News Column

Broomfield's Noodles & Company revenue misses amid 'unprecedented weather'

April 29, 2014

By Alicia Wallace, Daily Camera, Boulder, Colo.



April 29--Noodles & Company, the Broomfield-based operator of fast-casual restaurants, on Tuesday reported gains in income and revenue during the first three months of 2014, a quarter that the company's CEO said was "one of the most challenging in recent memory."

Noodles posted a net income of $1.4 million, or 5 cents per share, and revenue of $89.5 million during the quarter that ended on March 31. A year ago, the company's net income was $924,000, or 4 cents per share, on revenue of $81.3 million.

Shares of Noodles (Nasdaq:?NDLS) dropped $2.50, more than 6.5 percent, in after-hours trading to $35.50 as revenue fell below analyst expectations of $92.17 million.

Noodles opened 14 new restaurants during the first quarter and officials said their plans to open 42 to 50 company-owned restaurants and 10 to 15 franchise locations this year remain on target.

"The first quarter was one of the most challenging ones in recent memory due to unprecedented weather throughout the country, but particularly in the markets where we have our highest geographic concentration," Kevin Reddy, Noodles' chief executive officer, said in a statement. "Despite the difficult start to the year, Noodles & Company maintains one of the most attractive growth profiles in the restaurant space."

In addition to a launch of limited-time spring dishes, Noodles plans to roll out a catering program nationally by the middle of the third quarter, he said.

"We feel these initiatives, supported by intense focus on our throughput and service initiatives, will garner momentum through the balance of 2014," Reddy said

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Source: Daily Camera (Boulder, CO)