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Noodles & Co Reports Increased Loss and Misses Estimates

Noodles & Co faces challenges as it reports an increased loss in its fourth quarter. The company reported a loss of $9.69 million, missing analyst estimates and showing a decline in revenue. Investors may need to reconsider their positions.

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AI Rating:   4
Losses and Earnings Per Share (EPS): Noodles & Co reported a bottom line of -$9.69 million, translating to -$0.21 per share. This is an increase in losses from -$6.14 million, or -$0.14 per share, from the previous year. The adjusted earnings also came in negative at -$6.72 million, or -$0.15 per share, which misses the expected -$0.12 per share by analysts. This indicates a concerning trend in profitability for the company.

Revenue Growth: The company's revenue shrank by 2.1%, declining from $124.32 million last year to $121.77 million this year. A decrease in revenue can contribute to negative sentiment in the stock market, especially when it coincides with rising losses. Investors generally perceive such declines as a warning sign for the company’s operational health. Overall, the performance metrics reveal that Noodles & Co is not only struggling with profitability but is also facing challenges in its sales figures.