Jefferies Remains Sidelined on Noodles & Company (NDLS) Following 2Q - PT to $7

August 5, 2016 10:25 AM EDT
Get Alerts NDLS Hot Sheet
Price: $4.68 +0.65%

Rating Summary:
    2 Buy, 11 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Jefferies maintained a Hold rating on Noodles & Company (NASDAQ: NDLS), and cut the price target to $7.00 (from $8.50), following the company's 2Q earnings report. New store performance represents the most significant headwind facing the company, as new stores volumes are only 80% of the system avg, (vs previous levels of 85-90%). Management aims to re-focus on operations in these new stores and to cut unit growth, with a strict focus on only taking the best available sites that have reasonable lease terms.

Analyst Andy Barish commented, "As preannounced, SSS -1%, as Co was impacted by broader industry spending slowdown, as well as Co-specific challenges in several key markets. The oper. turnaround flips to a new chapter under interim CEO Dave Boennighausen, with renewed focus on cost controls, refining the operating model & narrowing the investment focus on the most productive markets. As expected, ’16 guides down, but mgmt offered a refreshing outlook on ’17 with a notable cut to unit growth."

For an analyst ratings summary and ratings history on Noodles & Co. click here. For more ratings news on Noodles & Co. click here.

Shares of Noodles & Co. closed at $7.25 yesterday.

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