plummet more than 15 percent in after-hours trading to an all-time low of $12.78.

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The increase was the result of new restaurants that opened since the beginning of the second quarter of 2014, the acquisition of 20 franchise restaurants during the past 12 months, and a modest increase in sales at company-owned restaurants. Noodles has been implementing a new marketing strategy, and the decline in profit margin was attributed primarily to a higher mix of immature restaurants and increased labor pressures.

Seventeen new restaurants opened systemwide in the second quarter, including 11 company-owned and six franchise restaurants. Noodles now has 489 restaurants — 422 company-owned and 67 franchises restaurants.

“During the second quarter, we had a successful opening at our initial restaurant in Toronto, and we made progress in our underperforming markets,” Kevin Reddy, Noodles’ chairman and chief executive, said in a prepared statement. “While our comparable restaurant sales and net income in the second quarter fell below our expectations, the underlying business model remains strong.”

BROOMFIELD — Fast-casual restaurant chain Noodles & Co. (Nasdaq: NDLS) on Thursday reported a profit of $3.1 million, or 10 cents per share, for its second quarter that ended June 30, compared with $3.5 million in profit for the same quarter a year ago.

Broomfield-based Noodles generated revenue of $115.2 million for the quarter, an increase of 15.9 percent compared with $99.5 million for the same quarter a year ago.

The results missed analyst expectations and caused Noodles’ share price to plummet more than 15 percent in after-hours trading to an all-time low of $12.78.

The…

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