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Mar 30, 2021

Noodles & Co Q1 2021 Earnings Report

Noodles & Company reported strong first quarter results with company-owned comparable restaurant sales growth and increased average unit volumes.

Key Takeaways

Noodles & Company announced positive financial results for Q1 2021, featuring a 10.5% increase in company-owned comparable restaurant sales and a 12.7% increase in average unit volumes compared to Q1 2020. Digital sales grew by 110%, accounting for 62% of total sales. The company reported a net loss of $2.0 million, an improvement from the $5.8 million net loss in Q1 2020.

Total revenue increased by 9.2% to $109.6 million compared to $100.3 million in Q1 2020.

System-wide comparable restaurant sales increased by 10.7%, with a 10.5% increase at company-owned restaurants and an 11.7% increase at franchise restaurants.

Digital sales grew 110% and accounted for 62% of sales.

Net loss decreased to $2.0 million, or $0.04 per diluted share, compared to a net loss of $5.8 million, or $0.13 per diluted share, in Q1 2020.

Total Revenue
$110M
Previous year: $100M
+9.2%
EPS
-$0.02
Previous year: -$0.09
-77.8%
System-wide comparable sales
10.7%
Previous year: -7.2%
-248.6%
Restaurant contribution margin
13.6%
Company-owned comparable sales
10.5%
Gross Profit
$16.4M
Previous year: $12.2M
+35.2%
Cash and Equivalents
$3.1M
Previous year: $50.5M
-93.9%
Free Cash Flow
$1.05M
Previous year: -$4.58M
-122.9%
Total Assets
$343M
Previous year: $414M
-17.1%

Noodles & Co

Noodles & Co

Noodles & Co Revenue by Segment

Forward Guidance

Noodles & Company is not providing full financial guidance for fiscal year 2021 due to the uncertainty surrounding the COVID-19 pandemic, but expects to open 10 to 15 new restaurants system-wide and have capital expenditures of $20 million to $24 million.

Positive Outlook

  • System-wide unit growth of at least 7% annually beginning in 2022, quickly reaching 10% annual growth on a path to at least 1,500 units.
  • Average unit volumes of $1.45 million by 2024.
  • Restaurant contribution margin of 20% by 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income