NasdaqGS:NDLS

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$577.3m

Last Updated

2021/08/05 23:01 UTC

Data Sources

Company Financials +

Executive Summary

Noodles & Company develops and operates fast-casual restaurants. More Details


Snowflake Analysis

Adequate balance sheet with moderate 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: 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.


Market Performance


7 Day Return

5.1%

NDLS

-0.3%

US Hospitality

0.4%

US Market


1 Year Return

69.8%

NDLS

42.3%

US Hospitality

33.4%

US Market

Return vs Industry: NDLS exceeded the US Hospitality industry which returned 39.7% over the past year.

Return vs Market: NDLS exceeded the US Market which returned 33.2% over the past year.


Shareholder returns

NDLSIndustryMarket
7 Day5.1%-0.3%0.4%
30 Day1.5%-3.9%1.0%
90 Day4.4%-7.1%4.0%
1 Year69.8%69.8%42.8%42.3%35.5%33.4%
3 Year21.6%21.6%3.2%-0.7%63.2%53.0%
5 Year83.3%83.3%43.5%33.8%122.7%98.1%

Long-Term 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

Valuation

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

16.24x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: NDLS ($12.65) is trading above our estimate of fair value ($4.91)

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 (16.2x) compared to the US Hospitality industry average (3.4x).


Future Growth

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

44.7%

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 (9.1% 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 (20.1%).


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 is debt free.

Reducing Debt: NDLS has no debt compared to 5 years ago when its debt to equity ratio was 99.4%.


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 38% 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?

1.3yrs

Average management tenure


CEO

Dave Boennighausen (43 yo)

4.17yrs

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 increased whilst the company is unprofitable.


Leadership Team

Experienced Management: NDLS's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: NDLS's board of directors are considered experienced (3.9 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 3.2%.


Top Shareholders

Company Information

Noodles & Company's company bio, 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$577.273m
  • 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


Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/05 23:01
End of Day Share Price2021/08/05 00:00
Earnings2021/06/29
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.