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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%.
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 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.
- Consumer reaction to industry related public health issues and health pandemics, including the COVID-19 pandemic and perceptions of food safety.
- The Company’s ability to achieve and maintain increases in comparable restaurant sales and to successfully execute our business strategy, including new restaurant initiatives and operational strategies to improve the performance of our restaurant portfolio.