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Noodles & Company posts loss in 1Q

Noodles & Company posts loss in 1Q

Sales challenges limited to specific markets, CEO says

Soft sales in the Colorado, Washington, D.C., and Austin, Texas, markets dragged down same-store sales at Noodles & Company during the first quarter, the Broomfield, Colo.-based company said Tuesday.

Same-store sales increased 0.8 percent at company-owned restaurants and 1.4 percent at franchised units during the first quarter ended March 31. Systemwide same-store sales rose 0.9 percent.

Noodles & Company chairman and CEO Kevin Reddy said sales challenges have been limited to specific markets. Excluding Colorado, the greater D.C. area and Austin, same-store sales rose 3.2 percent systemwide during the quarter.

“We are confident that we understand our opportunities in these markets and are aggressively working on returning them to the success that we are seeing in the balance of the country,” Reddy said in a statement.

The company reported a net loss of $2.7 million for the quarter, or a loss of 9 cents per share, compared with net income of $1.4 million, or 5 cents per share, a year ago.

Adjusting for special charges and taxes, adjusted net income was $0.9 million, or 3 cents per share, the company said.

Revenue increased 18 percent, to $105.8 million, compared with $89.5 million a year ago.

Noodles & Company said same-store sales for the year are expected to increase in the low single digits.

Sixteen restaurants opened during the quarter, including 13 company-owned units and three franchised locations, for a total of 455 restaurants at the end of the quarter, including 399 company-owned locations.

Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout

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