company background image
NDLS

Noodles NasdaqGS:NDLS Stock Report

Last Price

US$4.95

Market Cap

US$226.2m

7D

5.5%

1Y

-59.7%

Updated

04 Oct, 2022

Data

Company Financials +
NDLS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

NDLS Stock Overview

Noodles & Company, a restaurant concept company, develops and operates fast-casual restaurants.

Rewards

Trading at 46.1% below our estimate of its fair value

Earnings are forecast to grow 115.96% per year

Trading below our calculated fair Price-To-Sales ratio

Risk Analysis

Has less than 1 year of cash runway


Noodles Competitors

Nathan's Famous

NasdaqGS:NATH

US$259.1m

El Pollo Loco Holdings

NasdaqGS:LOCO

US$325.6m

Potbelly

NasdaqGS:PBPB

US$137.8m

Meritage Hospitality Group

OTCPK:MHGU

US$133.3m

Price History & Performance

Summary of all time highs, changes and price drops for Noodles
Historical stock prices
Current Share PriceUS$4.95
52 Week HighUS$13.44
52 Week LowUS$4.25
Beta1.54
1 Month Change8.08%
3 Month Change-2.94%
1 Year Change-59.69%
3 Year Change-5.71%
5 Year Change3.67%
Change since IPO-86.53%

Recent News & Updates

Sep 02
Noodles & Company (NASDAQ:NDLS) Shares Could Be 46% Below Their Intrinsic Value Estimate

Noodles & Company (NASDAQ:NDLS) Shares Could Be 46% Below Their Intrinsic Value Estimate

Does the September share price for Noodles & Company ( NASDAQ:NDLS ) reflect what it's really worth? Today, we will...

Aug 03
Noodles (NASDAQ:NDLS) Has A Somewhat Strained Balance Sheet

Noodles (NASDAQ:NDLS) Has A Somewhat Strained Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Jul 27

Noodles & Company GAAP EPS of $0.03 misses by $0.04, revenue of $131.1M beats by $0.19M

Noodles & Company press release (NASDAQ:NDLS): Q2 GAAP EPS of $0.03 misses by $0.04. Revenue of $131.1M (+4.4% Y/Y) beats by $0.19M. Comparable restaurant sales increased 5.1% system-wide, comprised of a 5.1% increase at company-owned restaurants and a 5.3% increase at franchise restaurants. Company Average Unit Volumes (“AUV”) of $1.42 million represented a 5.3% increase compared to the second quarter of 2021 and an 18.3% increase versus the second quarter of 2019. Adjusted EBITDA(1) was $11.2 million, a decrease of $2.6 million compared to the second quarter of 2021. Adjusted net income(1) was $2.4 million, or $0.05 per diluted share compared to adjusted net income of $6.0 million, or $0.13 per diluted share, in the second quarter of 2021.

Shareholder Returns

NDLSUS HospitalityUS Market
7D5.5%0.6%1.0%
1Y-59.7%-32.1%-20.0%

Return vs Industry: NDLS underperformed the US Hospitality industry which returned -32.1% over the past year.

Return vs Market: NDLS underperformed the US Market which returned -20% over the past year.

Price Volatility

Is NDLS's price volatile compared to industry and market?
NDLS volatility
NDLS Average Weekly Movement8.8%
Hospitality Industry Average Movement7.3%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: NDLS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: NDLS's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19958,000Dave Boennighausenhttps://www.noodles.com

Noodles & Company, a restaurant concept company, develops and operates fast-casual restaurants. It offers cooked-to-order dishes, including noodles and pasta, soups, salads, and appetizers. As of December 28, 2021, the company operated 448 restaurants in 29 states, which included 372 company locations and 76 franchise locations.

Noodles Fundamentals Summary

How do Noodles's earnings and revenue compare to its market cap?
NDLS fundamental statistics
Market CapUS$226.22m
Earnings (TTM)-US$5.12m
Revenue (TTM)US$483.56m

0.5x

P/S Ratio

-44.1x

P/E Ratio

Is NDLS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NDLS income statement (TTM)
RevenueUS$483.56m
Cost of RevenueUS$407.24m
Gross ProfitUS$76.31m
Other ExpensesUS$81.44m
Earnings-US$5.12m

Last Reported Earnings

Jun 28, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.11
Gross Margin15.78%
Net Profit Margin-1.06%
Debt/Equity Ratio89.3%

How did NDLS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is NDLS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NDLS?

