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“Our second quarter saw a consistent sales recovery led by the strength and evolution of our digital and off-premise business, and I’m pleased to report that the recovery has continued into the third quarter,” said
Boennighausen added, “I am extremely proud of all of our team members and partners for the progress we have made since the onset of the COVID-19 pandemic. The Company’s competitive strengths in our people, off-premise resonance and the variety inherent in our menu - from our world famous Mac & Cheese to healthy Zoodle and Caulifloodle offerings - have positioned
The cadence of comparable restaurant sales and average unit volumes during the second quarter and third quarter to-date are as set forth below. Company-owned restaurants were closed
| Comparable Restaurant Sales | 4 Weeks Ended |
4 Weeks Ended |
5 Weeks Ended |
2 Weeks Ended |
2 Weeks Ended |
| Company-owned | (47.0)% | (28.9)% | (17.7)% | (13.9)% | (3.8)% |
| Franchise | (55.5)% | (37.3)% | (18.1)% | (7.5)% | (7.8)% |
| System-wide | (48.2)% | (30.1)% | (17.8)% | (13.0)% | (4.4)% |
| Average Unit Volumes (000’s) |
_____________________
(1) Company-owned restaurants were closed
Key highlights for the second quarter of 2020 versus the second quarter of 2019 include:
- Total revenue was
$80.2 million compared to$120.2 million . - Comparable restaurant sales decreased 30.9% system-wide, comprised of a 30.1% decrease at company-owned restaurants and a 35.4% decrease at franchise restaurants.
- Digital sales grew 135% and accounted for 74% of sales.
- Net loss was
$13.5 million , or$0.30 per diluted share, compared to net income of$0.4 million , or$0.01 per diluted share. - Adjusted net loss(2) was
$8.1 million , or$0.18 per diluted share, compared to an adjusted net income of$2.1 million , or$0.05 per diluted share. - EBITDA(2) was
$(7.1) million compared to$6.9 million for the second quarter of 2019. - Adjusted EBITDA(2) was
$(3.3) million compared to$10.9 million for the second quarter of 2019.
_____________________
(2) Adjusted net (loss) income, EBITDA and adjusted EBITDA are a non-GAAP measures. Reconciliations of net (loss) income to adjusted net (loss) income, EBITDA and adjusted EBITDA are included in the accompanying financial data. See “Non-GAAP Financial Measures.”
Second Quarter 2020 Financial Results
Total revenue decreased to
In the second quarter of 2020, system-wide comparable restaurant sales declined 30.9%, comprised of a 30.1% decrease at company-owned restaurants and a 35.4% decrease at franchise restaurants. Comparable restaurant sales improved throughout the quarter and that improvement has continued into the third quarter. During the last two weeks of the July fiscal period, comparable sales declined only 3.8% at company-owned restaurants.
Average Unit Volumes, which normalizes for the impact of temporary restaurant closures, declined 0.5% during the fiscal period ending
Digital sales during the second quarter grew 135% relative to prior year and accounted for 74% of total sales. Digital sales have continued to grow rapidly relative to the prior year thus far in the third quarter even as on-premise dining resumes in many restaurants, with 148% growth during the fiscal period ending
As of the end of the second quarter, 40% of company-owned restaurants and 100% of franchised restaurants offered seating either in-restaurant or patio seating. On-premise dining continues to re-open, and as of
In the second quarter of 2020, the Company closed one restaurant and franchisees closed one restaurant. There were 456
For the second quarter of 2020, the Company reported a net loss of
Restaurant contribution margin decreased to 6.7% in the second quarter of 2020, compared to 17.1% in the second quarter of 2019. This decrease was primarily due to decreased sales volumes, increased costs related to COVID-19 and increased third-party delivery fees associated with higher delivery sales.
Adjusted net loss was
Liquidity Update and Outlook:
As of
The Company’s strengthening financial position reflects our continued discipline around capital investments and non-essential costs. Assuming we continue to see comparable sales improvement, we have increased confidence on our ability to generate positive cash flow for the rest of 2020 and support strategic investments.
