Analyst Joshua Long of Stephens maintained a Hold rating on Noodles & Co (NDLS – Research Report), with a price target of $4.00.
Joshua Long’s Hold rating for Noodles & Co’s stock (NDLS) is based on a range of factors. The company’s third quarter results for 2023 exceeded expectations in terms of same-store sales, revenue, restaurant level margins, and adjusted earnings per share (EPS). However, Long predicts a sequential slowdown in same-store sales in the fourth quarter, due to the industry reverting to standard spending patterns and the quarter being a seasonally slower period for Noodles’ business model, compared to the third quarter.
Despite this, Long is generally upbeat about the company’s strategies to boost sales, including consumer and brand research, price optimization studies, new culinary developments, digital technology tools, and a focus on expanding the under-served catering sales channel. These initiatives are backed by endeavours to improve cash flow and return capital to shareholders, demonstrated by the near completion of a $5 million repurchase authorization in the third quarter of 2023. Despite maintaining an equal weight rating, Long has slightly reduced the price target to $4, based on an unaltered ~8x multiple on a now moderated FY24E EBITDA estimate.
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Noodles & Co (NDLS) Company Description:
Noodles & Co. develops and operates fast-casual restaurants which offers lunch and dinner meals. It serves cooked-to-order dishes, which include noodles and pasta, soups, salads, sandwiches, and appetizers. The company was founded by Aaron Kennedy in 1995 and is headquartered in Broomfield, CO.
Read More on NDLS:
- Noodles & Company price target lowered to $4 from $5 at Stephens
- Noodles & Company reports Q3 EPS ,4c consensus (1c)
- Noodles & Company Announces Third Quarter 2023 Financial Results
- NDLS Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Noodles & Company to Announce Third Quarter 2023 Results on November 7, 2023
