A slight decrease in same-store sales dragged down profits at 410-unit Noodles & Company for the second quarter ended July 1.
Revenue at the Broomfield, Colo.-based fast-casual operator rose 11.5 percent, to $99.5 million, from $89.2 million in the same quarter last year. Profits declined to $3.7 million, from $4 million the previous year.
Kevin Reddy, chairman and chief executive officer of Noodles & Company, expressed disappointment in the chain’s results, but said his team had “made significant progress with regard to long-term investments in key initiatives, including catering and local relationship marketing. Our team's efforts and initiatives are resonating with guests, resulting in a solid finish to the second quarter and a positive start to the third quarter, as our comparable restaurants sales have increased to 1.3 percent quarter to date.”
The company opened 16 new restaurants during the quarter, 12 of which are corporate units and four of which are franchised.
2Q NET LOSS
Result: $3.7 million, or 12 cents per share% Decrease: 7.5% (from $4 million, or 13 cents per share)
2Q REVENUE
Result: $99.5 million% Increase: 11.5% (from $89.2 million)
2Q SAME-STORE SALES
% Decrease corporate units: 0.6%
% Decrease franchised units: 1.2%
Source: Company report
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