Noodles & Company Releases Preliminary Unaudited Fiscal Third Quarter 2020 Sales Results
October 01 2020 - 9:00AM
Noodles & Company (Nasdaq: NDLS) today released
preliminary unaudited sales results for the third fiscal quarter
ended September 29, 2020.
“I continue to be proud of the outstanding
efforts of our teams and the resiliency of the Noodles &
Company brand that has been demonstrated during the past several
months,” said Dave Boennighausen, Chief Executive Officer. “Our
return to positive comparable sales, aided by impressive digital
growth, is evidence of our strong brand positioning to meet the
needs of today's consumer for great tasting healthy food served
conveniently where and when guests want it. We also took steps
during the third quarter to further strengthen our balance sheet
during the quarter and have set our business up for accelerated new
unit growth.”
Boennighausen concluded "I am particularly proud
of our sales performance in this environment given that only in the
past few days have many of our restaurants re-opened for
in-restaurant dining to complement our off-premise and patio dining
efforts. As of September 30th, over 90% of our restaurants have
opened their dining rooms."
The cadence of comparable restaurant sales and
average unit volumes during the third quarter are as set forth
below. Company-owned restaurants were closed July 4 and
5, 2020 in appreciation of our teams’ efforts during the pandemic.
All restaurants were open during that time frame in 2019,
negatively impacting comparable restaurant sales during the same
period in 2020:
Comparable Restaurant Sales |
|
4 Weeks EndedJuly 28, 2020
(1) |
|
4 Weeks Ended August 25,
2020 |
|
5 Weeks Ended September 29,
2020 |
Company-owned |
|
(8.4)% |
|
(4.6)% |
|
1.1% |
Franchise |
|
(7.2)% |
|
(5.1)% |
|
(3.2)% |
System-wide |
|
(8.2)% |
|
(4.7)% |
|
0.4% |
_____________________
(1) Company-owned restaurants were
closed July 4 and July 5, 2020.
Expected Fiscal Third Quarter 2020 Sales
Highlights
-
Full third quarter system-wide comparable sales decreased 3.8%,
comprised of a 3.6% decrease at company-owned restaurants and a
5.0% decrease at franchise restaurants.
-
Full third quarter company-owned average unit volumes were flat
versus prior year at $1.2 million.
-
Company-owned comparable sales increased 1.1% during the five week
fiscal period ending September 29, 2020 compared to the prior
year.
-
Company-owned average unit volumes in the five week fiscal period
ending September 29, 2020 increased 2.4% versus prior year to $1.2
million.
-
Digital sales during the fiscal September period increased 146%
year over year.
-
Preliminary total revenue of approximately $106.3 million,
representing a $12.0 million decrease vs. prior year due to fewer
company operating weeks from prior refranchising activities as well
as temporary closures during the COVID-19 pandemic.
These expected sales results are preliminary and
unaudited, have not been reviewed by the Company’s independent
registered public accountants, and remain subject to the completion
of normal quarter-end accounting procedures and adjustments and are
subject to change.
Liquidity
During the fiscal third quarter, the Company
paid down a substantial portion of its outstanding revolving credit
facility. As of September 29, 2020, the Company held $7.6 million
of cash on hand and had borrowings of $44.0 million. The Company
currently has $52.3 million available for borrowing under its
revolving credit facility as of September 29, 2020.
Investor Conference
Participation
As a reminder, Dave Boennighausen, Chief
Executive Officer, will present at the October
2020 Lytham Partners Virtual Investor Growth Conference.
Noodles’ discussion will start at 1:00 pm Eastern
Time on Tuesday, October 6, 2020.
This discussion will be webcast live and
archived on the Noodles & Company website. To access
the webcast, please visit www.noodles.com under the
“Investor Relations” tab.
About Noodles &
Company
Since 1995, Noodles & Company has
been serving noodles your way, with noodles and flavors that you
know and love as well as new ones you're about to discover. From
indulgent Wisconsin Mac & Cheese to better-for-you Zoodles and
Other Noodles, the company serves a world of flavor in every bowl.
Made up of more than 450 restaurants and thousands of passionate
team members, Noodles was named one of the Best Places to Work by
the Denver Business Journal for its unique culture built
on the value of "Loving Life," which begins by nourishing and
inspiring every team member and guest who walks through the door.
To learn more or find the location nearest you,
visit www.noodles.com.
Forward Looking Statements
In addition to historical information, this
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that involve risks and uncertainties such as the number of
restaurants we intend to open, projected capital expenditures and
estimates of our effective tax rates. In some cases, you can
identify forward-looking statements by terms such as “may,”
“might,” “will,” “objective,” “intend,” “should,” “could,” “can,”
“would,” “expect,” “believe,” “design,” “estimate,” “predict,”
“potential,” “plan” or the negative of these terms and similar
expressions intended to identify forward-looking statements. These
statements reflect our current views with respect to future events
and are based on currently available operating, financial and
competitive information. Examples of forward-looking statements
include all matters that are not historical facts, such as
statements regarding our ability to navigate the COVID-19 crisis,
the revenue and balance sheet impact of the COVID-19 crisis, the
implementation and results of strategic initiatives and our future
financial performance. Our actual results may differ materially
from those anticipated in these forward-looking statements due to
reasons including, but not limited to, the extent, duration and
severity of the COVID-19 crisis; governmental and guest response to
the COVID-19 crisis; other conditions beyond our control such as
weather, natural disasters, disease outbreaks, epidemics or
pandemics impacting our customers or food supplies; consumer
reaction to industry related public health issues and health
pandemics, including the COVID-19 crisis and perceptions of food
safety; our ability to achieve and maintain increases in comparable
restaurant sales and to successfully execute our business strategy,
including new restaurant initiatives and operational strategies to
improve the performance of our restaurant portfolio; our ability to
maintain compliance with debt covenants and continue to access
financing necessary to execute our business strategy; the success
of our marketing efforts; our ability to open new restaurants on
schedule; current economic conditions; price and availability of
commodities; our ability to adequately staff our restaurants;
changes in labor costs; consumer confidence and spending patterns;
seasonal factors; and weather. For additional information on these
and other factors that could affect the Company’s forward-looking
statements, see the Company’s risk factors, as they may be amended
from time to time, set forth in its filings with the SEC, included
in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2019 filed on February 26, 2020 and in our Quarterly
Reports on Form 10-Q for the quarterly periods ended March 31, 2020
and June 30, 2020 filed on June 17, 2020 and August 6, 2020,
respectively. The Company disclaims and does not undertake any
obligation to update or revise any forward-looking statement in
this press release, except as may be required by applicable law or
regulation.
Contacts:
Investor
Relationsinvestorrelations@noodles.com
MediaDanielle Moore(720)
214-1971press@noodles.com
Source: Noodles & Company
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