The delta and omicron COVID surges struck Noodles & Company one after the other, severely hurting the fast casual’s revenue, the chain said late Wednesday.
The Broomfield, Colo. due to temporary store closures and shortened operating hours as a result of the delta surge’s effects on eateries in the Rocky Mountain West and Upper Midwest, CEO Dave Boennighausen informed analysts that the -based chain lost about $8 million in anticipated fourth-quarter revenue.
Before Noodles was impacted by the effects of omicron early in 2022, the business had begun to rebound. The same-store sales, however, increased this month by 8%. 7% systemwide as of this week, the company said.
According to a transcript from the financial services website Sentieo, Boennighausen stated, “These results give us confidence that the brand will again prove its resilience and accelerate both sales and margin expansion quickly as omicron subsides.”
Due to the effects of omicron, inflation, and historically slow season, Noodles anticipates restaurant-level margins of just 7% to 9% in the first quarter. The chain stated that margins should increase to the “high teens” later in the year. ”.
For the quarter that ended Dec. 28, Noodles’ same-store sales increased by 11. 2% systemwide over the same period last year. Total revenue grew by 7. 1% to $114. 8 million. Average unit volumes increased by 14. 1% to $1. 31 million.
The chain had 372 company-owned restaurants and 76 franchised locations at the end of the quarter. A year ago, there were six fewer company-owned locations.
Noodles stated that it plans to open 35 new locations by the end of 2022, including seven in the first three months. The chain stated that it continues to anticipate 10% annual unit growth by 2023.
Increased labor costs represent a major challenge for the chain. During the fourth quarter, Noodles paid an extra $1. 1 million in one-time hiring, retaining, and COVID-related labor costs Wage inflation during the quarter was about 9%.
And there’s little sign of that wage pressure letting up. Noodles predicted “low double-digit wage inflation” for the first quarter. ”.
The company’s main protein, boneless chicken breasts, was also affected by inflation, increasing the overall cost of goods sold by 8%, the company claimed.
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FAQ
Why is there no Noodles and Company in Texas?
Prior to 2017, the company ran a few restaurants in Texas, but they shut down due to poor performance, according to a spokeswoman. Ramsay anticipates that new Noodles restaurants will open in 2022 and 2023 after the company selects franchisees by the summer of 2021.
Who bought Noodles company?
Sudesh Sood, Eddie Nieves, and Ben Nematzadeh, partners at Warner Foods, are the sole franchise owners of Noodles & Company in California following the signing of a development agreement for 40 units and the purchase of 15 company-owned restaurants.
Is Noodles and Company owned by Mcdonalds?
Noodles & Co has both company operated stores and franchisees. 239 company-owned Noodles & Co. locations generated $253 million in revenue last year, and $2 45 franchised stores generated $6 million in sales, bringing the total revenue from 284 restaurants to $256 million. What’s the Deal With Noodles & Company?Company5 year CAGRMcDonald’s4. 62%.
Did Noodles and company get bought?
In 2010, a group of investors led by Catterton Partners purchased the majority of Noodles & Company.
