Noodles & Company (NDLS)

Piper Jaffray analyst, Nicole Miller Regan, maintained her Underweight rating on shares of Noodles & Co. (NASDAQ: NDLS) following the release of lower-than-expected preliminary results for 2Q16 and the announced departure of the company's longstanding Chairman and CEO, Mr. Kevin Reddy. She believes this executive transition might be the first step in a series of changes that could help reset the brand's operational performance.

The current CFO, Mr. Dave Boennighausen, was tapped to step in as interim-CEO while the company conducts an executive search. However, annual estimates move down on the lower-than-expected 2Q16 preliminary results and expectations for ongoing top-line pressures through the back half of the year. The price target moves to $7 on an 8x multiple on FY17E EV/EBITDA (vs. $8 on 8x FY16E EV/EBITDA) as the analyst looks forward a year towards recovery. The analyst continues to look for increased visibility into sustainably improving operating results and unit growth trends.

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 $10.36 yesterday.

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