NDLS - Earnings call transcript Q4 2018

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Operator

Good afternoon and welcome to today's Noodles & Company Fourth Quarter 2018 Earnings Conference Call. All participants are now in a listen-only mode. After the presenters' remarks, there will be a question-and-answer session.

As a reminder, this call is being recorded. I will now introduce Noodles & Company's Chief Financial Officer, Ken Kuick. Sir?

Ken Kuick

afternoon, to good XXXX fourth and call. earnings you, everyone. our Welcome quarter Thank

this Paul I afternoon Chairman; me a with Here are matters. Boennighausen, start going Chief few to regulatory and Murphy, our Executive like Officer. would by over Dave Executive our

meaning forward-looking in subsequent cause or Annual to our and contained actual risks and the Commission, have Form versus Form I documents of we differ on a Report considered uncertainties you remarks and response including the risks of XXXX of filings subsequent our actual in results Such statements. materially company's events relating factors Litigation the forward-looking uncertainties. statement such Harbor and with for to questions, from items, conference make on guidance year afternoon's company Act and These statements forth could future results and of be to time the to statements. that XX-K company. identify we due from differ Securities to XXXX about are performance materially The in performance report from opening within considered release statement of Safe XXXX set During the XXXX. the that files cautionary Private documents this including and the results regarding future related the future Securities SEC financial this each your company's the important or to could the those the in call, our projections, year filings forward-looking may our anticipated of statements are portions news the with details specifically events forward-looking and part fiscal annual number the and in refer only contain or XX-K the projections company's time made. its should fiscal Exchange Any those projections Reform statements a to and

During measures A be the our measures it call, a we the our at GAAP. in we believe reconciliation I can And in performance. the turn measures XXXX not financial for substitute Executive These isolation prepared with as non-GAAP results should considered in comparable evaluating Murphy, quarter fourth our GAAP which of in operating useful with accordance measures be would will our release available like discuss company's earnings supplemental most Paul is directly over to information. these Chairman. that, to or to

Paul Murphy

good and Ken you, afternoon. Thank

& to sales progress In momentum company Solid the Noodles implement kept we as quarter for long-term in comparable strategic our continue areas. several strong key made Company fourth roadmap. in year significant a the XXXX,

introduction took how of redefining zucchini an health the noodle, first perspective. step a through the First, brand important in the from resonates the company

zucchini focus that significant with quarters, the core amount relatively platform a noodle past noodle our our the have discussed XXXX. build entirety we traditional unhealthy and our As we better-for-you significant this to are early pasta two our high addressed dishes. for awareness of its continued in the perception of the we’ve through noodles over has still due opportunity and to and Even believe success, expand innovation, carbohydrates

grew quick more online ordering Second, strengths QX sales our Through off in of on to units the of inherent with capitalize evolution of began pickup during continued off implementation brand's effectively XXXX. XX% the company the the XXXX, premise. and of app to premise shelving

continuously progress In the way momentum the effectiveness our to leadership proud strong pipeline XXXX most to key and results country I to both and the over team initiatives. in even sustain strategic importantly, and this as the team profit initiatives I perspective practice the made perhaps more for XXXX, our leadership include our our our best Dave of now around through build is come. as long-term culinary operational necessary pipeline. to company and well of solidifying extremely in and a to innovation and hires. a accomplished In my throughout improve Third provide turn organizational our to believe to I've of tremendous years XXXX shareholder discipline strongly and continuous quest for bring. career a leadership the and am sales discipline that build Examples made building come our combination the execution, several feel testing excited value in XXXX. in will strides XXXX work more results I menu what best our the are will it pricing building over company disciplined team on to

Dave Boennighausen

you, Thank Paul.

