Noodles & Company NDLS is scheduled to release fourth-quarter 2024 results on March 6, 2025.

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In the last reported quarter, the company reported a negative earnings surprise of 71.4%.

How are Estimates Placed for NDLS?

The Zacks Consensus Estimate for fourth-quarter loss per share is pegged at 13 cents. In the prior-year quarter, NDLS reported a loss per share of 7 cents.

For revenues, the consensus mark is pegged at $123.3 million. The metric indicates a slight decline of 0.8% from the year-ago quarter’s figure.

Let us analyze the factors that might have impacted the company’s performance in the quarter to be reported.

Factors to Note Ahead of NDLS’ Q4 Results

Noodles & Company’s revenues are expected to have declined year over year in the fourth quarter due to industry-wide volatility caused by a weak consumer environment. The company is likely to have faced intense competition, leading to higher discounting.

NDLS’ fourth-quarter top line is likely to reflect a deceleration in comparable restaurant sales owing to reduced winter and holiday traffic. The Zacks Consensus Estimates for fourth-quarter Restaurant revenues are pegged at $121 million, indicating a decline from $122 million reported in the prior-year quarter.

Nonetheless, emphasis on sales-driving initiatives, including operational improvements to enhance guest experience, menu innovation and controlled discounting, is likely to have supported performance. Strategic investments in loyalty programs, digital media and third-party marketplace spending are likely to have aided the company’s performance in the fourth quarter.

The consensus mark for Franchising royalties and fee revenues is pegged at $2.7 million, implying an increase from $2.5 million reported in the prior-year quarter.

Meanwhile, inflationary pressures, including food, labor, energy costs and construction materials, are likely to have negatively impacted the bottom line in the to-be-reported quarter.

What Our Model Says About NDLS 

Our proven model does not predict an earnings beat for Noodles & Company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.

Earnings ESP of NDLS: Noodles & Company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NDLS’ Zacks Rank: The company has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings

Here are some companies in the Zacks Retail-Wholesale sector which, according to our model, have the right combination of elements to post an earnings beat.

CAVA Group, Inc. CAVA has an Earnings ESP of +0.17% and a Zacks Rank of 3 at present.

CAVA is expected to register a 16.7% year over year increase in earnings for the to-be-reported quarter. It company reported better-than-expected earnings in the trailing three out of four quarters and missed once, the average surprise being 62.6%.

Brinker International, Inc. EAT currently has an Earnings ESP of +2.59% and a Zacks Rank of 1.

EAT reported an earnings beat in the trailing three out of four quarters and missed once, the average surprise being 24.7%. Its earnings for the to-be-reported quarter are expected to grow 91.1% year over year.

Yum! Brands, Inc. YUM currently has an Earnings ESP of +0.69% and a Zacks Rank of 3.

YUM’s earnings for the to-be-reported quarter are expected to grow 9.6% year over year. Its earnings topped the consensus mark in two of the trailing four quarters and missed on two occasions, with negative average surprise of 0.7%.

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This article originally published on Zacks Investment Research (zacks.com).

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