Noodles & Co Expected To Post A Loss Of 12 Cents A Share - Earnings

Noodles & Company NDLS is scheduled to release fourth-quarter 2024 results on March 6, 2025.

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In the last reported quarter, the company reported a negative earnings surprise of 71.4%.

How are Estimates Placed for NDLS?

The Zacks Consensus Estimate for fourth-quarter loss per share is pegged at 13 cents. In the prior-year quarter, NDLS reported a loss per share of 7 cents.

For revenues, the consensus mark is pegged at $123.3 million. The metric indicates a slight decline of 0.8% from the year-ago quarter’s figure.

Noodles & Company Price and EPS Surprise

Noodles & Company price-eps-surprise | Noodles & Company Quote

Let us analyze the factors that might have impacted the company’s performance in the quarter to be reported.

Factors to Note Ahead of NDLS’ Q4 Results

Noodles & Company’s revenues are expected to have declined year over year in the fourth quarter due to industry-wide volatility caused by a weak consumer environment. The company is likely to have faced intense competition, leading to higher discounting.

NDLS’ fourth-quarter top line is likely to reflect a deceleration in comparable restaurant sales owing to reduced winter and holiday traffic. The Zacks Consensus Estimates for fourth-quarter Restaurant revenues are pegged at $121 million, indicating a decline from $122 million reported in the prior-year quarter.

Nonetheless, emphasis on sales-driving initiatives, including operational improvements to enhance guest experience, menu innovation and controlled discounting, is likely to have supported performance. Strategic investments in loyalty programs, digital media and third-party marketplace spending are likely to have aided the company’s performance in the fourth quarter.

The consensus mark for Franchising royalties and fee revenues is pegged at $2.7 million, implying an increase from $2.5 million reported in the prior-year quarter.

Meanwhile, inflationary pressures, including food, labor, energy costs and construction materials, are likely to have negatively impacted the bottom line in the to-be-reported quarter.

What Our Model Says About NDLS 

Our proven model does not predict an earnings beat for Noodles & Company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.

Earnings ESP of NDLS: Noodles & Company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NDLS’ Zacks Rank: The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings

Here are some companies in the Zacks Retail-Wholesale sector which, according to our model, have the right combination of elements to post an earnings beat.

CAVA Group, Inc. CAVA has an Earnings ESP of +0.17% and a Zacks Rank of 3 at present.

CAVA is expected to register a 16.7% year over year increase in earnings for the to-be-reported quarter. It company reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 62.6%.

Brinker International, Inc. EAT currently has an Earnings ESP of +2.59% and a Zacks Rank of 1.

EAT reported an earnings beat in the trailing three out of four quarters and missed once, the average surprise being 24.7%. Its earnings for the to-be-reported quarter are expected to grow 91.1% year over year.

Yum! Brands, Inc. YUM currently has an Earnings ESP of +0.69% and a Zacks Rank of 3.

YUM’s earnings for the to-be-reported quarter are expected to grow 9.6% year over year. Its earnings topped the consensus mark in two of the trailing four quarters and missed on two occasions, with negative average surprise of 0.7%.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Noodles named Joe Christina as chief operating officer, effective Monday.

Christina, who most recently served as chief executive officer of Tijuana Flats, succeeds Brad West, who will be chief of staff through June before retiring, the company said Wednesday in a statement.

By Connor Hart

Noodles named Joe Christina as president and chief operating officer.

In the role, Christina will oversee operations and human resources, while also helping improve the company for both customers and employees, the restaurant chain said Wednesday.

He "will also help ensure the successful execution of our comprehensive new menu introduction in the first half of this year," Chief Executive Drew Madsen said.

Christina most recently served as CEO of Tijuana Flats, where he revitalized the brand and spearhead its expansion, Noodles said. Prior, he held several roles of increasing responsibility at Church's Chicken, and before that, at Burger King.

Brad West, who has served as Noodles' chief operating officer for eight years, will retire, though he plans to remain as chief of staff through June, helping ensure a seamless transition, the company said.

Write to Connor Hart at connor.hart@wsj.com