with sustain we're the grew X.X% our X.X% growth franchise increase and which of quarter comprised Paul mentioned, of company-owned fourth system-wide momentum during a of X% sales comparable pleased of As restaurants a increase and locations. XXXX,

and Our is consistent was once of including the our again strategy the working parts. sales of fourth areas key across geographies growth across vast that majority the in several our is business, day further quarter and proof

unit margins points of $XX,XXX XX%. to $X,XXX,XXX XX restaurant and to increased a volumes full-year meanwhile basis average the company-owned For XXXX, increased restaurant level

expand given are our of on space provide brand. to with XXXX the culinary, off restaurant and execution inherent our strategic approach earnings through platform-based financial the operational strategy, people brand on company the and has also continued initiatives. centers metrics, I noodles variety want pleased our made of that affirm choice the is a and we to we the the several to culinary which believe in opportunity authority the that start strength with profile While in our progress premise, strengths significant across was key perspective, that were

ability mix began than the added platform testing it process the higher as will evolution later have we time to noodle our refresh, new zucchini substitute we actually introducing dishes. our as QX noted, the our today to vegetable Paul of our this was quarter anticipate our opportunity any menu Furthermore, believe introduction board note further our awareness to into for highlight we be As We we offering. offering. through in a of offerings significant that Zucchini build limited is and this Moreover, scampi one infused earlier next quarter we Shrimp second will during during the well zucchini launched we year of better-for-you the when It's important that XXXX last are our zucchini to product. menu. currently of

believe Looking menu and those a over that we've the more at check unlock pricing menu, value testing enhancing can structure brand. opportunities format months the past been holistically the new we several for in

felt price makes modified perspective. from Over the past to few between We years, hampered increases. line menu difficult offerings pricing our has taken differentiate only structure, modest which a by the it company pricing

our anticipate of easier menu making Our use testing has includes amongst categorization individual platforms, while clarify just our which perspective, refreshed. of guest expect dishes, mid a a menu the price, by of pricing increase running helps our comprehensive to boards guests X% our zucchini. and value From between make with as culinary of meal which highlighting our it results flavors format we menu menu, north nationwide XXXX. defines for perception brand been been currently test which our pricing offer, to and the menu menu roughly we item offering, an finally pricing, better May check this of the both to differentiated it testing the are We’ve average and move helps while when new following: the the believe within launching and X.X% value we for signature well a pleased very drive our as are

strength. in average and continue check innovate we to While XXXX and traffic drive initiatives anticipate menu off and that premise continue to our also our will beyond, we culinary around

year. off Paul increased grew want to ordering, sales quarter premise fourth over with point XXXX, the XX% QX, XXX the QX increase a strategy start surrounding the XXX during XXXX. of I sales which over increase a point of XX% As mentioned, basis basis of to online of during to prior

believe are opportunity pleased is we tremendous with and this We also growth, ahead. there

During will of eliminate begin to improvements orders. online restaurant XXXX, for friction pickup we in testing

our guests, to for year-end the to also improved guests engage online by marketing to and allowing needs experience for capabilities rewards ordering We re-launching towards a perspective. working our while of continue program relationship meet changing are

As opportunity. the see occasion we the continue on business, off premise also premise growth off for our capitalize we strength to significant of additional

One of be areas. offering soon we delivery, is our in trade of will XX% which these occasions

fourth the continues total X.X% and accounted for of sales delivery grow. During quarter, to

significant While delivery recognize associated certainly with offers the great costs it. also opportunity to sales, build we

will We how to ascertain pricing strategies different with might we of delivery delivery regard be impact months coming our testing profile. over margin to material fees on mitigate the

program, also to for begun sales. accounts currently re-launch of our opportunity to our the see during significant we which than catering, expand as anticipate increase in Just believe We there to sometime XXXX. total catering our opportunity X% sales, delivery we are necessary less work which we

currently number limited to targeting pickup also and seeing pickup incorporate of to our the windows, without great adaption the to plan we are remodels XX% the approximately premise, off their having restaurants and in to windows. appreciation car. our leave pick are of able year to during guests In up be from regards units new that with Finally restaurants to we order include windows have select of we

