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System-wide Comparable Restaurant Sales Growth of 5.1%;
Record Company Average Unit Volumes of
Key highlights for the second quarter of 2022 versus the second quarter of 2021 include:
- Total revenue increased 4.3% to
$131.1 million from$125.6 million in the second quarter of 2021. - Comparable restaurant sales increased 5.1% system-wide, comprised of a 5.1% increase at company-owned restaurants and a 5.3% increase at franchise restaurants.
- Company Average Unit Volumes (“AUV”) of
$1.42 million represented a 5.3% increase compared to the second quarter of 2021 and an 18.3% increase versus the second quarter of 2019. - Net income was
$1.3 million , or$0.03 per diluted share, compared to$5.7 million , or$0.12 per diluted share in the second quarter of 2021. - Operating margin was 1.4% compared to 4.9% in the second quarter of 2021.
- Restaurant contribution margin(1) was 15.5% compared to 18.9% in the second quarter of 2021, which was inclusive of an approximately 300 bps increase in cost of goods sold.
- Adjusted EBITDA(1) was
$11.2 million , a decrease of$2.6 million compared to the second quarter of 2021. - Adjusted net income(1) was
$2.4 million , or$0.05 per diluted share compared to adjusted net income of$6.0 million , or$0.13 per diluted share, in the second quarter of 2021. - Three new company-owned restaurants opened in the second quarter of 2022.
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(1) Restaurant contribution margin, EBITDA, adjusted EBITDA, and adjusted net income (loss) are non-GAAP measures. Reconciliations of operating income (loss) to restaurant contribution margin, net income (loss) to EBITDA and adjusted EBITDA and net income (loss) to adjusted net income (loss) are included in the accompanying financial data. See “Non-GAAP Financial Measures.”
“We are pleased with our second quarter results, which were highlighted by record level average unit volumes of
Boennighausen continued, “Our second quarter highlights how strongly
Boennighausen concluded, “In addition to our unit growth goals, we remain confident in our accelerated growth objectives as AUVs are fast approaching the
Second Quarter 2022 Financial Results
Total revenue grew 4.3% to
In the second quarter of 2022, system-wide comparable restaurant sales increased 5.1%, comprised of a 5.1% increase at company-owned restaurants and a 5.3% increase at franchise restaurants. Comparable restaurant sales reflect continued momentum in our in-person channels, in addition to price increases in our core menu. Digital sales during the second quarter accounted for 51.7% of total revenue. Company average unit volumes were
Operating margin decreased to 1.4% in the second quarter of 2022 from 4.9% in the second quarter of 2021, primarily due to increased inflation costs associated with both food and wages.
Restaurant contribution margin decreased to 15.5% in the second quarter of 2022, compared to 18.9% in the second quarter of 2021. This decrease was primarily due to an approximately 300 bps increase in costs of goods sold, due to overall higher food and ingredient commodity pricing, particularly with our protein costs, offset slightly by supply chain savings initiatives.
There were three company-owned restaurant openings during the second quarter of 2022 and we did not close any company-owned restaurants. There were 456 restaurants system-wide at the end of the second quarter 2022, comprised of 363 company-owned restaurants and 93 franchise restaurants.
For the second quarter of 2022, the Company reported net income of
Adjusted net income was
Credit Facility Amendment:
Subsequent to the end of the second quarter, on
Liquidity Update:
As of
Business Outlook:
The Company is providing the following expectations for the fiscal year 2022:
- Third quarter 2022 total revenue of
$125.5 million to$128.5 million ; - Third quarter 2022 comparable restaurant sales in the low-single digits;
- Third quarter 2022 restaurant level contribution margin of 15.0% to 15.5%;
- Full year 2022 unit growth of approximately 5%, versus previous expectations of 8%; and
- Full year 2022 capital expenditures of
$30 to$33 million in 2022, versus a previous range of$30 to$34 million .
Based on the Company’s strategic framework and underlying momentum, the Company is reiterating its accelerated growth objectives. These accelerated growth objectives include the following:
- System-wide unit growth of at least 10% annually beginning in 2023 on a targeted path to at least 1,500 units;
- Average unit volumes of
$1.50 million by 2024; and - Restaurant contribution margin of 20% by 2024.
