Noodles & Company reported a 12-percent decline in third-quarter net income Wednesday, but said improvements in same-store sales indicate growing momentum for the chain.
The Broomfield, Colo.-based fast-casual operator reported a systemwide same-store sales increase of 1.7 percent during the quarter ended Sept. 30, a return to positive territory following declines in the second quarter of 0.6 percent at corporate units and 1.2 percent at franchised locations.
The company was particularly pleased with the growth in catering, now available systemwide, Noodles & Company chairman and chief executive Kevin Reddy said.
“We believe investments that we made during the third quarter in marketing and promotion of our catering offering are having a positive impact and have us well positioned to build on this momentum through the balance of 2014 and into 2015,” Reddy said in a statement.
Adjusting for costs related to the initial public offering last year, Noodles & Company’s net income would have decreased 8.8 percent, to $3 million, or 10 cents per share, compared with $3.3 million, or 11 cents per share, a year ago.
Noodles & Company closed the quarter with 425 locations, including 370 company-owned and 55 franchised units.
For fiscal 2014, company officials expect to close the year with 48 to 50 new company-owned restaurants and 10 to 12 new franchised units. Same-store sales for the year are expected to be flat to up 0.5 percent.
In 2015, the company expects same-store sales growth between 2.5 percent to 4 percent, with unit growth between 12 percent and 14 percent.
3Q NET LOSS
Result: $2.9 million, or 10 cents per share% Decrease: 12% (from $3.3 million, or 11 cents per share)
3Q REVENUE
Result: $106.2 million% Increase: 19% (from $88.9 million)
3Q SAME-STORE SALES
% Increase systemwide: 1.7%
% Increase corporate: 1.6%
% Increase franchised: 2%
Source: Company report
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Contact Lisa Jennings at [email protected].
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