XXXX I strength bottom of us also and on we to improve our and opportunity is focus in as brand of continue and top-tier we employer meeting our the to to choice. objectives, to I’m XXXX execution grow and benefit industry. While The strengths will top fashion. would sustain confident is line engagement consistent the position well continuously proud it in training, culinary over in the technology and as members inherent ever for long-term Ken in work practice Noodles one strategy the we invest results discuss our and critical an than guidance the reliant industry. in improve restaurant we execution of results for the our in best turn friendliness our in more have a both anticipate our our We’ve the like as company our restaurant ability the are to reliable initiatives class, team XX,XXX right to Noodles recognize place to accomplishments the Again, right QX and to and to and enhancements allow places with operational premise performance menu off will team to core XXXX. in make to now and for the select and that organization, best our be success team of a to continue

Ken Kuick

and extremely Dave to for now ahead our have the working excited it's opportunities team three Paul, strategic just months and the us on Thanks, we and to Noodles of about Dave implementing over been and everyone. forward join with roadmap. nice look I’ve with I'm

X% X.X%. today's to As another growth release, noted with of strong system-wide, comparable sales lifting press comparable sales XXXX had we quarter in full-year

XXXX. into quarter fourth the carried the we're pleased P&L the solidly and felt in expectations that performance momentum our Our throughout within with was

year increase XXXX. offset the reduced X.X% we flat store to revenue of prior million relative count a as to year $XX.X For by XXXX, generated million, adjusted fiscal growth and the a $XXX.X comparable EBITDA roughly in was versus sales

Our restaurants comparable of quarter at comprised system-wide fourth and franchise X.X% locations. sales company-owned growth increase a X.X% at X% of was

sales modest X.X% product and the was the million every Labor Our fourth a Well, quarter in sold -- the late yet sales below more quarter in success a our $XX.X X.X%, ongoing expense XXXX. XXXX third-party the fourth time decreased points fees the from line comparable inflation of driven noodles. trend of operating sales benefit sales higher and flat fourth growth Occupancy which cost delivery frames, expected Leverage year. than our sales basis comparable our October leverage of by above more perspective, in basis was and throughout of quarter mix that across was and during year. XX.X%, began of fourth we weather nearly comparable strength had units .X% was quarter prior closing This our were of with basis quarter approximately growth positive, trend to quarter basis consistent sales range, in the to primarily in country due I’m by quarter which XX General the sales XX the the much fourth carries the the to price XX of goods prior offset day zucchini benefit pricing fourth from parts, well of partially X%. on in the XX.X% year. From prior quarter. underperforming reflects company-owned winter fourth continuing noodle, in Other Cost as as November. points of due offset of reflecting year the was XX other second than above growth as points expenses by our comparable December during incentive XX.X% in leverage geographies of the during wage the XX.X% quarter growth a of month of in offset to comparable higher of by expense reflects administrative sorry, select our of still compensation. roughly traffic. were food and the increased X.X% was points

Just at from end million, as the the strengthened was million. during throughout of debt $X.X a the $XX.X the beginning balance year, Long-term we million XXXX our at year. cash And quarter. $XX.X fourth did hand was we decrease end of the the on of XXXX sheet

$X.XX. like key adjusted metrics. earnings information current guidance earnings I share our Now XXXX and currently some provide XXXX diluted for of between expect our on would including full-year based per $X.XX the of financial We

between following and based on guidance $XXX revenue full-year Our million total assumptions: we million. expect $XXX is the

of restaurant X% and comparable between X%. expect sales We

release, far most in positive despite disruption sales As throughout in of our noted significant thus press weather the remain country. comparable XXXX, from restaurant

a than Mountain markets As in West. restaurants with our more are of reminder, situated concentrations half and Midwest Rocky the cold-weather upper in meaningful

experience in part many this Polar the with we in we've historically our markets early regularly the weather year, Vortex winter beginning January, of storms time experienced in poor While of Late the of XXXX. during

fact, the a home months and in snowiest to which Minneapolis XX weather all Cyclone and February February caused state. Bomb in the of was snowiest our yesterday's in restaurants Colorado, one In in coldest market years closure This ever Denver. the of continue of had

