| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 3/6 |
| Past Performance | 0/6 |
| Financial Health | 2/6 |
| Dividends | 0/6 |
NDLS Overview
Noodles & Company develops and operates fast-casual restaurants.
Noodles Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$12.81 |
| 52 Week High | US$6.25 |
| 52 Week Low | US$13.55 |
| Beta | 1.46 |
| 1 Month Change | 0.63% |
| 3 Month Change | 2.97% |
| 1 Year Change | 78.16% |
| 3 Year Change | 4.40% |
| 5 Year Change | 171.40% |
| Change since IPO | -65.14% |
Recent News & Updates
Noodles & Company: Another Solid Quarter For This Turnaround Story
Noodles & Company had an incredible quarter in Q2, posting revenue growth of 4% on a two-year basis, and strong growth in digital sales, at 56% of total revenue. Meanwhile, the company reported record annual unit volume of ~$1.35 million, helping the company to report a top and bottom-line beat in the quarter. While Noodles still isn't cheap at ~29x FY2022 earnings estimates, the valuation is improving, especially if the company can meet its targets. So, while I don't see the stock as a Buy at current levels, I would view any dips below $10.10 as low-risk buying opportunities.
Shareholder Returns
| NDLS | US Hospitality | US Market | |
|---|---|---|---|
| 7D | 5.4% | 6.2% | 2.0% |
| 1Y | 78.2% | 36.1% | 32.8% |
Return vs Industry: NDLS exceeded the US Hospitality industry which returned 36.1% over the past year.
Return vs Market: NDLS exceeded the US Market which returned 32.8% over the past year.
Price Volatility
| NDLS volatility | |
|---|---|
| NDLS Beta | 1.46 |
| Industry Beta | 1.73 |
| Market Beta | 1 |
Stable Share Price: NDLS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: NDLS's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1995 | 8,400 | Dave Boennighausen | https://www.noodles.com |
Noodles & Company develops and operates fast-casual restaurants. It offers cooked-to-order dishes, including noodles and pasta, soups, salads, and appetizers. As of December 29, 2020, the company operated 378 company-owned and 76 franchised restaurants in 29 states, and the District of Columbia.
Noodles Fundamentals Summary
| NDLS fundamental statistics | |
|---|---|
| Market Cap | US$584.57m |
| Earnings (TTM) | -US$240.00k |
| Revenue (TTM) | US$448.38m |
1.3x
P/S Ratio-2.4kx
P/E RatioIs NDLS overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| NDLS income statement (TTM) | |
|---|---|
| Revenue | US$448.38m |
| Cost of Revenue | US$372.78m |
| Gross Profit | US$75.60m |
| Expenses | US$75.84m |
| Earnings | -US$240.00k |
Last Reported Earnings
Jun 29, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.0053 |
| Gross Margin | 16.86% |
| Net Profit Margin | -0.053% |
| Debt/Equity Ratio | 105.1% |
How did NDLS perform over the long term?
See historical performance and comparisonValuation
Is Noodles undervalued compared to its fair value and its price relative to the market?
16.49x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: NDLS ($12.81) is trading above our estimate of fair value ($1.37)
Significantly Below Fair Value: NDLS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NDLS is unprofitable, so we can't compare its PE Ratio to the US Hospitality industry average.
PE vs Market: NDLS is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NDLS's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NDLS is overvalued based on its PB Ratio (16.5x) compared to the US Hospitality industry average (3.6x).
Future Growth
How is Noodles forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
44.8%
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 (2%).
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's is expected to become profitable in the next 3 years.
Revenue vs Market: NDLS's revenue (8.5% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: NDLS's revenue (8.5% 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
Past Performance
How has Noodles performed over the past 5 years?
45.2%
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 45.2% 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 (80.8%).
Return on Equity
High ROE: NDLS has a negative Return on Equity (-0.68%), as it is currently unprofitable.
Financial Health
How is Noodles's financial position?
Financial Position Analysis
Short Term Liabilities: NDLS's short term assets ($35.0M) do not cover its short term liabilities ($70.8M).
Long Term Liabilities: NDLS's short term assets ($35.0M) do not cover its long term liabilities ($254.0M).
Debt to Equity History and Analysis
Debt Level: NDLS's debt to equity ratio (105.1%) is considered high.
Reducing Debt: NDLS's debt to equity ratio has increased from 99.4% to 105.1% 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: Whilst unprofitable NDLS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: NDLS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39.8% per year.
Dividend
What is Noodles's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
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.
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 NDLS's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
Dave Boennighausen (43 yo)
4.25yrs
Tenure
US$2,010,465
Compensation
Mr. Dave Boennighausen has been the Chief Executive Officer of Noodles & Company since June 14, 2017 and as its Director since August 21, 2015. Mr. Boennighausen served as Chief Executive Officer of Noodle...
CEO Compensation Analysis
Compensation vs Market: Dave's total compensation ($USD2.01M) is about average for companies of similar size in the US market ($USD1.68M).
Compensation vs Earnings: Dave's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: NDLS's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
Experienced Board: NDLS's board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NDLS insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.
Top Shareholders
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
- Market Cap: US$584.574m
- Shares outstanding: 45.63m
- Website: https://www.noodles.com
Number of Employees
Location
- Noodles & Company
- 520 Zang Street
- Suite D
- Broomfield
- Colorado
- 80021
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 23:02 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/29 |
| Annual Earnings | 2020/12/29 |
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.