Given the ongoing uncertainty surrounding the impact of COVID-19 on the economy and any specific impact to the Company, we do not have any further updates on our fiscal year 2020 expectations following the withdrawal of our financial guidance on
Non-GAAP Financial Measures
The Company believes that a quantitative reconciliation of the Company’s non-GAAP financial measures guidance to the most comparable financial measures calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to provide guidance for various reconciling items that are outside of the Company’s control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. A reconciliation of certain non-GAAP financial measures would also require the Company to predict the timing and likelihood of outcomes that determine future impairments and the tax benefit thereof. None of these measures, nor their probable significance, can be reliably quantified. The non-GAAP financial measures noted above have limitations as analytical financial measures, as discussed below in the section entitled “Non-GAAP Financial Measures.” In addition, the guidance with respect to non-GAAP financial measures is a forward-looking statement, which by its nature involves risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statement, as discussed below in the section entitled “Forward-Looking Statements.”
Key Definitions
Average Unit Volume — represents the average annualized sales of all restaurants for a given time period. AUV is calculated by dividing restaurant revenue by the number of operating days within each time period and multiplying by the number of operating days we have in a typical year. This measurement allows management to assess changes in revenue patterns at our restaurants.
Comparable Restaurant Sales — represents 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.
Restaurant Contribution and Restaurant Contribution Margin — restaurant contribution represents restaurant revenue less restaurant operating costs, which are costs of sales, labor, occupancy and other restaurant operating items. Restaurant contribution margin represents restaurant contribution as a percentage of restaurant revenue. Restaurant contribution and restaurant contribution margin are presented because they are widely-used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency and performance. Management also uses restaurant contribution and restaurant contribution margin as metrics to evaluate the profitability of incremental sales at our restaurants, restaurant performance across periods, and restaurant financial performance compared with competitors. See “Non-GAAP Financial Measures” below.
EBITDA and Adjusted EBITDA — EBITDA represents net income (loss) before interest expense, provision (benefit) for income taxes and depreciation and amortization. Adjusted EBITDA represents net income (loss) before interest expense, provision (benefit) for income taxes, depreciation and amortization, restaurant impairments, closure costs and asset disposals, acquisition costs, severance costs and stock-based compensation expense. EBITDA and Adjusted EBITDA are presented because: (i) management believes they are useful measures for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and restaurant impairments, asset disposals and closure costs, and (ii) management uses them internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare performance to that of competitors. See “Non-GAAP Financial Measures” below.
Adjusted Net Income (Loss) — represents net income (loss) plus various adjustments and the tax effects of such adjustments. Adjusted net income (loss) is presented because management believes it helps convey supplemental information to investors regarding the Company’s performance, excluding the impact of special items that affect the comparability of results in past quarters and expected results in future quarters. See “Non-GAAP Financial Measures” below.
Conference Call
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in
For more information on the non-GAAP financial measures, please see the “Reconciliation of Non-GAAP Measurements to GAAP Results” tables in this press release. These accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
About
Since 1995,
