BROOMFIELD — Noodles & Co. (Nasdaq: NDLS) missed analyst expectations by 91 cents, posting earnings per share of 99 cents for the first quarter.
Despite missing on earnings, the Broomfield restaurant chain managed to increase its revenue by 2.4 percent to nearly $117 million, beating expectations by about $1.4 million.
The company overall had a net shareholder loss of $27.8 million in the first quarter compared with a net loss of $2.4 million for the same period in 2016.
The company’s chief financial officer and interim chief executive, Dave Boennighausen, is taking a more positive outlook on Noodles’ results.
“During the first quarter of 2017 we completed two important steps to allow us to sharpen our focus on improving the performance and profitability of our go-forward portfolio,” he said in a prepared statement. “First, the company completed private placements with L Catterton and Mill Road Capital, resulting in $50 million of gross proceeds. These investments are from firms with strong records in the consumer space and allow us to pursue the steps necessary to complete our transformation plan through the balance of 2017 and beyond.”
He said the second important step was closing 55 restaurants that “had been a persistent burden on the company’s human and financial capital.” Boennighausen said the closures should have a significant benefit on future earnings.
During the first quarter, Noodles opened eight new restaurants — seven owned by the company and one franchise. By the end of the first quarter, Noodles had 482 restaurants, 409 of which are company-owned.
Comparable store sales for the first quarter decreased 2 percent across the system.
Despite the loss, Noodles’ stock jumped slightly after the market close on Tuesday to $5.80 per share.