Noodles & Company · NASDAQ:NDLS
Noodles & — Investor Presentation (February 2017)
13 slides from Noodles &'s investor presentation, February 2017
Slide 1: Investor Presentation February 2017
Investor Presentation February 2017
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. In some cases, you can identify forward-looking statements by terms such as "
Slide 3: A World of Flavors Under One Roof
A World of Flavors Under One Roof Differentiated Restaurant Concept Globally-Inspired Flavors From Near to Far Attractive Value Proposition in Fast Casual Warm and Inviting Dining Experience Unique Product Offering Resonates with Consumers Engaging Team Members Deliver a Personal Touch 2
Slide 4: Financial Update
Financial Update • Key highlights for the fourth quarter of 2016(1) include: ‒ Total revenue increased 10.0% - 11.0% to $129.0 - $130.0 million ‒ Comparable restaurant sales decreased approximately 1.3% systemwide, including a 1.8% decline at company-owned restaurants and a 2.0% increase at franchis
Slide 5: Recent Momentum
Recent Momentum Corporate Reorganization Comparable Restaurant Sales Improvement Expected to generate ~$2.5 million in annual G&A savings Performance improved relative to industry average and franchise restaurants recorded positive comparable restaurant sales in Q3 and Q4 Continued Strength in Core
Slide 6: Enhancing the Customer Experience
Enhancing the Customer Experience • Our focus on improving execution, increasing labor SMG Guest Satisfaction Top-Box productivity and regaining the brand’s culinary prowess has resonated with customers 71% • Guest satisfaction scores have increased by 500 bps since 66% August ‒ Includes a 400 bps e
Slide 7: Our Path Forward
Our Path Forward • Our operating performance has been challenged by a small subset of restaurants that has significantly underperformed systemwide averages, as measured by AUV, Restaurant Contribution margin and cash flow • Many of these underperforming restaurants opened recently in newer markets,
Slide 8: Closing Underperforming Restaurants
Closing Underperforming Restaurants Closure Strategy Key Closure Stats(1) • We intend to close approximately 55 restaurants, the majority of which are located in newer markets with lower brand awareness • Closures anticipated to occur in Q1 and Q2 2017 • We currently anticipate taking a non-cash imp
Slide 9: Optimize Go-Forward Restaurant Portfolio
Optimize Go-Forward Restaurant Portfolio Reduce Company-Owned Restaurant Growth • We plan on opening 12 to 15 company-owned restaurants in 2017 ‒ Front-loaded, with eight openings anticipated in Q1 • Most new restaurant openings are in well-established markets with existing brand awareness and above
Slide 10: Restaurant Initiatives
Restaurant Initiatives Streamline and Upgrade Menu Taking bold, deliberate steps to strengthen culinary relevance and create fresher, more on-trend offerings Increase Guest Check Including protein in entrees increases per person spend and reduces customer “sticker shock” Introduce Equipment and Labo
Slide 11: Funding the Plan
Funding the Plan Private Placement of Preferred Stock and Warrants $18.5 million issued to L Catterton on February 8, 2017 Amendment to the Company’s Credit Agreement Increases financial and operational flexibility Additional Capital Raise We are currently pursuing additional paths to raise funding
Slide 12: Our Goals for Repositioning the Business
Our Goals for Repositioning the Business Improving Restaurant-Level Cash Flow and Profitability Refocusing Management’s Attention on the Core Restaurant Base Building a Stronger Unit Base in Core Markets Realizing Superior Restaurant-Level Execution with Significant Labor Savings Increasing Average
Slide 13: Slide 13
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