Other financial metrics that can be useful for relative valuation.

NDLS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA18x
PEG Ration/a

Price to Sales Ratio vs Peers

How does NDLS's PS Ratio compare to its peers?

NDLS PS Ratio vs Peers
The above table shows the PS ratio for NDLS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.9x
NATH Nathan's Famous
2.1xn/aUS$259.1m
LOCO El Pollo Loco Holdings
0.8x3.9%US$325.6m
PBPB Potbelly
0.3x7.2%US$137.8m
MHGU Meritage Hospitality Group
0.2xn/aUS$133.3m
NDLS Noodles
0.5x9.9%US$226.2m

Price-To-Sales vs Peers: NDLS is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.9x).

Price to Earnings Ratio vs Industry

How does NDLS's PE Ratio compare vs other companies in the US Hospitality Industry?

Price-To-Sales vs Industry: NDLS is good value based on its Price-To-Sales Ratio (0.5x) compared to the US Hospitality industry average (1.5x)

Price to Sales Ratio vs Fair Ratio

What is NDLS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NDLS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: NDLS is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

Share Price vs Fair Value

What is the Fair Price of NDLS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NDLS ($4.95) is trading below our estimate of fair value ($9.19)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Discover undervalued companies

Future Growth

How is Noodles forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE

116.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDLS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: NDLS is expected to become profitable in the next 3 years.

Revenue vs Market: NDLS's revenue (9.9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NDLS's revenue (9.9% 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 NDLS's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Noodles performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE

60.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NDLS is currently unprofitable.

Growing Profit Margin: NDLS is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NDLS is unprofitable, but has reduced losses over the past 5 years at a rate of 60.4% per year.

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

Earnings vs Industry: NDLS is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (36.2%).

Return on Equity

High ROE: NDLS has a negative Return on Equity (-14.69%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Noodles's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NDLS's short term assets ($20.5M) do not cover its short term liabilities ($70.0M).

Long Term Liabilities: NDLS's short term assets ($20.5M) do not cover its long term liabilities ($233.7M).

Debt to Equity History and Analysis

Debt Level: NDLS's net debt to equity ratio (84.1%) is considered high.

Reducing Debt: NDLS's debt to equity ratio has reduced from 137.4% to 89.3% over the past 5 years.

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: NDLS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NDLS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

Discover healthy companies

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Noodles Dividend Yield vs Market
How does Noodles dividend yield compare to the market?
SegmentDividend Yield
Company (Noodles)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Hospitality)2.0%
Analyst forecast in 3 Years (Noodles)n/a

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

High Dividend: Unable to evaluate NDLS'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 NDLS's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NDLS has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.5yrs

Average management tenure

CEO

Dave Boennighausen (44 yo)

7.17yrs

Tenure

US$2,408,743

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

Dave Boennighausen's Compensation vs Noodles Earnings
How has Dave Boennighausen's remuneration changed compared to Noodles's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 28 2022n/an/a

-US$5m

Mar 29 2022n/an/a

-US$787k

Dec 28 2021US$2mUS$615k

US$4m

Sep 28 2021n/an/a

US$5m

Jun 29 2021n/an/a

-US$240k

Mar 30 2021n/an/a

-US$19m

Dec 29 2020US$2mUS$565k

-US$23m

Sep 29 2020n/an/a

-US$21m

Jun 30 2020n/an/a

-US$16m

Mar 31 2020n/an/a

-US$2m

Dec 31 2019US$2mUS$549k

US$2m

Oct 01 2019n/an/a

US$3m

Jul 02 2019n/an/a

-US$344k

Apr 02 2019n/an/a

-US$7m

Jan 01 2019n/an/a

-US$8m

Oct 02 2018n/an/a

-US$9m

Jul 03 2018n/an/a

-US$18m

Apr 03 2018n/an/a

-US$21m

Jan 02 2018n/an/a

-US$45m

Oct 03 2017n/an/a

-US$90m

Jul 04 2017n/an/a

-US$92m

Apr 04 2017n/an/a

-US$97m

Jan 03 2017US$727kUS$388k

-US$72m

Sep 27 2016n/an/a

-US$31m

Jun 28 2016n/an/a

-US$31m

Mar 29 2016n/an/a

-US$13m

Dec 29 2015US$624kUS$333k

-US$14m

Compensation vs Market: Dave's total compensation ($USD2.41M) is above average for companies of similar size in the US market ($USD1.74M).

