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Dec 29, 2020
Noodles & Co Q4 2020 Earnings Report
Reported a decrease in total revenue and net loss, but digital sales experienced substantial growth.
Key Takeaways
Noodles & Company's Q4 2020 results showed resilience in their digital and off-premise capabilities, with digital sales growing significantly. However, total revenue and restaurant contribution margin decreased compared to the same quarter of the previous year, and the company experienced a net loss.
Total revenue decreased by 5.9% to $107.2 million.
Digital sales grew by 128% and accounted for 62% of total sales.
Net loss was $3.8 million, or $0.09 loss per diluted share.
Restaurant contribution margin decreased to 13.6%.
Revenue by Segment
Forward Guidance
Noodles & Company is not providing full financial guidance for fiscal year 2021 due to the ongoing uncertainty surrounding the future impact of COVID-19. However, the Company is providing expectations within 2021.
Positive Outlook
- First quarter 2021 comparable restaurant sales in the mid-to-high single digits.
- Approximately ten to fifteen new restaurants system-wide in 2021, including eight to eleven company locations.
- Capital expenditures of $20 million to $24 million in 2021.
- 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.
Challenges Ahead
- Ongoing uncertainty surrounding the future impact of COVID-19.
- Potential impact on the Company’s near-term operations.
- Conditions beyond our control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting our customers or food supplies.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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