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NDLS $1.3

NDLS target price
1.30
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Noodles & Company
Type
Public
Traded as NYSE: NDLS
Industry Fast Casual
Founded 1995; 22 years ago (1995) in Cherry Creek, Denver, Colorado
Founder Aaron Kennedy
Number of locations
410
Key people
Dave Boennighausen (CEO)
Products Pasta
Salads
Soups
Appetizers
& Other food products
Revenue Increase $300.4 million USD
Operating income
Increase US$16.052 million (2012)
Net income
Increase US$5.639 million (2012)
Total assets Increase US$156.99 million (2012)
Total equity Increase US$10.4 million (2012)
Number of employees
7,000+
Website www.noodles.com

Noodles & Company (NASDAQ: NDLS) is a fast-casual restaurant headquartered in Broomfield, Colorado, that offers international and American noodle dishes, as well as soups, salads, and pasta.

It was founded in 1995 by Aaron Kennedy. It grew from $300,000 in revenue in 1996 to $300 million when it went public in 2013. The company had 510 locations, including franchises, in 39 states, as of December 2016.

The idea for Noodles & Company was conceived by former Pepsi marketing executive Aaron Kennedy, after eating at Mamie's Asian Noodle Shop in Greenwich Village, New York. He felt there were not enough restaurants that served noodle dishes, which are a staple for many international foods. Kennedy started developing recipes out of his mother-in-law's kitchen with the future COO, Joe Serafin, and head chef, Ross Kamens, in 1994.

Kennedy raised $73,000 ($118 thousand in 2016 dollars) in personal funds and $200,000 ($323 thousand in 2016 dollars) in investments from 24 friends and family members. The first Noodles & Company was opened in October 1995, in the Cherry Creek neighborhood of Denver, Colorado. Kennedy was joined by partner and real estate developer Tom Weigand, whom he had met at Augustana College. They opened a second location in Madison, Wisconsin, the following March.

In the first three months, Noodles & Company lost $42,000.($64.1 thousand in 2016 dollars), and almost went out of business in 1996 after a reporter with the Wisconsin State Journal published a negative review. He said Noodles & Company was "a killer idea" but "criticized nearly every dish he'd tried." The Denver Post and other newspapers had published similar reviews. In response, Kennedy started a "Redefine Noodles & Company" campaign "to redefine and refine nearly every aspect of the operation."

In mid-1996, the management team went to Chicago to observe other noodle restaurants and, the night of their return, the basement flooded at the Madison location. The next day, Kennedy made a list of 15 areas for improvement. Rocky Mountain News said "the team completely revamped the Noodles concept, overhauling the menu, the prices, the decor and more. It worked." The restaurant implemented a warmer color scheme. Steam tables to keep food warm were replaced with saute lines to cook each dish as it is ordered. Two new managers were hired and an executive chef re-worked the menu. According to Inc. Magazine, within sixty days "the food had improved dramatically."

From 1996–2000, Noodles & Company's revenues grew from $330,000 ($504 thousand in 2016 dollars) to $13 million ($18.1 million in 2016 dollars). Local food critics in many cities began naming Noodles & Company as the best fast-food restaurant in the city and it was frequently listed as a "company to watch." It won a Hot Concept! award from Nation's Restaurant News. $1 million ($1.47 million in 2016 dollars) in stock was sold in 1998, which was followed by a $2.5 million ($3.67 million in 2016 dollars) round of funding and a $5 million round in 2000. ($6.95 million in 2016 dollars)

The restaurant had 37 locations in 2002, 65 in 2003, and 142 by 2007. The company started franchising in 2003 and by 2007, 22 of its stores were franchises. The restaurants were redesigned in 2004 with lighter colors, new packaging, a greater emphasis on carryout orders and a floorplan that emphasized an open kitchen, where the saute line was visible to customers.

According to Rocky Mountain News, the company was growing "so fast that it has had to move every two years." In 2006, its headquarters were moved from Boulder to Broomfield, Colorado. The company's founder, Aaron Kennedy, stepped down from his position as CEO that same year and was replaced by Kevin Reddy. The number of Noodles & Company locations grew threefold from the beginning of the financial crisis of 2007–08 to 2013, reaching 339 locations.