million to million. prior been We of comparable we've quarter sales although anticipate X.X%. of comparable vortex, X% first a between and quarter revenue between running polar $XXX first result, X% and growth in the sales As resulting ultimately $XXX system-wide, of

weeks have X% we seen the recent range. weather, in Importantly, comparable returned more normalized to have when sales

margin chain fees, Underlying finally management, actions a of expect of discussed, to pricing new offset XXXX. pricing the in and contribution delivery expectations orders to are system delivery recent we will progress that implementation of anticipate $X which launch supply related and labor million XX.X%. to increased testing and the our management between Turning the Dave and million initiatives third-party back continued restaurant full-year, we the XX.X% for be $X a to

XXXX $X thus from the challenge in EBITDA adjusted We which of X% the reflect million. growth in and the poor of anticipate margins to first XXXX, between XX.X% range $X.X expect to margin We EBITDA quarter These $XX perspective. between million XX% weather $XX to a expectations far for million quarter XX.X% a million. will EBITDA and and full-year adjusted first and

to pipeline. and are For the X most full-year, expect class new about we We're to including X run to system-wide X by restaurant $XX in capital $XX bolstered openings restaurants. the success million to the the recent finally expenditures new X of are company XXXX, excited XXXX And expected million.

XXXX XXXX. perspective X% growth and one that by quarter will And We please continue as offset return in to Easter an of comparable unit of from the to there diligently second and a be second to thoughtfully in negative see to impact a tremendous unit XX XXXX, reminder, sales brand the basis the to XX from point note are approximate shifts point first basis quarter new by benefit the whitespace for first the XXXX, quarter. working of final quarter

XX of that, a turn from point to new in XXXX. to us Dave fourth final resulting like perspective, for I back a will would calendar for it Additionally, year's benefit fiscal shift during remarks. now the quarter with basis XX to And

Dave Boennighausen

Noodles was a watershed Company. & XXXX for Ken. Thanks, year

sustain a our and noodle. to zucchini we In over the initiative premise Last developed average growth of We for XX% disciplined first pipeline eliminated brand the momentum off profitability. and meaningful for sales for of in with major to obstacle long-term. and time the returning year launch crested the and volumes terms of unit a we our necessary

the strategy of our saw confident extremely weather our we to we to business. in and disruption of the trends Although remain the poor due XXXX,. temporary in far underlying momentum historically thus strength

come. We the XXXX the early that for open years please for innings Lauren, and to and our Q&A. in strategy excited for continue believe to of lines we're are

Operator

Jaffray. you. Instructions] with question Our Thank Piper Nicole comes from [Operator first Miller

Your line open. is

Nicole Miller Regan

goals your I’m line anything and bonus know been Thanks. the And like selling incentives. it afternoon. to are a top you. off-premise maybe you store level know Very meal, and Thank think more, there's employees asked I curios, trend. it's how Good just impressive store suggested curious was doing, about level incremental any since if I to or while the that. sales related or make a we’ve

Paul Murphy

come do perspective what it call. we No. Sure. them, to meal, for more basically it with of any our the a as and we as through an gamification-related, off-premise make make Thanks is initiatives From such Nicole. tend

of but are not base tend From than be a profit a program, sales certainly development bit ever, they was than we to So oriented, which stronger more a and finish Nicole. people more else. those the perspective, people part is gamification anything

Noodles, down, And particular, with see at correlated particularly I same-store thing going results. the the the I've think manager what we team area and in terms we've that manager did levels. and on and years the in far the we’ve the our year. strategy in In ship turnover and honestly, really XX downside Turnover the very out numbers. direction the dramatically thus benefit same what also comfortable with sales rolling last the year that years Point been XXXX we accomplishing we the increased with most it XX in see from in the all tenure management to -- XX level, XXXX. is of ongoing XXXX in been

team excited move we the team, team. have proud forward, So, I’m the leadership the with with as excited of I’m we

place we think, there. great I in are a

Nicole Miller Regan

please It the last to just second units, to Thanks. the question. then and technology something through understand any be specific very other CapEx will of the if walk pieces And CapEx? maybe from a beneficial Can maintenance, there's Great. you bucket? and

