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Jan 03, 2023

Noodles & Co Q4 2022 Earnings Report

Announced Q4 2022 financial results, featuring a 10.2% increase in company-owned comparable restaurant sales and significant expansion of operating and restaurant contribution margins compared to Q4 2021.

Key Takeaways

Noodles & Company reported strong Q4 2022 results, with total revenue increasing by 18.9% to $136.5 million and company-owned comparable restaurant sales rising by 10.2%. Net income was $1.0 million, a significant improvement from the net loss of $4.7 million in the same quarter of the previous year. The company's operating margin also saw substantial growth, reaching 1.3% compared to (3.8)% in Q4 2021.

Total revenue increased 18.9% to $136.5 million.

Company-owned comparable restaurant sales increased 10.2%.

Net income was $1.0 million, or $0.02 per diluted share, compared to a net loss of $4.7 million, or $0.10 loss per diluted share.

Adjusted EBITDA increased 101.6% to $9.9 million.

Total Revenue
$136M
Previous year: $115M
+18.9%
EPS
$0.03
Previous year: -$0.05
-160.0%
Restaurant contribution margin
15.2%
Previous year: 12.4%
+22.6%

Noodles & Co

Noodles & Co

Forward Guidance

The Company is providing the following expectations for the first quarter of fiscal year 2023: •Total revenue of $125 million to $128 million, compared to $112.6 million in the first quarter of 2022; •Comparable restaurant sales in the high-single digits; and •Restaurant level contribution margins of 12.5% to 12.8%, compared to 9.7% in the first quarter of 2022. The Company is providing the following expectations for the full fiscal year 2023: •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; •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; and •Capital expenditures of $53 million to $58 million in 2023.