Noodles grows online sales but sees revenues shrink in Q4

BROOMFIELD — While Noodles & Co. (Nasdaq: NDLS) has pivoted nicely toward online, to-go orders during the COVID-19 pandemic, the fast-casual pasta chain posted lower revenues in the fourth quarter of 2020.

Sales in Q4 were $107.2 million, down 5.9% from the same period in 2019. 

Noodles’ net loss grew to $3.8 million for the quarter, up from $1.2 million in Q4 last year. 

Still, company leaders are expressing optimism that online revenue grew 128% year-over-year and accounted for 62% of sales in Q4.

“Our fourth quarter results reflect the continued resiliency of our brand, particularly surrounding our digital and off-premise capabilities, even against the resurgence of COVID-19 during the quarter,” Noodles CEO Dave Boennighausen said in a prepared statement.

“Noodles & Co.’s differentiated menu, bolstered by the recent introduction of our low-carb cauliflower gnocchi, supported by a robust digital program which grew to 62% of sales in the fourth quarter, is particularly well suited for the needs of today’s consumer,” he added.

The company hasn’t provided full guidance for 2021, but expects comparable restaurant sales growth in the mid-to-high single digits during Q1 and the addition of 10 to 15 new restaurants systemwide in 2021.

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