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Apr 04, 2023
Noodles & Co Q1 2023 Earnings Report
Noodles & Company's first quarter reflected progress in cost-savings initiatives and a favorable expense environment, leveraging a double-digit revenue increase from comparable sales and new restaurant growth.
Key Takeaways
Noodles & Company reported a 12.0% increase in total revenue to $126.1 million, with company comparable restaurant sales increasing by 6.9%. The operating margin improved by 360 basis points, and the restaurant contribution margin improved by 400 basis points compared to the first quarter of 2022.
Total revenue increased 12.0% to $126.1 million.
Company comparable restaurant sales increased 6.9%.
Operating margin improved to (1.8)% compared to (5.4)% in the first quarter of 2022.
Restaurant contribution margin increased to 13.7% compared to 9.7% in the first quarter of 2022.
Noodles & Co
Noodles & Co
Forward Guidance
The Company is reiterating guidance related to its 2023 performance.
Positive Outlook
- Restaurant level contribution margins of 16.0% to 17.0%
- Adjusted EBITDA of $45 million to $50 million
- Depreciation and amortization of $25.5 million to $27.5 million
- Disposal of assets of $3.0 million to $3.5 million
- Net interest expense of $4.0 million to $4.5 million
Challenges Ahead
- Stock-based compensation of $6.0 million to $7.0 million
- Adjusted EPS of $0.10 to $0.20
- Approximately 7.5% new restaurant growth system-wide, with a majority of openings being company-owned
- Capital expenditures of $53 million to $58 million in 2023