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 Volumes — represent the average annualized sales of all company-owned restaurants for a given time period. AUVs are 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. Based on this calculation, temporarily closed restaurants are excluded from the definition of AUV, however restaurants with temporarily reduced operating hours are included. This measurement allows management to assess changes in consumer traffic and per person spending patterns at our restaurants. In addition to the factors that impact comparable restaurant sales, AUVs can be further impacted by effective real estate site selection and maturity and trends within new markets.
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. Restaurants that were temporarily closed or operating at reduced hours or dining capacity due to the COVID-19 pandemic remained in comparable restaurant sales.
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 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 expectations with respect to unit growth and planned restaurant opening, projected capital expenditures, and potential volatility through 2022 due to the current staffing and supply chain environment, including the potential impact of commodity and wage inflation. Our actual results may differ materially from those anticipated in these forward-looking statements due to reasons including, but not limited to, our ability to sustain our overall growth, in particular, our digital sales growth; our ability to open new restaurants on schedule and cause those newly opened restaurants to be successful; 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; the success of our marketing efforts, including our ability to successfully introduce new products; current economic conditions including any impact from inflation or an economic recession; price and availability of commodities and other supply chain challenges; our ability to adequately staff our restaurants; changes in labor costs; the impact of the COVID-19 pandemic, including on our revenue and balance sheets; other conditions beyond our control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting our customers or food supplies; and consumer reaction to industry related public health issues and health pandemics, including perceptions of food safety. 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 | |||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
| Revenue: | ||||||||||||||||
| Restaurant revenue | $ | 128,274 | $ | 123,715 | $ | 238,235 | $ | 231,459 | ||||||||
| Franchising royalties and fees, and other | 2,793 | 1,934 | 5,394 | 3,767 | ||||||||||||
| Total revenue | 131,067 | 125,649 | 243,629 | 235,226 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||||||||||||||
| Cost of sales | 35,664 | 30,805 | 66,435 | 57,782 | ||||||||||||
| Labor | 38,828 | 36,926 | 74,321 | 71,232 | ||||||||||||
| Occupancy | 11,074 | 11,519 | 22,223 | 23,168 | ||||||||||||
| Other restaurant operating costs | 22,792 | 21,082 | 44,658 | 41,287 | ||||||||||||
| General and administrative | 12,744 | 12,978 | 24,584 | 23,907 | ||||||||||||
| Depreciation and amortization | 5,763 | 5,576 | 11,484 | 11,163 | ||||||||||||
| Pre-opening | 353 | 163 | 761 | 221 | ||||||||||||
| Restaurant impairments, closure costs and asset disposals | 1,971 | 390 | 3,360 | 1,621 | ||||||||||||
| Total costs and expenses | 129,189 | 119,439 | 247,826 | 230,381 | ||||||||||||
| Income (loss) from operations | 1,878 | 6,210 | (4,197 | ) | 4,845 | |||||||||||
| Interest expense, net | 489 | 498 | 926 | 1,120 | ||||||||||||
| Income (loss) before taxes | 1,389 | 5,712 | (5,123 | ) | 3,725 | |||||||||||
| Provision for (benefit from) income taxes | 44 | 29 | (39 | ) | 19 | |||||||||||
| Net income (loss) | $ | 1,345 | $ | 5,683 | $ | (5,084 | ) | $ | 3,706 | |||||||
| Earnings (loss) per Class A and Class B common stock, combined | ||||||||||||||||