In 2010, a majority interest in Noodles & Company was acquired by an investment group led by Catterton Partners. In January 2013, bankers told the Financial Times that Noodles & Company was scouting for underwriters for an initial public offering (IPO). Two months later, the intent for a public offering was confirmed with a filing with the Securities Exchange Commission for $75 million in stock. Around this time, the company had reached 339 locations, 51 of which were franchises, and $300.4 million in revenues. Within a day following Noodles & Company's IPO on June 27, the stock price doubled. Fast Company and The Daily Beast called it "the hottest IPO of the year" and compared it to Chipotle's IPO.

On November 16, 2015, Noodles & Company announced that it had pulled out of Central Texas, closing all five of its locations in the Austin area. Restaurants in a handful of other cities had closed or were planned to close within the coming weeks, including locations in Lubbock and the Washington, D.C. area, according to published reports. Ultimately, 16 locations were closed by the end of the year.

On July 25, 2016 in Alexandria, Virginia, two Noodles & Company employees refused to serve a uniformed police officer. The officer left the restaurant and reported the incident, which gained regional news coverage. The company issued an apology and terminated the employees involved in the incident.

In 2017, the company planned to close 55 underperforming restaurants, but also planned to open 14 to 17 new locations.

Noodles & Company offers international and American noodle dishes, as well as soups, salads, and pasta. Most pasta entrees come vegetarian, but have optional protein toppings such as tofu, chicken, beef or shrimp. It also sells flat bread and desserts like Rice Krispies Treats.

Customers order at the counter and are served at their table, usually within five to seven minutes. The average check is approximately $8 per person. The restaurants use soft lighting, furniture made from recycled bamboo and have bench seating and community tables. Orders can be made online, to dine-in, or to-go.

Seasonal items were first introduced to supplement the menu in 2002. Two years later, noodle-less entrees were added in response to the trend for low-carb diets. The following year it introduced a whole-grain Tuscan fettuccine. Naturally raised pork was added as a meat option in 2012. Three seasonal items and a gluten-free fusilli were added in April 2013.

In 2015, Noodles & Company debuted customizable kids’ meals.

Sometime between July 2016 and October 2016, sandwiches were quietly removed from the Noodles website, with the last web snapshot that recorded the inclusion of sandwiches on the menu having occurred at the end of that July.

From 1997 to 2002, Noodles & Company sponsored outdoor and print ads. By 2002 it had a $1.3 million advertising budget and began airing ads on major television networks. One was of a "snake charmer" using a flute to charm noodles and the other was a noodles dish as a landing UFO, from which noodles emerged. Both ads carried the slogan "We're going to get you." Afterwards, in the early 2000s, the company reduced its advertising resources, before a rebranding effort that started in 2008.

The slogan "Your World Kitchen" was introduced in 2013. The largest component of Noodles & Company's advertising is in outdoor ads like billboards, but it also invests in radio, digital media and news sites. The billboards emphasize the global cuisine. One points to a parking lot and says "Recipes imported from more countries than these cars."

Most Noodles & Company restaurants are owned and operated by Noodles & Company Incorporated, but some are operated in a franchise model. Franchise locations are operated by an independent franchisee that is trained by Noodles & Company and uses the same menu, pricing and branding as corporate-owned stores. As of 2010, the average Noodles & Company store generated more than $1 million in annual revenue, with a profit of 21 percent. Takeout orders account for approximately 25 percent of revenues. According to Inc. Magazine, Noodles & Company is more selective in franchise partners than other franchise-based restaurants, and has a higher ratio of corporate-owned stores than most franchising restaurants.

Nutrition facts are posted on the company's website. As with most pasta-based dishes, the company's noodles dishes are high in carbohydrates, with regular-sized dishes containing 80–150 grams of carbohydrates per serving (the company's salads and sandwiches tend to be lower in carbohydrates). Many of the regular-sized pasta dishes exceed 1,000 calories, but smaller portions with under 500 calories are available for some dishes. Noodles and Company offers dishes made with gluten-free and vegan ingredients, but warns that cross-contamination may occur.

