BROOMFIELD, Colo. - Noodles & Company (NASDAQ:NDLS), a fast-casual restaurant chain, announced today the appointment of Britain Peakes as a director on its Board of Directors, effective immediately. Ms. Peakes is recognized for her extensive experience in finance and investments, including her current role as a principal investor at Hoak & Co.
Ms. Peakes has a distinguished background in various financial sectors, with a history of roles at notable firms such as HBC Investments, Blackhill Partners, and Ernst & Young. Her academic credentials include a Master of Science in Accounting and a Bachelor of Business Administration from Southern Methodist University.
Jeff Jones, Chairman of the Board at Noodles & Company, expressed confidence in the appointment, noting Ms. Peakes' strategic and financial expertise as valuable additions to the board. Ms. Peakes herself conveyed enthusiasm for joining the team, commending the company's dedication to quality and innovation, and expressing her eagerness to contribute to its strategic growth initiatives.
This appointment coincides with a Support Agreement between Noodles & Company and Hoak Public Equities, L.P., an entity that holds approximately 9.48% of the company's outstanding shares. The agreement includes customary provisions such as standstill, voting, and confidentiality commitments. Further details on the agreement can be found in the Form 8-K filed by the company with the U.S. Securities and Exchange Commission.
Noodles & Company has been recognized for its workplace culture and diversity, having received accolades from Newsweek and Forbes, and is known for its commitment to community and employee empowerment. The company operates over 460 restaurants and is celebrated for its diverse noodle dishes and industry-leading benefits.
In other recent news, Noodles & Company reported their Q1 2024 financial results, which showed a decrease in total revenue by 3.7% and a 5.4% decline in system-wide comp restaurant sales compared to the previous year. Despite the decline, the company noted improvements in traffic and sales in April and a continued focus on strategic priorities such as operations excellence and menu innovation. The company also reported a net loss of $6.1 million for the quarter, but they remain optimistic about future growth, with plans to open new restaurants and aiming to achieve positive free cash flow by the fourth quarter of 2024.
These are recent developments and indicate a mixed performance for Noodles & Company. The company has seen an increase in traffic by 0.3% in April, marked a positive trend. They exceeded industry benchmarks on same-store sales for the first time since early 2023 and have a menu transformation underway. Catering sales are growing, with an increase by 20%, and cost reduction efforts are expected to save about $4 million this year. The company plans to open 10-12 new company-owned restaurants in 2024.
InvestingPro Insights
In light of the recent board appointment and strategic partnership, investors may be keen to understand the financial health and market performance of Noodles & Company. According to InvestingPro, the company has been grappling with a few financial challenges. Notably, Noodles & Company operates with a significant debt burden and is quickly burning through cash, which could impact its capacity to fund ongoing operations and growth initiatives. Additionally, the company's stock price has been quite volatile, which could be a concern for investors looking for stability.
On the data front, Noodles & Company's market cap currently stands at 84.8 million USD, reflecting the market's valuation of the company. The adjusted P/E ratio for the last twelve months as of Q1 2024 is -18.54, indicating that investors are not expecting earnings to cover the stock price in the near future. Furthermore, the company has experienced a revenue decline of -4.64% during the same period, which could be a point of focus for Ms. Peakes and the board as they strategize for growth.
For investors seeking a deeper dive into the company's financials and future outlook, there are additional InvestingPro Tips available, including insights into management's share buyback strategy and analysts' earnings revisions. For those considering an InvestingPro subscription, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 15 additional tips listed in InvestingPro that could further inform investment decisions regarding Noodles & Company.
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