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Noodles & Company Announces Fourth Quarter and Fiscal Year 2018 Financial Results
BROOMFIELD, Colo., March 14, 2019 (GLOBE NEWSWIRE) - Noodles & Company (Nasdaq: NDLS) today announced financial results for the fourth quarter and fiscal year ended January 1, 2019.
Key highlights for fiscal year 2018 compared to fiscal year 2017 include:
Total revenue increased 0.3% to $457.8 million from $456.5 million.
Comparable restaurant sales increased 3.7% system-wide, increased 3.4% for company-owned restaurants and increased 5.5% for franchise restaurants.
Net loss was $8.4 million, or $0.20 loss per diluted share, compared to net loss of $37.5 million and net loss attributable to common stockholders (after giving effect to the accretion of the preferred stock to its redemption value) of $45.4 million, or $1.20 loss per diluted share.(1)
Adjusted net income was $1.0 million, or $0.02 earnings per diluted share, compared to adjusted net loss of $0.9 million, or $0.02 loss per diluted share.
Restaurant contribution margin increased 80 basis points to 15.0%.
Adjusted EBITDA increased 9.1% to $33.4 million from $30.6 million.
One new company-owned restaurant opened in 2018.
Key highlights for the fourth quarter of 2018 compared to the same quarter of 2017 include:
Total revenue increased 0.4% to $113.2 million from $112.8 million.
Comparable restaurant sales increased 4.0% system-wide, increased 3.7% for company-owned restaurants and increased 5.3% for franchise restaurants.
Net income was approximately zero compared to a net loss of $0.5 million, or $0.01 loss per diluted share.(2)
Adjusted net income was $0.5 million, or $0.01 earnings per diluted share, compared to adjusted net income of $0.3 million, or $0.01 earnings per diluted share.
Restaurant contribution margin increased 10 basis points to 15.2%.
Adjusted EBITDA decreased 3.0% to $8.4 million from $8.6 million.
In 2018, the Company recorded a $0.4 million impairment charge related to one restaurant and incurred $4.1 million of charges related to the 19 restaurants closed in 2018, as well as ongoing costs of restaurants previously closed. In 2017, the Company recorded a $15.2 million impairment charge related to 34 restaurants and incurred $20.1 million of closure costs related to the 55 restaurants closed in the first quarter of 2017 and on-going costs related to restaurants closed in previous years. Additionally, in 2018, the Company recognized a charge of $3.4 million for the final settlement related to data breach liabilities, and a $0.3 million charge for a litigation settlement related to a Delaware gift card matter.
In the fourth quarter of 2018, the Company incurred $0.6 million of closure costs related to the seven restaurants closed in the fourth quarter of 2018, most of which were at or approaching the expiration of their leases, as well as ongoing costs from restaurants closed in previous periods. The Company did not identify any restaurants as impaired in the fourth quarter of 2018. In the fourth quarter of 2017, the Company recorded a $0.6 million impairment charge related to three restaurants and incurred $0.9 million related to ongoing costs of restaurants previously closed.
Dave Boennighausen, Chief Executive Officer of Noodles & Company remarked, “Our strong fourth quarter results, which included sustained comparable sales growth momentum of 4.0% system-wide, is further evidence that our strategic initiatives are working. Our zucchini noodle introduced in 2018 continues to resonate with guests and contribute meaningfully to product mix and average check. Additionally, off-premise sales grew to 54% of sales in the fourth quarter, particularly driven by digital, which grew 450 bps from prior year to 16% of sales. Finally, we continue to make progress in the consistency of our execution, with a continued decrease in turnover seen in 2018 alongside a meaningful increase in management tenure at all levels.”
Paul Murphy, Executive Chairman of Noodles & Company added, “We continue to be pleased with the trajectory of the business and are extremely excited about 2019 and beyond. We have maintained momentum into 2019, with our initiatives continuing to drive positive comparable sales despite the historically severe weather that has hampered the majority of our major markets. The organization will continue to innovate around the core strengths of the brand, our real estate pipeline is in great shape, and our liquidity profile gives us the flexibility to continue to invest in the growth of Noodles & Company.”
The following information was filed by Noodles Co (NDLS) on Thursday, March 14, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.