Noodles & Company Unveils “Perfect Bowls” to Accommodate Specific Guest Dietary Needs; Provides Business Update
18 June 2020 - 6:15AM
Noodles & Company (NASDAQ:NDLS), known for serving classic
noodle, Zoodle and Caulifloodle dishes from around the world,
announced the addition of new Perfect Bowls to its menu. Perfect
Bowls are curated fan-favorite dishes that cater to popular diets
and lifestyles, including paleo-friendly, keto, vegetarian and
gluten-sensitive, making it easy for guests to maintain healthier
summer routines while enjoying their favorite Noodles flavors. And,
as always, Noodles guests have the ability to customize any other
dish on the menu to match individual nutritional goals. The Company
also further expanded its healthy alternatives in its new family
meal offerings by adding a Zoodle and Caulifloodle option, which
gives guests the ability to enjoy four healthy dishes plus a Caesar
salad for the low price of $40.
Additionally, the Company today provided an
update on the COVID-19 pandemic’s impact on the Company's
business.
Business Update
Quarter-to-Date Q2 2020 Comparable Restaurant
Sales
Comparable Restaurant Sales |
4 WeeksEndedApril 28,2020 |
|
4 WeeksEndedMay 26,2020 |
|
WeekEndedJune 2,2020 |
|
WeekEndedJune 9,2020 |
|
WeekEndedJune 16,2020 |
|
FiscalQuarter toDate June30, 2020 |
Company-owned |
(47.0)% |
|
(28.9)% |
|
(23.2)% |
|
(20.2)% |
|
(14.8)% |
|
(33.2)% |
Franchise |
(55.5)% |
|
(37.3)% |
|
(25.7)% |
|
(23.2)% |
|
(16.8)% |
|
(39.8)% |
System-wide |
(48.2)% |
|
(30.1)% |
|
(23.6)% |
|
(20.6)% |
|
(15.1)% |
|
(34.1)% |
- Comparable restaurant sales(1) have
improved meaningfully since the beginning of the COVID-19 pandemic.
After comparable sales declined 54.7% during the final week of
March, results have sequentially improved even with the vast
majority of dining rooms remaining closed.
- Comparable sales declined 14.8% at
company-owned restaurants for the fiscal week ended June 16,
2020.Average weekly sales(2), which normalize for the impact of
restaurants that were temporarily closed due to the COVID-19
pandemic, declined 9.7% during the fiscal week ended June 16, 2020
versus the comparable fiscal week of 2019.
- Digital sales have continued to
strengthen and for the week ending June 16, 2020 were 67% of
overall sales compared to 31% of overall sales for the first
quarter of 2020._______________________(1) Comparable restaurant
sales represent year-over-year sales comparisons for the comparable
restaurant base open for at least 18 full periods. This measure
highlights performance of existing restaurants, as the impact of
new restaurant openings is excluded. Changes in comparable
restaurant sales are generated by changes in traffic, which we
calculate as the number of entrées sold, or changes in per-person
spend, calculated as sales divided by traffic.(2) Average weekly
sales is calculated by dividing restaurant revenue by the number of
operating days within the time period and multiplying by seven
days.
Disciplined Dining Room Re-openings Continue
From the last half of March through May 2020,
substantially all Noodles & Company dining rooms were closed
due to the COVID-19 pandemic. The Company was able to shift much of
their dining room sales to off-premise and has since begun
re-opening dining rooms in certain restaurants. As of June 16, 2020
approximately 20% of restaurant locations system-wide had re-opened
dining rooms, including 7% of company locations and 87% of
franchised locations. The Company and its franchisees will continue
to open the remaining dining rooms as appropriate.
Liquidity Update
The Company’s liquidity profile remains healthy
with cash on hand of $62.4 million as of June 17, 2020. The Company
also disclosed today an amendment to its credit facility which
enhances financial flexibility, particularly related to certain
Company financial covenants, through the third quarter of 2021.
Investor Conference
Participation
On Tuesday, June 23, 2020, the Company will
participate in the Jefferies 2020 Virtual Global Consumer
Conference. Noodles' virtual fireside chat discussion will begin at
10:30 AM Eastern Time. To access this live virtual fireside chat,
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 impact of the
COVID-19 pandemic, including operational and financial measures we
have taken in response, 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 pandemic, our new product
introductions, our plans to reopen our dining rooms, 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 pandemic; governmental and guest response
to the COVID-19 pandemic; 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 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 most
recently filed Annual Report on Form 10-K, and, from time to time,
in our subsequently filed Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K. 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 Relations
investorrelations@noodles.com
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