Noodles & Company (NASDAQ: NDLS) reported Q4 EPS of $0.01, $0.02 worse than the analyst estimate of $0.03. Revenue for the quarter came in at $113.2 million versus the consensus estimate of $113.76 million.

• Total revenue increased 0.4% to $113.2 million from $112.8 million.
• Comparable restaurant sales increased 4.0% system-wide, increased 3.7% for company-owned restaurants and increased 5.3% for franchise restaurants.
• Net income was approximately zero compared to a net loss of $0.5 million, or $0.01 loss per diluted share.(2)
• Adjusted net income was $0.5 million, or $0.01 earnings per diluted share, compared to adjusted net income of $0.3 million, or $0.01 earnings per diluted share.
• Restaurant contribution margin increased 10 basis points to 15.2%.
• Adjusted EBITDA decreased 3.0% to $8.4 million from $8.6 million.

Dave Boennighausen, Chief Executive Officer of Noodles & Company remarked, “Our strong fourth quarter results, which included sustained comparable sales growth momentum of 4.0% system-wide, is further evidence that our strategic initiatives are working. Our zucchini noodle introduced in 2018 continues to resonate with guests and contribute meaningfully to product mix and average check. Additionally, off-premise sales grew to 54% of sales in the fourth quarter, particularly driven by digital, which grew 450 bps from prior year to 16% of sales. Finally, we continue to make progress in the consistency of our execution, with a continued decrease in turnover seen in 2018 alongside a meaningful increase in management tenure at all levels.”

Paul Murphy, Executive Chairman of Noodles & Company added, “We continue to be pleased with the trajectory of the business and are extremely excited about 2019 and beyond. We have maintained momentum into 2019, with our initiatives continuing to drive positive comparable sales despite the historically severe weather that has hampered the majority of our major markets. The organization will continue to innovate around the core strengths of the brand, our real estate pipeline is in great shape, and our liquidity profile gives us the flexibility to continue to invest in the growth of Noodles & Company.”

GUIDANCE:

Noodles & Company sees FY2019 revenue of $462-470 million, versus the consensus of $463.69 million.

• Approximately five to nine new restaurants system-wide, including four to six company locations;
• Comparable restaurant sales of 2.0% to 4.0%;
• Restaurant contribution margin of 15.2% to 16.5%;
• Adjusted EBITDA of $36.0 million to $40.0 million;
• Adjusted diluted EPS of $0.06 to $0.15; and
• Capital expenditures of $24.0 million to $30.0 million

For earnings history and earnings-related data on Noodles & Company (NDLS) click here.