| Basic | $ | 0.03 | $ | 0.12 | $ | (0.11 | ) | $ | 0.08 | |||||||
| Diluted | $ | 0.03 | $ | 0.12 | $ | (0.11 | ) | $ | 0.08 | |||||||
| Weighted average shares of Class A and Class B common stock outstanding, combined: | ||||||||||||||||
| Basic | 45,881,354 | 45,506,476 | 45,803,927 | 45,303,160 | ||||||||||||
| Diluted | 46,108,720 | 46,246,169 | 45,803,927 | 45,992,119 | ||||||||||||
Noodles & Company
Condensed Consolidated Statements of Operations as a Percentage of Revenue
(unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
| Revenue: | ||||||||||||
| Restaurant revenue | 97.9 | % | 98.5 | % | 97.8 | % | 98.4 | % | ||||
| Franchising royalties and fees, and other | 2.1 | % | 1.5 | % | 2.2 | % | 1.6 | % | ||||
| 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 | 27.8 | % | 24.9 | % | 27.9 | % | 25.0 | % | ||||
| Labor | 30.3 | % | 29.8 | % | 31.2 | % | 30.8 | % | ||||
| Occupancy | 8.6 | % | 9.3 | % | 9.3 | % | 10.0 | % | ||||
| Other restaurant operating costs | 17.8 | % | 17.0 | % | 18.7 | % | 17.8 | % | ||||
| General and administrative | 9.7 | % | 10.3 | % | 10.1 | % | 10.2 | % | ||||
| Depreciation and amortization | 4.4 | % | 4.4 | % | 4.7 | % | 4.7 | % | ||||
| Pre-opening | 0.3 | % | 0.1 | % | 0.3 | % | 0.1 | % | ||||
| Restaurant impairments, closure costs and asset disposals | 1.5 | % | 0.3 | % | 1.4 | % | 0.7 | % | ||||
| Total costs and expenses | 98.6 | % | 95.1 | % | 101.7 | % | 97.9 | % | ||||
| Income (loss) from operations | 1.4 | % | 4.9 | % | (1.7 | )% | 2.1 | % | ||||
| Interest expense, net | 0.4 | % | 0.4 | % | 0.4 | % | 0.5 | % | ||||
| Income (loss) before taxes | 1.1 | % | 4.5 | % | (2.1 | )% | 1.6 | % | ||||
| Provision for (benefit from) income taxes | — | % | — | % | — | % | — | % | ||||
| Net income (loss) | 1.0 | % | 4.5 | % | (2.1 | )% | 1.6 | % | ||||
_______________________
(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 | ||||||||
2022 |
2021 |
|||||||
| Balance Sheet Data | ||||||||
| Total current assets | $ | 20,495 | $ | 22,562 | ||||
| Total assets | 338,581 | 341,459 | ||||||
| Total current liabilities | 69,967 | 76,582 | ||||||
| Total long-term debt | 31,142 | 18,931 | ||||||
| Total liabilities | 303,694 | 303,826 | ||||||
| Total stockholders’ equity | 34,887 | 37,633 | ||||||
| Fiscal Quarter Ended | ||||||||||||||||||||
2022 |
2022 |
2021 |
2021 |
2021 |
||||||||||||||||
| Selected Operating Data | ||||||||||||||||||||
| Restaurant Activity: | ||||||||||||||||||||
| Company-owned restaurants at end of period | 363 | 360 | 372 | 374 | 374 | |||||||||||||||
| Franchise restaurants at end of period | 93 | 93 | 76 | 76 | 77 | |||||||||||||||
| Revenue Data: | ||||||||||||||||||||
| Company-owned average unit volume | $ | 1,421 | $ | 1,249 | $ | 1,310 | $ | 1,377 | $ | 1,350 | ||||||||||
| Franchise average unit volume | $ | 1,276 | $ | 1,225 | $ | 1,320 | $ | 1,347 | $ | 1,240 | ||||||||||
| Company-owned comparable restaurant sales | 5.1 | % | 5.3 | % | 9.5 | % | 15.3 | % | 55.7 | % | ||||||||||
| Franchise comparable restaurant sales | 5.3 | % | 11.9 | % | 20.8 | % | 21.0 | % | 63.8 | % | ||||||||||
| System-wide comparable restaurant sales | 5.1 | % | 6.4 | % | 11.2 | % | 16.3 | % | 56.8 | % | ||||||||||
Reconciliations of Non-GAAP Measurements to GAAP Results
Noodles & Company
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
(in thousands, unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
| Net income (loss) | $ | 1,345 | $ | 5,683 | $ | (5,084 | ) | $ | 3,706 | |||||||
| Depreciation and amortization | 5,763 | 5,576 | 11,484 | 11,163 | ||||||||||||
| Interest expense, net | 489 | 498 | 926 | 1,120 | ||||||||||||
| Provision for (benefit from) income taxes | 44 | 29 | (39 | ) | 19 | |||||||||||
| EBITDA | $ | 7,641 | $ | 11,786 | $ | 7,287 | $ | 16,008 | ||||||||
| Restaurant impairments, closure costs and asset disposals | 1,971 | 390 | 3,360 | 1,621 | ||||||||||||
