Noodles & Co. (NDLS) Non Deal Roadshow Highlights Kitchen of the Future, SunTrust Raises EPS

SunTrust analyst Jake Bartlett reiterated a Buy rating and $12.00 price target on Noodles & Co. (NASDAQ: NDLS) after hosting investor meetings with the CEO, Dave Boennighausen, and CFO, Ken Kuick.

The analyst believes the company can drive significant margin expansion with its Kitchen of the Future initiative starting in 1Q20 (~250bps over 2.5 years), maintain solid SSS of ~+3.0% in '20-'21 (driven by digital marketing, menu innovation and catering) and re-accelerate development (driven by the potential of ~40% ROI on new units and an effort to rebuild a pipeline of new franchisees). He went on to state "We are maintaining 4Q19 ests., increasing '20 ests and are maintaining our $12 PT (+108% upside from current levels)". "We expect multiple SSS drivers to sustain ~+3.0% SSS through '21: NDLS' sales initiatives include improved digital marketing, menu innovation and catering (expectations are low for delivery's incremental contribution)".

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 $5.75 yesterday.

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