Noodles & Co (NAS:NDLS)
$ 1.17 -0.04 (-3.28%) Market Cap: 53.40 Mil Enterprise Value: 346.57 Mil PE Ratio: 0 PB Ratio: 5.62 GF Score: 54/100

Q2 2024 Noodles & Co Earnings Call Transcript

Aug 07, 2024 / 08:30PM GMT
Release Date Price: $1.46 (-9.32%)

Key Points

Positve
  • 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.
Negative
  • 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.
Operator

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.

Michael Hynes
Noodles & Co - Chief Financial Officer

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

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