Noodles & Co. reports earnings, announces stock offering

BROOMFIELD —  Noodles & Co. (Nasdaq: NDLS) reported rising revenues in the third quarter of fiscal year 2018.

Sales for the quarter that ended Oct. 2 were up 2.2 percent to $116.7 million from $114.2 million during the same period in 2017, according to the Broomfield-based fast-casual restaurant chain’s quarterly earnings report.

Noodles reported net income of $1.1 million, or 2 cents per diluted share, compared with a net loss of $8.3 million in the third quarter of 2017, or 20-cent loss per diluted share.

Comparable restaurant sales were up 5.5 percent companywide, including a 5.2 percent increase for company-owned restaurants and a 7.6 percent increase for franchise restaurants, according to a Noodles news release.

“Our results continued to benefit from the successful launch of our zucchini noodle offering in May, as well as from investments in our off-premise business and in the continued improvement in operational execution by our talented team members,” Noodles CEO Dave Boennighausen said in a prepared statement.

The company’s earning report was released after the close of trading Tuesday.

Despite the positive income momentum, Noodles’ quarterly results failed to live up to Wall Street expectations of 4 cents per share. After-hours trading saw Noodles stock tumble roughly 15 percent in the hours immediately after the earnings announcement.

The company also announced Tuesday a secondary offering of 8,750,000 shares of Class A common stock.

Jefferies LLC, Citigroup and RBC Capital Markets LLC are acting as joint book-running managers for the offering, according to a Noodles news release. SunTrust Robinson Humphrey, Inc. and C.L. King & Associates, Inc. are acting as co-managers for the offering.

Earlier this year, the company held a public offering of 8.5 million shares.

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