DB:NO3

Stock Analysis Report

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Executive Summary

Noodles & Company develops and operates fast-casual restaurants in the United States.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Noodles's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NO3's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.8%

NO3

22.9%

DE Hospitality

3.1%

DE Market


1 Year Return

-20.9%

NO3

-29.7%

DE Hospitality

0.1%

DE Market

Return vs Industry: NO3 exceeded the German Hospitality industry which returned -29.7% over the past year.

Return vs Market: NO3 underperformed the German Market which returned 0.1% over the past year.


Shareholder returns

NO3IndustryMarket
7 Day7.8%22.9%3.1%
30 Day-13.8%20.0%5.6%
90 Day-27.5%-16.6%-1.8%
1 Year-20.9%-20.9%-27.1%-29.7%1.8%0.1%
3 Year19.0%19.0%-49.8%-56.5%-7.2%-14.3%
5 Year-64.4%-64.4%-47.8%-58.7%4.3%-9.1%

Price Volatility Vs. Market

How volatile is Noodles's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Noodles undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NO3 (€5) is trading below our estimate of fair value (€27.98)

Significantly Below Fair Value: NO3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NO3 is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: NO3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NO3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NO3 is overvalued based on its PB Ratio (5.8x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Noodles forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

129.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NO3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: NO3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NO3's is expected to become profitable in the next 3 years.

Revenue vs Market: NO3's revenue (10.7% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: NO3's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NO3's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Noodles performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NO3 is currently unprofitable.

Growing Profit Margin: NO3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NO3 is unprofitable, but has reduced losses over the past 5 years at a rate of 11.5% per year.

Accelerating Growth: Unable to compare NO3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NO3 is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-36.8%).


Return on Equity

High ROE: NO3 has a negative Return on Equity (-5.2%), as it is currently unprofitable.


Next Steps

Financial Health

How is Noodles's financial position?


Financial Position Analysis

Short Term Liabilities: NO3's short term assets ($64.9M) exceed its short term liabilities ($50.1M).

Long Term Liabilities: NO3's short term assets ($64.9M) do not cover its long term liabilities ($319.2M).


Debt to Equity History and Analysis

Debt Level: NO3 is debt free.

Reducing Debt: NO3 has no debt compared to 5 years ago when its debt to equity ratio was 16.3%.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NO3 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NO3 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 9.8% per year.


Next Steps

Dividend

What is Noodles's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NO3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NO3's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NO3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NO3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NO3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Dave Boennighausen (41yo)

2.92yrs

Tenure

US$1,630,469

Compensation

Mr. Dave Boennighausen has been the Chief Executive Officer of Noodles & Company since June 14, 2017 and as its Director since August 21, 2015. Mr. Boennighausen served as Chief Executive Officer of Noodle ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.63M) is above average for companies of similar size in the German market ($USD712.37K).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dave Boennighausen
CEO & Director2.92yrsUS$1.63m0.074% $171.6k
Ken Kuick
Chief Financial Officer1.5yrsUS$820.86k0.0079% $18.4k
Thomas West
Executive Vice President of Operations2.67yrsUS$657.22k0.051% $118.7k
Melissa Heidman
Executive VP2.42yrsUS$687.26k0.0028% $6.5k
Kathy Lockhart
VP & Controller13.75yrsUS$391.65k0.060% $140.5k
Stacey Pool
Chief Marketing Officer0.42yrno datano data

2.5yrs

Average Tenure

50.5yo

Average Age

Experienced Management: NO3's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dave Boennighausen
CEO & Director2.92yrsUS$1.63m0.074% $171.6k
Andrew Taub
Independent Director9.42yrsUS$54.99kno data
Jeffrey Jones
Independent Chairman Of the Board0.67yrUS$171.59k0.10% $244.2k
Andrew Madsen
Independent Director2.67yrsUS$114.54k0.055% $128.4k
Robert Hartnett
Independent Director3.83yrsUS$132.72k0.25% $590.4k
Mary Egan
Independent Director2.67yrsUS$126.36k0.055% $128.4k
Elisa Schreiber
Independent Director0.42yrUS$22.92k0.028% $66.2k

2.7yrs

Average Tenure

51yo

Average Age

Experienced Board: NO3's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Noodles & Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Noodles & Company
  • Ticker: NO3
  • Exchange: DB
  • Founded: 1995
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$258.688m
  • Listing Market Cap: US$232.690m
  • Shares outstanding: 44.14m
  • Website: https://www.noodles.com

Number of Employees


Location

  • Noodles & Company
  • 520 Zang Street
  • Suite D
  • Broomfield
  • Colorado
  • 80021
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NDLSNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDJun 2013
NO3DB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2013

Biography

Noodles & Company develops and operates fast-casual restaurants in the United States. It offers cooked-to-order dishes, including noodles and pasta, soups, salads, and appetizers. As of December 31, 2019, the company operated 389 company-owned and 68 franchised restaurants in 29 states, and the District of Columbia. Noodles & Company was founded in 1995 and is based in Broomfield, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/01 00:09
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.