Noodles & Co Net Losses Decreasing, Sales Increasing: Company

BROOMFIELD, CO – Shareholders of Broomfield-based Noodles and Company got a mix of good and bad news when the company announced its financial results for the second quarter ending July 3.

First, the good news, as released on the company website:

• The company's total revenue increased 4.1 percent in the second quarter of 2018 to $117.4 million, over the 2017 total of $112.8 million.
• Restaurant sales year-over-year increased 5.4 percent across the company. This may have been related to the timing of the Easter and 4th of July holidays, the company said.

But the company posted a net loss of $5.9 million, or $0.14 loss per diluted share, compared to a net loss of $1.8 million, the year before. The company said losses were higher because of a $3.4 million final payout after a data breach suit in 2016. They also had a settlement payout of $300,000 for a gift card lawsuit in Delaware, the company said. the company also closed seven restaurants, racking up $1.5 million in expenses, they said.

“We are very pleased with our second quarter results, which reflect increased momentum as we execute against our strategic roadmap, evidenced by system-wide comparable sales of 5.4%, our best quarterly comparable sales performance in six years., CEO Dave Boennighausen said in a statement. "We have been especially pleased with the performance of (new zuchinni-baser noodles) Zoodles, which is driving increased frequency from existing guests, and reintroducing the brand to lapsed and new users," he said.

For the first two quarters of 2018, the company reported a net loss of $9.5 million, on track to be much lower than the total net loss in fiscal year 2017 of $35.7 million and, in 2016, $71.7 million.

The company had 469 restaurants at the end of the second quarter 2018, of those, 404 are company-owned and 65 are franchise restaurants.

Related: Noodles & Co CFO Moves To QDOBA Mexican Eats

Related: Noodles & Co. Founder Selling $10M Boulder Mini-Farm

Image via Shutterstock

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