Noodles puts a fork in Wall Street estimates

BROOMFIELD — Noodles & Co. (Nasdaq: NDLS) continued its forward momentum in the third quarter of fiscal year 2021, surpassing Wall Street earnings estimates as the company bounces back from a pandemic-plagued 2020.

“We are very pleased to report another quarter of record high average unit volumes, reflecting the continued momentum of the Noodles & Co. brand and our ability to remain resilient in volatile market conditions,” Noodles CEO Dave Boennighausen said in a statement that accompanied the fast-casual eatery chain’s quarterly report. “Our results in the third quarter were driven by strength across all channels, with continued retention in our digital offering and further acceleration within our in-restaurant business.”

Revenue grew 18.1% to $125.1 million in the third quarter of 2021, up from $106 million during the same period last year. 

Net income was $4.7 million, or $0.10 per diluted share, during the most recent quarter, compared with a net loss of $100,000 during the third quarter of 2020.  

Those third quarter 2021 earnings eclipse the Zachs Consensus Estimate of $0.09 per share.

“Our business fundamentals remain strong, and we have never been more encouraged by the Noodles & Co. growth opportunity, both from a restaurant economics and a unit growth basis. While we anticipate continued volatility through the balance of the year due to the current staffing and supply chain environment, the progress we have made toward our accelerated growth objectives gives us further confidence in our ability to successfully navigate any market condition.”

There were 450 restaurants system-wide at the end of the third quarter 2021. Of those, 374 are company-owned restaurants and 76 are franchise restaurants, according to the quarterly report.

Noodles expects to open seven to nine new restaurants before the end of the fiscal year, down from previous expectations of as many as 15 openings. 

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