Noodles & Co. shares drop 20% after restaurant chain tipped to surprise quarterly loss

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Shares of Noodles & Co. NDLS,
-5.43%
fell more than 20% in the extended session on Wednesday after the restaurant chain reported a surprise quarterly loss and revenue that beat expectations, saying it was facing staff shortages and other challenges related to a surge of COVID-19 late last year. Noodles & Co. said it lost $4.7 million, or 10 cents per share, in the fourth quarter, compared with a loss of $3.8 million, or 9 cents per share, in the year-ago quarter. Adjusted for one-time items, the company lost 5 cents per share. Revenue rose 7.1% to $114.8 million, the company said. The FactSet consensus called for earnings of 8 cents per share on sales of $121 million. “While the underlying fundamentals of the business remained strong, fourth quarter results were impacted by personnel issues” as well as an increase in COVID-19 cases in areas where most of the workers are located. its operations, the upper Midwest and the Rocky Mountain region, in November and early December, Noodles & Co. said. The company said the temporary closures and reduced hours of operation impacted its revenue approximately $8 million. “We expect near-term pressures in the first quarter due to the omicron variant, as well as in the first half due to commodity inflation, but we are confident that we will be successful in navigating this environment. “, said the company. Shares of Noodles & Co. ended the regular trading day down 5.4%.

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