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 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 crisis, projected capital expenditures, the revenue and balance sheet impact of the COVID-19 crisis, estimated costs associated with our closure of underperforming restaurants, 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 crisis; governmental and guest response to the COVID-19 crisis; 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, including the COVID-19 crisis 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
Noodles & Company
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data, unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | ||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
| Revenue: | |||||||||||||||
| Restaurant revenue | $ | 80,021 | $ | 118,858 | $ | 178,737 | $ | 227,623 | |||||||
| Franchising royalties and fees, and other | 136 | 1,332 | 1,768 | 2,613 | |||||||||||
| Total revenue | 80,157 | 120,190 | 180,505 | 230,236 | |||||||||||
| Costs and expenses: | |||||||||||||||
| Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | |||||||||||||||
| Cost of sales | 20,020 | 30,448 | 45,224 | 59,539 | |||||||||||
| Labor | 27,137 | 38,877 | 61,368 | 75,969 | |||||||||||
| Occupancy | 11,676 | 12,311 | 23,736 | 24,741 | |||||||||||
| Other restaurant operating costs | 15,789 | 16,858 | 32,478 | 33,314 | |||||||||||
| General and administrative | 10,034 | 11,848 | 20,588 | 21,988 | |||||||||||
| Depreciation and amortization | 5,397 | 5,661 | 10,732 | 11,168 | |||||||||||
| Pre-opening | 71 | 65 | 144 | 65 | |||||||||||
| Restaurant impairments, closure costs and asset disposals | 2,558 | 2,884 | 3,614 | 3,304 | |||||||||||
| Total costs and expenses | 92,682 | 118,952 | 197,884 | 230,088 | |||||||||||
| (Loss) income from operations | (12,525 | ) | 1,238 | (17,379 | ) | 148 | |||||||||
| Interest expense, net | 920 | 800 | 1,888 | 1,561 | |||||||||||
| (Loss) income before taxes | (13,445 | ) | 438 | (19,267 | ) | (1,413 | ) | ||||||||
| Provision for income taxes | 33 | — | 46 | — | |||||||||||
| Net (loss) income | $ | (13,478 | ) | $ | 438 | $ | (19,313 | ) | $ | (1,413 | ) | ||||
| (Loss) earnings per Class A and Class B common stock, combined | |||||||||||||||
| Basic | $ | (0.30 | ) | $ | 0.01 | $ | (0.44 | ) | $ | (0.03 | ) | ||||
| Diluted | $ | (0.30 | ) | $ | 0.01 | $ | (0.44 | ) | $ | (0.03 | ) | ||||
| Weighted average shares of Class A and Class B common stock outstanding, combined: | |||||||||||||||
| Basic | 44,212,751 | 43,964,175 | 44,177,648 | 43,955,580 | |||||||||||
| Diluted | 44,212,751 | 45,075,888 | 44,177,648 | 43,955,580 | |||||||||||
Noodles & Company
Condensed Consolidated Statements of Operations as a Percentage of Revenue
(unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | ||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||
| Revenue: | |||||||||||
| Restaurant revenue | 99.8 | % | 98.9 | % | 99.0 | % | 98.9 | % | |||
| Franchising royalties and fees, and other | 0.2 | % | 1.1 | % | 1.0 | % | 1.1 | % | |||
| Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||
| Costs and expenses: | |||||||||||
| Restaurant operating costs (exclusive of depreciation and amortization shown separately below): (1) | |||||||||||
| Cost of sales | 25.0 | % | 25.6 | % | 25.3 | % | 26.2 | % | |||
| Labor | 33.9 | % | 32.7 | % | 34.3 | % | 33.4 | % | |||
| Occupancy | 14.6 | % | 10.4 | % | 13.3 | % | 10.9 | % | |||
| Other restaurant operating costs | 19.7 | % | 14.2 | % | 18.2 | % | 14.6 | % | |||
| General and administrative | 12.5 | % | 9.9 | % | 11.4 | % | 9.6 | % | |||
| Depreciation and amortization | 6.7 | % | 4.7 | % | 5.9 | % | 4.9 | % | |||
| Pre-opening | 0.1 | % | 0.1 | % | 0.1 | % | — | % | |||
| Restaurant impairments, closure costs and asset disposals | 3.2 | % | 2.4 | % | 2.0 | % | 1.4 | % | |||
| Total costs and expenses | 115.6 | % | 99.0 | % | 109.6 | % | 99.9 | % | |||
| (Loss) income from operations | (15.6 | )% | 1.0 | % | (9.6 | )% | 0.1 | % | |||
| Interest expense, net | 1.1 | % | 0.7 | % | 1.0 | % | 0.7 | % | |||
| (Loss) income before taxes | (16.8 | )% | 0.4 | % | (10.7 | )% | (0.6 | )% | |||
| Provision for income taxes | — | % | — | % | — | % | — | % | |||
| Net (loss) income | (16.8 | )% | 0.4 | % | (10.7 | )% | (0.6 | )% | |||
_______________________
(1) As a percentage of restaurant revenue.
