Noodles & Co Stock Tumbles: CFO Resigns, Analyst Professed A Distaste On Low Traffic

Stephens & Co analyst Joshua Long downgraded Noodles & Co NDLS to Equal-Weight from Overweight at a reduced price target of $5 from $7.
The analyst is bearish on lower-than-expected traffic trends in the Q2 to date period and the departure of the CFO.
The company announced the resignation of CFO Carl Lukach, effective June 9, 2023, and Dave Boennighausen as an interim CFO.
Nevertheless, Long still believes in the company's long-term growth prospects on expected improvements in culinary and operational capabilities and strong company culture.
Last month, NDLS reported Q1 2023 revenues of $126.10 million, which missed the consensus of $126.41 million, while the adjusted EPS loss of (0.05) was better than the consensus loss of (0.08).
Long Expects revenues of $542.7 million and an adjusted EPS of $0.15 for 2023.
The analyst estimates revenues of $608.5 million and an adjusted EPS of $0.45 for 2024.
Price Action: NDLS shares are trading lower by 13.7% at $3.29 on the last check Friday.
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