Compensation vs Earnings: Dave's compensation has increased whilst the company is unprofitable.

Leadership Team

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

Board Members

Experienced Board: NDLS's board of directors are considered experienced (5.1 years average tenure).

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

NasdaqGS:NDLS Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
26 Sep 22BuyUS$338,072Mill Road Capital Management LLCCompany74,121US$4.60
06 Sep 22BuyUS$1,064,626Mill Road Capital Management LLCCompany232,881US$4.61
27 Jul 22BuyUS$511,458Mill Road Capital Management LLCCompany113,371US$4.59
14 Jul 22BuyUS$680,148Mill Road Capital Management LLCCompany145,656US$4.67
05 Jul 22BuyUS$1,425,626Mill Road Capital Management LLCCompany304,719US$4.78
11 Mar 22BuyUS$9,255Thomas WestIndividual1,500US$6.17
08 Mar 22BuyUS$17,357Thomas WestIndividual3,000US$5.79
03 Mar 22BuyUS$50,071Dave BoennighausenIndividual7,485US$6.69
02 Mar 22BuyUS$10,063Shawn TaylorIndividual1,511US$6.66
28 Feb 22BuyUS$199,981Jeffrey JonesIndividual29,000US$6.90
03 Dec 21BuyUS$9,354Shawn TaylorIndividual890US$10.51
04 Nov 21BuyUS$9,836Shawn TaylorIndividual830US$11.85
15 Oct 21SellUS$668,274Mill Road Capital Management LLCCompany50,909US$13.30

Ownership Breakdown

What is the ownership structure of NDLS?
Owner TypeNumber of SharesOwnership Percentage
General Public2,037,8414.5%
Hedge Funds3,000,0006.6%
Individual Insiders4,604,78210.1%
VC/PE Firms5,590,09912.2%
Institutions30,468,55866.7%

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

Top Shareholders

Top 25 shareholders own 84.28% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
15.04%
FMR LLC
6,875,208$34.0m0.28%no data
12.23%
Mill Road Capital Management LLC
5,590,099$27.7m16.03%10.67%
6.56%
Woodson Capital Management, LP
3,000,000$14.9m-3.23%2.3%
6.45%
Timothy Riley
2,950,000$14.6m0%no data
5.37%
BlackRock, Inc.
2,454,046$12.1m-2%no data
4.77%
Emerald Advisers, LLC
2,179,599$10.8m0%0.28%
4.31%
The Vanguard Group, Inc.
1,969,422$9.7m-1.39%no data
3.83%
Plaisance Capital LLC
1,750,780$8.7m63.3%13.14%
2.58%
Royce & Associates, LP
1,177,018$5.8m33.45%0.04%
2.33%
Wasatch Advisors Inc
1,065,660$5.3m41.92%0.03%
2.32%
Kennedy Capital Management, Inc.
1,058,647$5.2m19.7%0.15%
2.22%
Silvercrest Asset Management Group LLC
1,013,328$5.0m-4.27%0.04%
2.1%
Rip Road Capital Partners LP
961,805$4.8m-41.88%5.96%
1.8%
Prospector Partners, LLC
822,733$4.1m0%0.62%
1.76%
Angela Riley
805,000$4.0m0%no data
1.55%
Geode Capital Management, LLC
707,886$3.5m0.25%no data
1.41%
State Street Global Advisors, Inc.
646,154$3.2m-0.16%no data
1.31%
Dimensional Fund Advisors LP
598,366$3.0m-0.36%no data
1.3%
AWM Investment Company Inc
595,803$2.9m9.16%0.43%
1%
Punch & Associates Investment Management, Inc.
457,500$2.3m8.93%0.15%
0.95%
Millrace Asset Group
436,272$2.2m0%2%
0.93%
GW&K Investment Management, LLC
423,485$2.1m-2.2%0.02%
0.74%
Northern Trust Global Investments
339,945$1.7m-1.99%no data
0.7%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
321,266$1.6m-73.57%no data
0.7%
D. E. Shaw & Co., L.P.
317,684$1.6m-12.17%no data

Company Information

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

Key Information

  • Name: Noodles & Company
  • Ticker: NDLS
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Restaurants
  • Sector: Consumer Services
  • Implied Market Cap: US$226.221m
  • Shares outstanding: 45.70m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/28
Annual Earnings2021/12/28


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.