Ken Kuick

question. Ken. the it's appreciate Nicole, I Yes,

to balance of We sheet invest in this of over the year. to business. With a quite frankly, of a performance our strong And the bit in into proper strength a that bit us past we’ve see the are CapEx flexibility, seen in XX months. gives going XXXX, an increase -- XX built spots

brand to technology investments existing new example. in rewards the then XXXX And improve include as in from also our perspective in communicate also facilitate better certainly the will technology. investments off-premise will elements platform restaurants a So that restaurants we program are significant testing and our and an

Paul Murphy

Nicole, this is doing the are work in of on-premise the ahead. through pay it, us also we ordering continue I'd online we terms both help Paul. rewards program, and our then that through of ease mention against -- just the will business app think that and but the ordering build to frankly

premise program from against investment So driving loyalty and increasing then not the the the with rewards certainly the the also, we it's think we and just perspective, only the app. of in easier that of more it think the really our more And app frequency in as use brand, usage but long-run, help driving the to going people when to as throughput with the off to helps becomes usability use.

transaction it's taking up the that We and and in, your easier frankly at do in and dine today. order to bit a mentioned also investing up, freeing come the picking then intuitive into of Noodles more coming capability it quick XX have that pick-up program take the advantage that bag online we second I So our off. make we you for when frankly, to in a XXXX use, the experience pay store, so see are online,

Nicole Miller Regan

you. Thank

Operator

Barish from Thank Jefferies. next comes question you. our And Andy with

line Your is open.

Andy Barish

guys. Hey,

basis sales cost quantifiable? wide that on for range of that XX and same-store sales is First guess, XXX improvement. how the 'XX you of tracks of initiatives one would margin that guide, some color point I you are to versus just the be range much of helpful. sort guided the on to and Any maybe aware

Dave Boennighausen

perspective, to From us opportunities really good feel side. the for Dave is cost especially labor speaking. this supply the chain that identified on we And we’ve improve, initiative and Sure. several

into reflects labor perspective, out system, actually those several the management So of of the range a a in how new the a system, ultimately cadence last From roll weeks. just Andy. labor the rolled just back-of-house lot will just

contracts. early a will that. perspective, the adding entering be over in of supply we just several are be from this phases we’ve that we Similarly into we contracts year, will So chain new

So from bit of a little timing perspective. that reflect

the point implementing. test pricing now I delivery are that to Additionally, fee we just would

So testing become The scenarios at will we recouping that national levels or percentages earliest. is range time and that by different be fee. are various very more that the year incorporates somewhat in with it test much the scope the us and have on, delivery early fact would that the on later that

Andy Barish

from are mix And way then board you’ve incremental out, it? if on Okay. featured like And the do XX things is organization obviously of think running. kind of Is roll an bps ability menu been also to you so, and where and the that plus there of drive about implying bundling maybe through sort pricing of and your that. believe items, you items signature to the menu

Paul Murphy

in our ability pricing, do is then, new effective this but terms gives surgical minimally more our us in be actually that right. a structure more Really are we modest menu, of May, what the really of pricing, but what to Paul. are menu you cadence to I of between XX that the level should, pricing. with establish than rolling pricing to done, to higher perspective, it outcome kind more and the and the with run. being of is more the And that’s going the allow think, us think often, strategic to long historically pricing get we have begin from in new we item We bps Andy, my

we’ve two do you take three specific a line bites the And that typically of pricing, we increase. during or kind price on level apple year. the before, item frankly at have you either item can one pricing more cadence, more times regular the had had With when a

is going effectively having do to to the without we more think a in effective more impact manner long-term, price on I take enable to short-term that everything So menu. today much the touch the than us and

Dave Boennighausen

from Yes, prospective perspective, testing liked mix as a with and Andy, well increased on that zucchini being increase I from a done, the we menu would perspective with we from make the highlighted really we the meal, that was from had check the add more. saw it one add a thing

that was an that of And win from flavors more launch, So also we from the a helps is a but that of incorporating nice think well I that. the us check profitable the as prospective, menu aspect signature our into May highest dishes. as are some also features volume

very test in excited the So we excited get saw of to what nationally months. with the and out couple that next in

Andy Barish

guys. Thanks, Okay.