Q reports

Period Date Adjusted Actuals EPS GAAP EPS
Q3 2022 2022-10-25 Future report Set alerts
Q2 2022 2022-07-27 0.05 0.05
Q1 2022 2022-04-27 -0.13 -0.13
Q4 2021 2022-02-23 -0.05 -0.05
Q3 2021 2021-10-27 0.12 0.12
Q2 2021 2021-08-03 0.10 0.10
Q1 2021 2021-04-29 -0.02 -0.02
Q4 2020 2021-02-26 -0.04 -0.04
Q3 2020 2020-10-28 0.01 0.01
Q2 2020 2020-08-06 -0.18 -0.18

Ratings

2016-06-25 Reiterated Rating Jefferies Group Buy $14.00
2016-05-16 Reiterated Rating Robert W. Baird Hold
2016-05-06 Reiterated Rating Jefferies Group Buy $14.00
2016-05-04 Reiterated Rating Credit Suisse Hold
2016-05-04 Reiterated Rating BMO Capital Markets Buy
2016-05-04 Reiterated Rating Credit Suisse Group AG Hold
2016-03-15 Reiterated Rating Citigroup Inc. Buy $13.00 to $15.00
2016-03-03 Downgrade Piper Jaffray Neutral to Underweight $10.00 to $8.00
2016-03-03 Downgrade Piper Jaffray Cos. Neutral to Underweight $10.00 to $8.00
2016-02-26 Reiterated Rating Morgan Stanley Hold $13.00
2015-12-14 Reiterated Rating Jefferies Group Buy $15.00
2015-11-25 Initiated Coverage Citigroup Inc. Buy $13.00
2015-11-06 Lower Price Target Jefferies Group Buy $18.00 to $15.00
2015-11-06 Lower Price Target Credit Suisse $13.00 to $12.50
2015-11-06 Lower Price Target BMO Capital Markets $18.00 to $15.00
2015-11-06 Lower Price Target Barclays Equal Weight $13.00 to $12.00
2015-11-06 Lower Price Target RBC Capital Sector Perform $14.00 to $13.00
2015-11-06 Lower Price Target Barclays PLC Equal Weight $13.00 to $12.00
2015-11-06 Lower Price Target Royal Bank Of Canada Sector Perform $14.00 to $13.00
2015-10-07 Initiated Coverage SunTrust Neutral $15.00
2015-10-07 Initiated Coverage SunTrust Banks Inc. Neutral $15.00
2015-08-08 Reiterated Rating RBC Capital Hold
2015-08-07 Reiterated Rating Stifel Nicolaus Hold
2015-08-07 Lower Price Target Wedbush Neutral $15.00 to $13.50
2015-08-07 Reiterated Rating Jefferies Group Buy $22.00 to $18.00
2015-08-07 Lower Price Target BMO Capital Markets $21.00 to $18.00
2015-08-07 Lower Price Target Barclays Equal Weight $16.00 to $13.00
2015-08-07 Downgrade Piper Jaffray Overweight to Neutral $19.00 to $12.00
2015-08-07 Lower Price Target RBC Capital Sector Perform $17.00 to $14.00
2015-06-11 Reiterated Rating Piper Jaffray Overweight $19.00
2015-05-10 Reiterated Rating Piper Jaffray Overweight $25.00 to $19.00
2015-05-10 Reiterated Rating Barclays Equal Weight $20.00 to $16.00
2015-05-09 Reiterated Rating Jefferies Group Buy $27.00 to $22.00
2015-05-07 Reiterated Rating Janney Montgomery Scott Neutral
2015-05-07 Downgrade Bank of America Neutral to Underperform $23.00 to $16.00
2015-05-07 Downgrade Bank of America Corp. Neutral to Underperform $23.00 to $16.00
2015-05-06 Lower Price Target BMO Capital Markets Outperform $26.00 to $21.00
2015-05-06 Lower Price Target Credit Suisse Neutral $18.00 to $16.00
2015-05-06 Lower Price Target RBC Capital Sector Perform $22.00 to $17.00
2015-04-15 Set Price Target Wedbush Hold $22.00
2015-03-10 Initiated Coverage Credit Suisse Neutral $18.00
2015-02-20 Lower Price Target Barclays Equal Weight $29.00 to $20.00
2015-02-20 Lower Price Target Piper Jaffray Overweight $32.00 to $25.00
2015-02-20 Lower Price Target Jefferies Group Buy $30.00 to $27.00
2015-02-20 Downgrade Janney Montgomery Scott Buy to Neutral $31.00 to $24.00
2015-02-20 Downgrade Robert W. Baird Outperform to Neutral $31.00 to $21.00
2015-02-20 Lower Price Target RBC Capital Sector Perform $25.00 to $22.00
2015-01-14 Set Price Target Piper Jaffray Buy $32.00
2015-01-06 Reiterated Rating Jefferies Group Buy $24.00 to $30.00
2014-11-25 Initiated Coverage Janney Montgomery Scott Buy $28.00
2014-11-06 Reiterated Rating Barclays Equal Weight $22.00 to $23.00
2014-11-06 Boost Price Target RBC Capital $25.00
2014-10-09 Initiated Coverage BMO Capital Markets Outperform $25.00
2014-10-07 Upgrade Jefferies Group Hold to Buy
2014-09-10 Upgrade UBS Neutral to Buy $26 to $26
2014-08-14 Reiterated Rating Barclays Equal Weight $35.00 to $22.00
2014-08-14 Lower Price Target Wedbush $21.00
2014-05-19 Lower Price Target Piper Jaffray Overweight $47.00 to $38.00
2014-04-30 Reiterated Rating Jefferies Group Hold $35.00
2014-04-30 Reiterated Rating Barclays Equal Weight $35.00
2014-04-30 Lower Price Target RBC Capital Sector Perform $43.00 to $39.00
2013-11-08 Initiated Coverage RBC Capital Sector Perform $45.00
2013-10-03 Initiated Coverage Barclays Equal Weight $39.00
2013-07-23 Initiated Robert W. Baird Outperform $50
2016-06-25 Reiterated Rating Jefferies Group Buy $14.00
2016-05-16 Reiterated Rating Robert W. Baird Hold
2016-05-06 Reiterated Rating Jefferies Group Buy $14.00
2016-05-04 Reiterated Rating Credit Suisse Hold
2016-05-04 Reiterated Rating BMO Capital Markets Buy