| Stock-based compensation expense | 1,499 | 1,611 | 2,668 | 2,413 | ||||||||||||
| Fees and costs related to transactions and other acquisition/disposition costs | 63 | — | 63 | — | ||||||||||||
| Adjusted EBITDA | $ | 11,174 | $ | 13,787 | $ | 13,378 | $ | 20,042 | ||||||||
______________________________
EBITDA and adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net income (loss) 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 income (loss) before interest expense, provision 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 Income (Loss) to Adjusted Net Income (Loss)
(in thousands, except share and per share data, unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
| Net income (loss) | $ | 1,345 | $ | 5,683 | $ | (5,084 | ) | $ | 3,706 | |||||||
| Restaurant impairments, divestitures and closure costs(a) | 1,009 | 349 | 1,633 | 1,288 | ||||||||||||
| Fees and costs related to transactions and other acquisition/disposition costs(b) | 63 | — | 63 | — | ||||||||||||
| Tax impact of adjustments above(c) | (5 | ) | (1 | ) | (5 | ) | (6 | ) | ||||||||
| Adjusted net income (loss) | $ | 2,412 | $ | 6,031 | $ | (3,393 | ) | $ | 4,988 | |||||||
| Earnings (loss) per Class A and Class B common stock, combined | ||||||||||||||||
| Basic | $ | 0.03 | $ | 0.12 | $ | (0.11 | ) | $ | 0.08 | |||||||
| Diluted | $ | 0.03 | $ | 0.12 | $ | (0.11 | ) | $ | 0.08 | |||||||
| Adjusted earnings (loss) per Class A and Class B common stock, combined(d) | ||||||||||||||||
| Basic | $ | 0.05 | $ | 0.13 | $ | (0.07 | ) | $ | 0.11 | |||||||
| Diluted | $ | 0.05 | $ | 0.13 | $ | (0.07 | ) | $ | 0.11 | |||||||
| Weighted average Class A and Class B common stock outstanding, combined(d) | ||||||||||||||||
| Basic | 45,881,354 | 45,506,476 | 45,803,927 | 45,303,160 | ||||||||||||
| Diluted | 46,108,720 | 46,246,169 | 45,803,927 | 45,992,119 | ||||||||||||
_____________________________
Adjusted net income (loss) is a supplemental measure of financial performance that is not required by or presented in accordance with GAAP. We define adjusted net income (loss) as net income (loss) plus the impact of 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 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 income (loss) as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted net income (loss) 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 2022 and 2021. 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 adjustments to eliminate the expenses related to certain corporate transactions.
(c) Reflects the tax impact of the other adjustments discussed in (a) and (b) above using the estimated annual effective tax rate. Note that the amounts in 2021 have been adjusted to reflect the respective effective tax rate.
(d) Adjusted per share amounts are calculated by dividing adjusted net income (loss) by the basic and diluted weighted average shares outstanding.
Noodles & Company
Reconciliation of Operating Income (Loss) to Restaurant Contribution
(in thousands, unaudited)
| Fiscal Quarter Ended | Two Fiscal Quarters Ended | |||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
| Income (loss) from operations | $ | 1,878 | $ | 6,210 | $ | (4,197 | ) | $ | 4,845 | |||||||
| Less: Franchising royalties and fees, and other | 2,793 | 1,934 | 5,394 | 3,767 | ||||||||||||
| Plus: General and administrative | 12,744 | 12,978 | 24,584 | 23,907 | ||||||||||||
| Depreciation and amortization | 5,763 | 5,576 | 11,484 | 11,163 | ||||||||||||
| Pre-opening | 353 | 163 | 761 | 221 | ||||||||||||
| Restaurant impairments, closure costs and asset disposals | 1,971 | 390 | 3,360 | 1,621 | ||||||||||||
| Restaurant contribution | $ | 19,916 | $ | 23,383 | $ | 30,598 | $ | 37,990 | ||||||||
| Restaurant contribution margin | 15.5 | % | 18.9 | % | 12.8 | % | 16.4 | % | ||||||||
_____________________________
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
press@noodles.com
Source:
Source: Noodles & Company