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NDLS

NoodlesNasdaqGS:NDLS Stock Report

Market Cap

US$453.7m

7D

-6.0%

1Y

32.5%

Updated

02 Dec, 2021

Data

Company Financials +
NDLS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

NDLS Stock Overview

Noodles & Company develops and operates fast-casual restaurants.

Noodles Competitors

Krispy Kreme

NasdaqGS:DNUT

US$2.2b

Denny's

NasdaqCM:DENN

US$846.8m

BJ's Restaurants

NasdaqGS:BJRI

US$684.9m

Ruth's Hospitality Group

NasdaqGS:RUTH

US$568.8m

Price History & Performance

Summary of all time highs, changes and price drops for Noodles
Historical stock prices
Current Share PriceUS$10.48
52 Week HighUS$13.55
52 Week LowUS$7.42
Beta1.39
1 Month Change-9.26%
3 Month Change-14.94%
1 Year Change32.49%
3 Year Change35.93%
5 Year Change122.98%
Change since IPO-71.48%

Recent News & Updates

Nov 24

Noodles & Company: Growth At A Very Reasonable Price

Noodles & Company released its Q3 results earlier this month, reporting quarterly revenue of $125.1 million, an 18% increase from the year-ago period. The company reported record average unit volumes in the period that are tracking very well against the company's long-term target, and enjoyed significant margin expansion on a two-year basis. While staffing was an issue and Noodles is not immune, the company noted that it believes the worst is behind it, with sales impacted by some reduced hours in Q3/Q4. With Noodles having one of the more attractive unit growth rates sector-wide and shrugging off the sector-wide margin pressures, pullbacks below $10.15 should provide low-risk buying opportunities.

Oct 25

Noodles & Company: On Track For An Earnings Breakout In 2022

Noodles & Company is one of the best-performing restaurant stocks year-to-date, up more than 64% and trouncing the performance of its benchmark and the S&P-500. The solid performance can be attributed to the successful turnaround we've seen, with digital sales continuing to increase, management guiding for strong unit growth, and continued labor efficiency. However, with Noodles trading at over 30x FY2022 earnings estimates at a share price of $13.00, I continue to see limited margin of safety at current levels. Having said that, given Noodles' strong results and improving outlook, I would view any pullbacks below $11.15 as low-risk buying opportunities.

Aug 12

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

NDLSUS HospitalityUS Market
7D-6.0%-6.7%-3.5%
1Y32.5%-0.8%19.4%

Return vs Industry: NDLS exceeded the US Hospitality industry which returned -0.8% over the past year.

Return vs Market: NDLS exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is NDLS's price volatile compared to industry and market?
NDLS volatility
NDLS Average Weekly Movement5.5%
Hospitality Industry Average Movement6.8%
Market Average Movement6.1%
10% most volatile stocks in US Market14.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: NDLS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NDLS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19958,400Dave Boennighausenhttps://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

How do Noodles's earnings and revenue compare to its market cap?
NDLS fundamental statistics
Market CapUS$453.70m
Earnings (TTM)US$4.58m
Revenue (TTM)US$467.52m

104.5x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NDLS income statement (TTM)
RevenueUS$467.52m
Cost of RevenueUS$385.29m
Gross ProfitUS$82.23m
ExpensesUS$77.64m
EarningsUS$4.58m

Last Reported Earnings

Sep 28, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin17.59%
Net Profit Margin0.98%
Debt/Equity Ratio54.2%

How did NDLS perform over the long term?

See historical performance and comparison

Valuation

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

104.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NDLS ($10.48) is trading above our estimate of fair value ($7.31)

Significantly Below Fair Value: NDLS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NDLS is poor value based on its PE Ratio (104.5x) compared to the US Hospitality industry average (23.2x).

PE vs Market: NDLS is poor value based on its PE Ratio (104.5x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: NDLS is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: NDLS is overvalued based on its PB Ratio (11.6x) compared to the US Hospitality industry average (3.2x).


Future Growth

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

40.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NDLS's forecast earnings growth (40.3% per year) is above the savings rate (2%).

Earnings vs Market: NDLS's earnings (40.3% per year) are forecast to grow faster than the US market (14.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NDLS's revenue (8.5% per year) is forecast to grow slower than the US market (10% 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?

53.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NDLS has a large one-off loss of $5.8M impacting its September 28 2021 financial results.

Growing Profit Margin: NDLS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NDLS has become profitable over the past 5 years, growing earnings by 53.1% per year.

Accelerating Growth: NDLS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NDLS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Hospitality industry (79.7%).


Return on Equity

High ROE: NDLS's Return on Equity (11.2%) is considered low.


Financial Health

How is Noodles's financial position?


Financial Position Analysis

Short Term Liabilities: NDLS's short term assets ($21.5M) do not cover its short term liabilities ($68.3M).

Long Term Liabilities: NDLS's short term assets ($21.5M) do not cover its long term liabilities ($235.1M).


Debt to Equity History and Analysis

Debt Level: NDLS's net debt to equity ratio (46.6%) is considered high.

Reducing Debt: NDLS's debt to equity ratio has reduced from 120.2% to 54.2% over the past 5 years.

Debt Coverage: NDLS's debt is well covered by operating cash flow (137.8%).

Interest Coverage: NDLS's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


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?

1.7yrs

Average management tenure


CEO

Dave Boennighausen (43 yo)

4.5yrs

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 ($USD2.01M) is about average for companies of similar size in the US market ($USD1.76M).

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


Leadership Team

Experienced Management: NDLS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: NDLS's board of directors are considered experienced (4.3 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 3%.


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$453.697m
  • Shares outstanding: 45.69m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 23:39
End of Day Share Price2021/12/02 00:00
Earnings2021/09/28
Annual Earnings2020/12/29


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.