Benchmark Co. analyst Todd Brooks maintained a Buy rating on Noodles & Co (NDLS – Research Report) on March 10 and set a price target of $3.00.
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Todd Brooks’s rating is based on the positive outlook for Noodles & Co’s upcoming menu transformation and rebranding efforts. The company has reported a promising same-store sales growth of over 3%, which is partly driven by the introduction of new menu items. This growth is expected to continue as more menu items are launched, and management has expressed confidence in achieving a mid-single-digit percentage increase in same-store sales for the upcoming fiscal year.
Additionally, the investment in higher quality ingredients, despite increasing food costs, has been met with positive customer feedback, indicating potential for improved customer satisfaction and value perception. Furthermore, the company is strategically closing underperforming locations to focus on more viable outlets, and recent improvements in third-party delivery channels suggest a recovery in that revenue stream. These factors combined contribute to Todd Brooks’s optimistic Buy rating for Noodles & Co’s stock.
According to TipRanks, Brooks is an analyst with an average return of -4.7% and a 34.76% success rate. Brooks covers the Consumer Cyclical sector, focusing on stocks such as Cracker Barrel, BJ’s Restaurants, and Denny’s.
In another report released on March 7, Truist Financial also maintained a Buy rating on the stock with a $3.00 price target.