Noodles & Company fourth-quarter same-store sales declined 1.1 percent systemwide, but executives said the fast-casual chain is gaining momentum in fiscal 2016.
For the Dec. 29-ended quarter, Broomfield, Colo.-based Noodles & Company said same-store sales declined 0.9 percent for company-owned restaurants and 2.1 percent for franchised locations.
Revenue increased 7.9 percent, to $117.1 million, despite the closure of 16 company-owned locations during the quarter. The company swung to a net loss of $4.3 million, or a loss of 15 cents per share, for the quarter, compared with net income of $3.5 million, or 11 cents per share, a year ago.
“While earnings remained under pressure during the fourth quarter, I am pleased with the progress we made on implementing several initiatives,” said Kevin Reddy, Noodles & Company chairman and CEO.
During the quarter, the company introduced a “Made. Different.” brand positioning, which was activated through the launch of a Kids Meal nationwide and an integrated media campaign in select markets, he said.
“This new positioning highlights our differentiated, made-to-order fast-casual dining experience, as well as our continued commitment to food quality and transparency,” Reddy said.
The fundamental business is strengthening, he said. For fiscal 2016, same-store sales are expected to increase in the low single digits.
So far, same-store sales have risen 0.4 percent in the quarter to date through Feb. 24 at company-owned restaurants, and have increased 0.8 percent at franchised units, Reddy said.
For the year, same-store sales fell 0.3 percent systemwide, including a decline of 0.2 percent at company units and 0.9 percent at franchised locations.
Revenue grew 12.8 percent, to $455.5 million, for the year. But the chain ended the year with a net loss of $13.8 million, or a loss of 48 cents per share, compared with net income of $11.4 million, or 37 cents per share, the prior year.
In guidance for 2016, Noodles & Company said about 50 new locations are planned, including 40 to 45 company-owned restaurants.
The chain ended the year with 492 restaurants in 35 states, the District of Columbia and Canada.
Contact Lisa Jennings at [email protected].
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