Noodles posts income, revenue growth in Q4 2018

BROOMFIELD — Noodles & Co. (Nasdaq: NDLS) posted a 2018 fourth-quarter net income of $19,000, or zero cents per share, a significant improvement over the same period the year prior, when the company had a net loss of $487,000, or 1 cent per share. The company went from 41.1 million shares in the fourth quarter of 2017 to about 43 million for the fourth quarter of 2018.

Net revenue grew from $112.8 million in Q4 2017 to $113.2 million in Q4 2018, missing analyst expectations by $560,000.

In Q4 2018, Noodles had a $600,000 charge for closure costs of seven restaurants. In Q4 2017 the company also incurred a $600,000 impairment charge related to three restaurants and $900,000 related to closures. Adjusted net income was $500,000, or 1 cent per share, in Q4 2018.

Comparable restaurant sales for the quarter increased 4 percent system-wide, increased by 3.7 percent for company-owned restaurants and by 5.3 percent for franchise restaurants.

For the full year, net loss decreased from $37.5 million, or $1.20 per share, in 2017 to $8.4 million, or 20 cents, in 2018. Revenue grew from $456.5 million in 2017 to $458 million in 2018.

In 2018, Noodles incurred a $400,000 impairment charge related to one restaurant and $4.1 million in charges related to 19 restaurant closures. In 2017, the company recorded a $15.2 million impairment charge related to 34 restaurants and $20.1 million in closure costs for 55 restaurants. In 2018 Noodles also incurred a charge of $3.4 million for the final settlement related to a data breach. Adjusted net income for the full year of 2018 was $1 million, or 2 cents per share, compared to an adjusted net loss of $900,000, or 2 cents per share, in 2017.

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