Casual restaurant chain Noodles & Company (NASDAQ:NDLS) will be announcing earnings results tomorrow after market close. Here’s what to expect.

Noodles missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $121.8 million, down 2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and a miss of analysts’ EPS estimates.

Is Noodles a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Noodles’s revenue to grow 1.8% year on year to $123.6 million, a reversal from the 3.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.Noodles Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Noodles’s peers in the modern fast food segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Wingstop delivered year-on-year revenue growth of 17.4%, meeting analysts’ expectations, and Chipotle reported revenues up 6.4%, falling short of estimates by 2.1%. Wingstop traded up 12.7% following the results while Chipotle was also up 1.7%.

Read our full analysis of Wingstop’s results here and Chipotle’s results here.

There has been positive sentiment among investors in the modern fast food segment, with share prices up 7.8% on average over the last month. Noodles is up 4% during the same time and is heading into earnings with an average analyst price target of $2.92 (compared to the current share price of $1.05).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

View Comments