Noodles & Co. misses on revenue, sees declining sales

BROOMFIELD — Noodles & Co. (Nasdaq: NDLS) was in-line with analyst expectations with 2 cents earnings per share for the third quarter.

The company missed on revenue by a quarter of a million dollars, down 6.9 percent year-over-year with revenue of $114 million.

Noodles & Co. attributes its miss on revenue to the closure of 55 restaurants during the first quarter of 2017.

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Net loss was $8.3 million, or a 20 cent loss per share, an improvement of a net loss of $9.8 million, or 35 cents per share, for the same period the year before.

When income is adjusted and account adjustments made for the impairment of 18 restaurants and ongoing costs of restaurant closings, the company’s net income was $900,000, or 2 cents per share.

Comparable restaurant sales decreased 3.5 percent across the brand’s system. It decreased 3.8 percent for company-owned restaurants and decreased 1.6 percent for franchise restaurants.

Noodles opened one new franchise restaurant in the third quarter of 2017.

Looking ahead to the end of the year, the company expects to open 16 new restaurants in 2017, 13 of which will be company-owned. Total revenue is expected to be between $452 million to $458 million. Company-owned comparable restaurant sales are expected to decline between 3 to 3.5 percent.