Noodles & Co. Plunges 20% On Disappointing Q2
Noodles & Co. (NASDAQ: NDLS) fell sharply in the extended session on disappointing second-quarter results and an outlook below expectations.
Second-quarter adjusted profit fell to $3.7 million, or $0.12 per share, from $4 million, or $0.13 per share last year. Revenue grew 11 percent to $99.5 million, from $89.2 million a year earlier.
Wall Street expected $0.15 per share on $102.9 million in revenue.
Net income rose to $3.5 million from $100,000 a year earlier.
Same-store sales fell 0.7 percent and adjusted income declined 7.5 percent in the period ended July 1.
For fiscal 2014, the company forecast flat earnings growth compared with 2013's adjusted income of $0.40 per share. Analysts expected $0.49.
Noodles & Co. also expects flat same-store sales for 2014.
Chief Executive Kevin Reddy said same-store sales have increased to 1.3 percent in the current quarter to date, and "our team's efforts and initiatives are resonating with guests."
In the second quarter 16 new restaurants opened, including 12 company-owned and four franchise restaurants, bringing the total to 410.
Noodles traded recently at $20.15, down more than 20 percent.
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