Noodles & Co. Reports Q4 Earnings, Shares Down
Noodles & Co. (NASDAQ: NDLS) on Wednesday afternoon reported its fourth-quarter earnings. Shares of the food company plummeted, due to earnings coming short of what was expected. Shares were down $2.80 or 7.08 percent in after-hours trading; this was despite an original gain of $2.90 or 7.91 percent, which brought the company's share price to $36.75 per share.
Below are some key metrics for this not only this quarter but guidance for the next quarters as well:
• Noodles & Co. reported a profit of $0.11 per share; this was a penny below what analysts' had originally expected.
• Aggregate revenue increased 17.4 percent to $91.5 million for the fourth quarter; analysts' had expected fourth-quarter to be $92.5 million.
• Same-store sales growth was about 4.3 percent.
Kevin Reddy, Chairman and CEO, said this about the quarter's performance: “We're pleased to have maintained our operating momentum in the fourth quarter with our 18th straight quarter of comparable restaurant sales growth and a 66% increase in our adjusted net income for the quarter.
“Looking ahead to 2014, we have faced an unusual amount of severe winter weather during the first quarter to date. Nearly 80% of our restaurants are located in areas severely impacted by atypical weather, including the Mid-Atlantic, Upper Midwest and Rocky Mountain West. In fact, over 30% of our operating days thus far have seen either measurable precipitation or temperatures at least twenty degrees below normal. As a result, in the first quarter we anticipate a roughly 300 to 350 bps negative impact to revenue and $0.03 impact to diluted earnings per share. Still, we remain confident that we can deliver on our 25% annual adjusted diluted earnings per share growth goal for 2014.”
As for future guidance the company, is looking to open 42 to 50 new corporate-owned restaurants, along with 10 to 15 new franchise units, and total revenue to be between $406 to $412 million.
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