Q2 2024 Noodles & Co Earnings Call Transcript
Key Points
- Noodles & Co (NDLS) achieved positive system-wide same-store sales growth of 2% during the second quarter.
- Restaurant contribution margin improved by 70 basis points compared to 2023, aided by strong cost management.
- Digital sales remain strong, accounting for 55% of total sales, with 26% of sales from loyalty members.
- Catering sales grew significantly, with system-wide sales up 42% versus last year.
- The company has made substantial progress on its five key strategic priorities, including operations excellence and menu transformation.
- Company comp traffic during the second quarter declined by 1.1%.
- Net loss for the second quarter was $13.6 million, significantly higher than the $1.3 million loss in the same period last year.
- July comp restaurant sales were down 3.2%, indicating a challenging consumer environment.
- G&A expenses increased to $13.6 million from $12.5 million in 2023, primarily due to severance and executive transition costs.
- The company identified approximately 20 underperforming restaurants that may be closed before the end of their lease terms, indicating operational challenges.
Good afternoon, and welcome to today's Noodles & Company's Second Quarter 2024 Earnings Conference Call. (Operator Instructions). As a reminder, this call is being recorded. I would now like to introduce Noodles & Company's Chief Financial Officer, Mike Hynes.
Thank you, and good afternoon, everyone. Welcome to our second-quarter 2024 earnings call. Here with me this afternoon is Drew Madsen, our Chief Executive Officer. I'd like to start by going over a few regulatory matters. During the call, we may make forward-looking statements regarding future events or the future financial performance of the company.
Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements are only projections, and actual events or results could differ from those projections due to a number of risks and uncertainties, including those referred to in this afternoon's news release and the cautionary statement in the company's
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
