Noodles stock sags despite improved performance

BROOMFIELD — Fast-casual pasta chain Noodles & Co. (Nasdaq: NDLS) saw its stock price drop on Thursday after a Wednesday evening quarterly report release that appears to have turned investors’ stomachs despite improved year-over-year top and bottom-line performance. 

Total revenue for the most-recent period was $126.1 million, up from $112.6 million in the first quarter of 2022, but below analysts’ expectations.

Net loss was $3.1 million in the first quarter of this year, compared with a loss of $6.4 million in the same period of 2022. 

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Comparable sales were up 6.9% year over year at company-owned restaurants and up 4.1% at franchise restaurants.

“This increase was primarily due to sales growth in the comparable restaurant base, in addition to a benefit from open restaurants that were temporarily closed during a portion of the first quarter of 2022 due to the Omicron variant,” the company said. 

Three restaurants opened in the first quarter of 2023, but an equal number closed.

“Noodles & Co.’s strong results in the first quarter reflected continued progress in our cost-savings initiatives, a more favorable expense environment, and the ability to leverage a double-digit revenue increase from both comparable sales and new restaurant growth,” Noodles CEO Dave Boennighausen said in a prepared statement.

For the full year, Noodles is projecting adjusted EBITDA of $45 million to $50 million.

Noodles’ stock price finished trading Thursday at $3.92, down 19.34%.