Noodles & Co. (NDLS) Reports Q4 Loss, Lags Revenue Estimates

Financial Performance - Noodles & Co. reported a quarterly loss of $0.15 per share, which was worse than the Zacks Consensus Estimate of a loss of$0.13, and compared to a loss of $0.07 per share a year ago, indicating a decline in performance [1] - The company posted revenues of$121.77 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.27%, and down from 124.32 million year-over-year [2] - Over the last four quarters, Noodles & Co. has surpassed consensus EPS estimates only two times and has not beaten consensus revenue estimates [2] Stock Performance - Noodles & Co. shares have increased approximately 131.5% since the beginning of the year, contrasting with a decline of -0.7% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is -0.08 on revenues of $120.81 million, and for the current fiscal year, it is -$0.28 on revenues of $498.24 million [7] Earnings Outlook - The estimate revisions trend for Noodles & Co. is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3][4] Industry Context - The Retail - Restaurants industry, to which Noodles & Co. belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Dave & Buster's, is expected to report a quarterly earnings decline of -32% year-over-year, with revenues projected to decrease by 8.2% [9]