Noodles (NDLS) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2023/11/06 2:04 am EST

Casual restaurant chain Noodles & Company (NASDAQ:NDLS) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter Noodles reported revenues of $125.2 million, down 4.5% year on year, missing analyst expectations by 8.2%. It was a weak quarter for the company, with a miss of analysts' revenue and same-store sales estimates.

Is Noodles buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Noodles's revenue to decline 2.5% year on year to $126.1 million, a further deceleration on the 3.4% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

Noodles Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Noodles's peers in the modern fast food segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Chipotle delivered top-line growth of 11.3% year on year, missing analyst estimates by 0.1% and Wingstop reported revenues up 26.4% year on year, exceeding estimates by 7.3%. Chipotle traded up 5.2% on the results, and Wingstop was up 5.1%.

Read our full analysis of Chipotle's results here and Wingstop's results here.

There has been positive sentiment among investors in the modern fast food segment, with the stocks up on average 5.7% over the last month. Noodles is down 3.1% during the same time, and is heading into the earnings with analyst price target of $5.1, compared to share price of $2.22.

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The author has no position in any of the stocks mentioned.