Noodles & Company
Consolidated Selected Balance Sheet Data and Selected Operating Data
(in thousands, except restaurant activity, unaudited)
| As of | |||||
2020 |
2019 |
||||
| Balance Sheet Data | |||||
| Total current assets | $ | 77,734 | $ | 29,322 | |
| Total assets | 422,395 | 378,519 | |||
| Total current liabilities | 60,974 | 58,034 | |||
| Total long-term debt | 93,040 | 40,497 | |||
| Total liabilities | 390,119 | 327,948 | |||
| Total stockholders’ equity | 32,276 | 50,571 | |||
| Fiscal Quarter Ended | |||||||||||||||||||
2020 |
2020 |
2019 |
2019 |
2019 |
|||||||||||||||
| Selected Operating Data | |||||||||||||||||||
| Restaurant Activity: | |||||||||||||||||||
| Company-owned restaurants at end of period | 380 | 381 | 389 | 391 | 395 | ||||||||||||||
| Franchise restaurants at end of period | 76 | 77 | 68 | 67 | 62 | ||||||||||||||
| Revenue Data: | |||||||||||||||||||
| Company-owned average unit volume | $ | 891 | $ | 1,036 | $ | 1,171 | $ | 1,188 | $ | 1,201 | |||||||||
| Franchise average unit volume | $ | 781 | $ | 994 | $ | 1,186 | $ | 1,184 | $ | 1,191 | |||||||||
| Company-owned comparable restaurant sales | (30.1 | )% | (7.0 | )% | 1.4 | % | 2.2 | % | 4.8 | % | |||||||||
| Franchise comparable restaurant sales | (35.4 | )% | (8.9 | )% | 1.8 | % | 1.6 | % | 3.7 | % | |||||||||
| System-wide comparable restaurant sales | (30.9 | )% | (7.2 | )% | 1.5 | % | 2.1 | % | 4.6 | % | |||||||||
Reconciliations of Non-GAAP Measurements to GAAP Results
Noodles & Company
Reconciliation of Net (Loss) Income to EBITDA and Adjusted EBITDA
(in thousands, unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | ||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
| Net (loss) income | $ | (13,478 | ) | $ | 438 | $ | (19,313 | ) | $ | (1,413 | ) | ||||
| Depreciation and amortization | 5,397 | 5,661 | 10,732 | 11,168 | |||||||||||
| Interest expense, net | 920 | 800 | 1,888 | 1,561 | |||||||||||
| Provision for income taxes | 33 | — | 46 | — | |||||||||||
| EBITDA | $ | (7,128 | ) | $ | 6,899 | $ | (6,647 | ) | $ | 11,316 | |||||
| Restaurant impairments, closure costs and asset disposals | 2,558 | 2,884 | 3,614 | 3,304 | |||||||||||
| Stock-based compensation expense | 1,094 | 1,155 | 1,253 | 1,881 | |||||||||||
| Fees and costs related to transactions and other acquisition/disposition costs | 73 | — | 162 | 36 | |||||||||||
| Severance costs | 89 | — | 89 | — | |||||||||||
| Adjusted EBITDA | $ | (3,314 | ) | $ | 10,938 | $ | (1,529 | ) | $ | 16,537 | |||||
______________________________
EBITDA and adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net (loss) income or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies. These measures are presented because we believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for evaluating our ongoing results of operations.
EBITDA is calculated as net (loss) income before interest expense, provision (benefit) for income taxes and depreciation and amortization. Adjusted EBITDA further adjusts EBITDA to reflect the eliminations shown in the table above.
EBITDA and adjusted EBITDA are presented because: (i) we believe they are useful measures for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and restaurant impairments, closure costs and asset disposals and (ii) we use adjusted EBITDA internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare our performance to that of our competitors. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structures and cost of capital (which affect interest expense and income tax rates) and differences in book depreciation of property, plant and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management believes that adjusted EBITDA facilitates company-to-company comparisons within our industry by eliminating some of these foregoing variations. Adjusted EBITDA as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items.
