Noodles reports less revenue, lower net loss

BROOMFIELD — Noodles & Co. (Nasdaq: NDLS) reported decreased revenue but a lower net loss for the first quarter of 2019.

The company released its first quarter results Thursday. Noodles ended the quarter on April 2.

Key highlights of the report:

• Revenue decreased by 0.4 percent, to $110 million, primarily because of fewer restaurants.
• Comparable restaurant sales were up 3 percent, including 3 percent at company stores and 2.8 percent at franchise locations.
• Net loss declined to $1.9 million from $3.6 million.
• Adjusted EBITDA was $5.6 million for both the first quarter of 2019 and 2018.

“We are pleased with our results in the first quarter, which included a 3.0 percent increase in comparable restaurant sales despite the severe weather patterns in many of our major markets,” Dave Boennighausen, CEO, said in making the quarterly report. “Our performance significantly strengthened during the last portion of the first quarter of 2019 and continues to strengthen to date in the second quarter. Importantly, traffic was positive during the last few weeks of March, and in the second quarter we are seeing further growth across traffic, price, and menu mix initiatives.”

“Our results to date in 2019 validate that our strategic initiatives are working. Our off-premise sales continue to grow significantly, reinforcing that the Noodles brand is uniquely positioned and gives us a competitive advantage in offering convenience and choice for today’s consumer. Off-premise increased to 56 percent of sales during the first quarter of 2019, led by our digital sales, which, inclusive of delivery, grew 63 percent over last year and accounted for 22 percent of sales,” he said.

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