Casual restaurant chain Noodles & Company (NASDAQ:NDLS) will be reporting results tomorrow after market hours. Here's what to expect.
Noodles met analysts' revenue expectations last quarter, reporting revenues of $121.4 million, down 3.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts' gross margin estimates and a solid beat of analysts' earnings estimates.
Is Noodles a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Noodles's revenue to grow 4.4% year on year to $130.7 million, a reversal from the 4.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Noodles has missed Wall Street's revenue estimates four times over the last two years.
Looking at Noodles's peers in the modern fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Wingstop delivered year-on-year revenue growth of 45.3%, beating analysts' expectations by 7.3%, and Chipotle reported revenues up 18.2%, topping estimates by 1.1%. Wingstop traded down 1.7% following the results while Chipotle was also down 1.9%.
Read our full analysis of Wingstop's results here and Chipotle's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the modern fast food stocks have fared somewhat better, they have not been spared, with share prices down 2.6% on average over the last month. Noodles is up 5.4% during the same time and is heading into earnings with an average analyst price target of $3.7 (compared to the current share price of $1.67).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.