Noodles & Company
Reconciliation of Net (Loss) Income to Adjusted Net (Loss) Income
(in thousands, except share and per share data, unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | ||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
| Net (loss) income | $ | (13,478 | ) | $ | 438 | $ | (19,313 | ) | $ | (1,413 | ) | ||||
| Restaurant impairments, divestitures and closure costs (a) | 2,267 | 2,429 | 2,707 | 2,700 | |||||||||||
| Fees and costs related to transactions and other acquisition/disposition costs (b) | 73 | — | 162 | — | |||||||||||
| Severance costs | 89 | — | 89 | — | |||||||||||
| Tax adjustments, net (c) | 2,948 | (759 | ) | 4,362 | (341 | ) | |||||||||
| Adjusted net (loss) income | $ | (8,101 | ) | $ | 2,108 | $ | (11,993 | ) | $ | 946 | |||||
| (Loss) earnings per Class A and Class B common stock, combined | |||||||||||||||
| Basic | $ | (0.30 | ) | $ | 0.01 | $ | (0.44 | ) | $ | (0.03 | ) | ||||
| Diluted | $ | (0.30 | ) | $ | 0.01 | $ | (0.44 | ) | $ | (0.03 | ) | ||||
| Adjusted (loss) income per Class A and Class B common stock, combined (d) | |||||||||||||||
| Basic | $ | (0.18 | ) | $ | 0.05 | $ | (0.27 | ) | $ | 0.02 | |||||
| Diluted | $ | (0.18 | ) | $ | 0.05 | $ | (0.27 | ) | $ | 0.02 | |||||
| Weighted average Class A and Class B common stock outstanding, combined (d) | |||||||||||||||
| Basic | 44,212,751 | 43,964,175 | 44,177,648 | 43,955,580 | |||||||||||
| Diluted | 44,212,751 | 45,075,888 | 44,177,648 | 45,056,026 | |||||||||||
_____________________________
Adjusted net (loss) income is a supplemental measure of financial performance that is not required by or presented in accordance with GAAP. We define adjusted net (loss) income as net (loss) income plus the impact of adjustments and the tax effects of such adjustments. Adjusted net (loss) income is presented because management believes it helps convey supplemental information to investors regarding our performance, excluding the impact of special items that affect the comparability of results in past quarters to expected results in future quarters. Adjusted net (loss) income as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted net (loss) income should not be construed as an inference that our future results will be unaffected by excluded or unusual items. Our management uses this non-GAAP financial measure to analyze changes in our underlying business from quarter to quarter based on comparable financial results.
| (a) | Reflects the adjustment to eliminate the impact of impairing restaurants, divestiture costs and ongoing closure costs recognized during the first two quarters of 2020 and 2019. Both periods include ongoing closure costs from restaurants closed in previous years. These expenses are included in the “Restaurant impairments, closure costs and asset disposals” line in the Condensed Consolidated Statements of Operations. | |
| (b) | Reflects the adjustment to eliminate expenses related to certain corporate transactions in the first two quarters of 2020. | |
| (c) | Reflects the adjustment to normalize the impact of the valuation allowance that affects our annual effective tax rate and the tax impact of the other adjustments discussed in (a) through (c) above. | |
| (d) | Adjusted per share amounts are calculated by dividing adjusted net income by the basic and diluted weighted average shares outstanding. |
Noodles & Company
Reconciliation of Operating Loss to Restaurant Contribution
(in thousands, unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | ||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||
| (Loss) income from operations | $ | (12,525 | ) | $ | 1,238 | $ | (17,379 | ) | $ | 148 | |||||
| Less: Franchising royalties and fees, and other | 136 | 1,332 | 1,768 | 2,613 | |||||||||||
| Plus: General and administrative | 10,034 | 11,848 | 20,588 | 21,988 | |||||||||||
| Depreciation and amortization | 5,397 | 5,661 | 10,732 | 11,168 | |||||||||||
| Pre-opening | 71 | 65 | 144 | 65 | |||||||||||
| Restaurant impairments, closure costs and asset disposals | 2,558 | 2,884 | 3,614 | 3,304 | |||||||||||
| Restaurant contribution | $ | 5,399 | $ | 20,364 | $ | 15,931 | $ | 34,060 | |||||||
| Restaurant contribution margin | 6.7 | % | 17.1 | % | 8.9 | % | 15.0 | % | |||||||
_____________________________
Restaurant contribution represents restaurant revenue less restaurant operating costs, which are the cost of sales, labor, occupancy and other operating items. Restaurant contribution margin represents restaurant contribution as a percentage of restaurant revenue. Restaurant contribution and restaurant contribution margin are non-GAAP measures that are neither required by, nor presented in accordance with GAAP, and the calculations thereof may not be comparable to similar measures reported by other companies. These measures are supplemental measures of the operating performance of our restaurants and are not reflective of the underlying performance of our business because corporate-level expenses are excluded from these measures.
Restaurant contribution and restaurant contribution margin have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Management does not consider these measures in isolation or as an alternative to financial measures determined in accordance with GAAP. However, management believes that restaurant contribution and restaurant contribution margin are important tools for investors and other interested parties because they are widely-used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency and performance. Management also uses these measures as metrics to evaluate the profitability of incremental sales at our restaurants, restaurant performance across periods, and restaurant financial performance compared with competitors.
Contacts:
Investor Relations
investorrelations@noodles.com
Media
720-214-1927
press@noodles.com
Source:
Source: Noodles & Company