Wedbush maintained a Neutral rating on Noodles & Co. (NASDAQ: NDLS) and reduced its price target to $21.00 (from $30.00). Analyst Nick Setyan believes questions remain
regarding long-term guidance sustainability.

"Management lowered FY14 guidance to flat EPS growth from 25% previously, on SSS growth that is now expected to be flat vs. previous guidance of 2.5-3.0%. The lowered guidance was attributed to weakness in the Mid-Atlantic/DC region and softness in middle-class consumer spending. Despite the lowered 2014 guidance, mgmt. expects to return to 25% EPS growth in 2015 pending a reacceleration in comps to the 2.5-3.0% long-term guidance range. Comp reacceleration is predicated on an anticipated 1-1.5% lift from catering, and we remain cautious such sales levels can be achieved and sustained as catering expands to newer and more suburban markets," said Setyan.

"Nevertheless, given expected 2% pricing, continued implementation of the dinner daypart initiative, and the expected contribution from 16 IN units acquired in Q3, we believe 2014 guidance may prove realistic," he added.

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 $25.21 yesterday.