There is presents forecasts of rating agencies and recommendations for investors about this ticker

Major Shareholders

Name Relationship Total Shares Holding stocks
Catterton-Noodles, LLC 39.28%  (11087757) NDLS /
PUBLIC SECTOR PENSION INVESTMENT BOARD 23.93%  (6754375) NDLS / XPO /
MURPHY PAUL J B III 0.53%  (150000) LEVY / NDLS /
Hartnett Robert M. 0.36%  (100882) NDLS /
Boennighausen David James Chief Financial Officer 0.14%  (40000) NDLS /
Hermann Charles Chief Brand Officer 0.12%  (35000) NDLS /
Reddy Kevin Michael Chief Executive Officer 0.11%  (32314) NDLS /
WEST THOMAS B EVP - Operations 0.11%  (30000) NDLS /
Kinsey Keith Joseph President and COO 0.09%  (24936) NDLS /
DAGGETT SUSAN Interim Chief Financial Office 0.08%  (22000) NDLS /
Lockhart Kathryn Rae Vice President & Controller 0.05%  (15000) NDLS /
Strasen Paul Allen EVP & General Counsel 0.05%  (14215) NDLS /
Rand James Thomas 0.05%  (13592) NDLS /
MEARS MARK EVP & Chief Marketing Officer 0.03%  (9190) NDLS /
Heutz Victor Robert Jr. Chief Operations Officer 0.03%  (9000) NDLS /
Dahnke Scott Arnold 0.02%  (5096) NDLS /
Petrilli Felix Thomas Jr. EVP of Operations 0.02%  (5000) NDLS /
Murphy Johanna Elaine 0.02%  (4587) NDLS /
JONES JEFFREY W 0.02%  (4587) DRII / INN / MTN / NDLS /