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Sep 27, 2022
Noodles & Co Q3 2022 Earnings Report
Announced third quarter financial results with a comparable restaurant sales increase of 3.4% and total revenue increase of 3.4%.
Key Takeaways
Noodles & Company reported a 3.4% increase in total revenue to $129.4 million and a net income of $0.8 million, or $0.02 per diluted share, for the third quarter of 2022. The company's comparable restaurant sales increased by 2.1% system-wide, with a 3.4% increase at company-owned restaurants. Despite inflationary pressures, the company saw sales trends accelerate through the quarter and into October.
Total revenue increased 3.4% to $129.4 million.
System-wide comparable restaurant sales increased 2.1%.
Net income was $0.8 million, or $0.02 per diluted share.
Company Average Unit Volumes (AUV) reached $1.39 million, a 16.8% increase versus Q3 2019.
Noodles & Co
Noodles & Co
Forward Guidance
The Company is providing the following expectations for the fiscal year 2022, reflecting the 53rd fiscal week that will occur during the fourth quarter of 2022.
Positive Outlook
- Fourth quarter 2022 total revenue of $133.5 million to $136.5 million
- Fourth quarter 2022 restaurant level contribution margin of 14.5% to 15.0%
- Reiterates full year 2022 unit growth of approximately 5%
- Reiterates full year 2022 capital expenditures of $30.0 to $33.0 million in 2022, representing approximately $7.0 to $10.0 million in the fourth quarter.
- Fixed cost contract for chicken for next year
Challenges Ahead
- Difficult inflationary environment concerning wage pressure