Noodles & Co beats by $0.02, beats on revs; comps -0.9%; guides FY18 EPS below consensus, revs below consensus
- Reports Q4 (Dec) earnings of $0.01 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of ($0.01); revenues fell 12.8% year/year to $112.77 mln vs the $111.05 mln Capital IQ Consensus.
- The revenue decline was due primarily to the closure of 55 restaurants during 1Q17.
- Restaurant contribution margin increased 320 basis points to 15.1%.
- Comparable restaurant sales decreased -0.9% system-wide, decreased -0.9% for company-owned restaurants and decreased -0.9% for franchise restaurants.
- Co issues downside guidance for FY18, sees EPS of $(0.01)-0.03, excluding non-recurring items, vs. $0.04 Capital IQ Consensus Estimate; sees FY18 revs of $440-450 mln vs. $461.1 mln Capital IQ Consensus Estimate.
- Co expects modestly positive comparable restaurant sales in 2018 and guides to restaurant contribution margin of 14.5% to 15.0%.