Noodles & Company Gets Burned After Reporting Weak Fourth-Quarter Results
Investors pushed shares of Noodles & Company lower in after-hours trading on Wednesday after the fast-casual restaurant chain reported fourth-quarter earnings results that missed analyst estimates. For the quarter ended in December, Noodles & Company posted a profit of $0.11 per diluted share, which was a penny below what analysts' were expecting. Revenue increased 17.4% to $91.5 million in the quarter. However, that too, was below Wall Street forecasts for fourth-quarter revenue of $92.5 million.
Same-store sales growth of 4.3% was one bright spot in the results, as it marked the company's 18th consecutive quarter of comparable sales growth to date. In spite of that, CEO Kevin Reddy said severe winter weather would shave off $0.03 per diluted share on Noodles' first-quarter earnings.
This is Noodles & Company's third earnings announcement since going public last June 28. The restaurant's stock market debut was one of the biggest initial public offerings last year, with the stock doubling in value from $18 to $36.75 in its first day as a publicly traded company. Looking to unlock growth, Noodles & Company opened 12 new restaurants during the fourth quarter, including four franchise-owned restaurants.
Shares of Noodles & Company were trading around $37 a share as of 5:00 p.m.
The article Noodles & Company Gets Burned After Reporting Weak Fourth-Quarter Results originally appeared on Fool.com.Tamara Rutter and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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