Operator

comes Bartlett Robinson. Our with SunTrust next Jake question from

Your line is open.

Kevin Robinson

Jake. Robinson Kevin is This Hello. on for

Paul Murphy

Hi, Kevin.

Kevin Robinson

The of a to question the system existing office the in have know chain also, contracts guys I I supply you where in of is your And food. the back to for third launch you highlighted guys quarter, throughout plans cold, mentioned, labor you many of are revisit like a like wanted apologize, doing and I new have that? terms and

helpful. could you color very provide if So be on some that will and that just

Ken Kuick

we cleaning we’ve of into savings seen good entered that. cost produce we Starting a savings good some distribution. QX and 'XX, see a expect to Thanks, of is We’ve work from Yes. in a that to out Ken. contracts Great question. we From signed in new for quarter 'XX, chain the on a This Kevin. supply fourth as contracts, side, well. contract continue from

From to our are at It have process that can touched about with the RFP for cost roll continue here. fourth a very going and improved the We’ve tackling, we between some from throughout and contracts offer. savings. first important some us improve the see We feel fully quarter as through these first XXXX to the will implemented then end labor back this we the what of excited of third to We the blocking of to system. XXXX perspective, system, now quarter. quarter. continue house on we here is you labor the quarter And continues into confident and to

Dave Boennighausen

of could, days. if industry strategy bit restaurant about And I stories little touch our is to the inflation I the Obviously, want Kevin, these in on a wage one labor. biggest overall

first right expect At we labor same certainly turnover our how a developing, is over and overall approach months, flow are steps labor time, set are capital of maybe wanted within question know, the XXXX, engaged last couple we flexibility flexibility that the there tenure was we the our better would the the up, time, At Nicole's range that model. capital and third-party to us a add continue the to could benefit testing to increase out start model. totally XXXX first perspective in is I dovetails on You equipment from us earlier management hiring into model, same really kitchen, reduce expense labor gives some a back give the some that the potentially evaluate that I wins, system a benefit us foremost, as to of the help much talent training, a we’ve new certainly improve coaching, organization necessarily a package, and bit the how there. ourselves things labor beyond to equipment critical. deployed. expect in that small be taking and of things think Don't few one of also but nice overall house to our different overall some really

Kevin Robinson

time. the My Thank only question you. at

Operator

next The Strelzik from with comes Thank you. Andrew question BMO.

is Your open. line

Andrew Strelzik

menu not high iteration zucchini question, that prove go-to-market raise there that I’m to next done strategy as the surprised awareness, is work plan guess, you've maybe it you noodle the out? the Hey, I of awareness? like good the you launch behind the to And to that change My maybe raise wondering think and case, I was that be. say was, to I to to as any guess, that afternoon. the of a any then better-for-you that’s as would you hear that awareness first you little why

Dave Boennighausen

perspective I we terms of that bit an the in have think, the like we could both better actually itself. online how the biggest challenge and communicated restaurant a was then inside feel offering done we work saw, Andrew, we from

was look restaurants dish. understand it the I incorporate it of that's most zucchinis today really the think you noodle, bit could as when especially versatile in to to menu you into too capability of substitution a the challenging how comes how and at it was any noodle our that

where that’s a we that one our it the of with results bit It's So pleased test. reasons saw incorporate more with the We and very to we decided we are obvious saw. opportunity.

at repositioned and very feel we main it's that to look absolutely the good So menu, with better zucchini we noodle. that as articulate

that not PR, our we in it. on was. It a with I what a opportunity to our as obvious seeing was teams job great still think research did did guests job while that just just are We fabulous of

look ordering, So as opportunity online there's we some good board, and into it's basic as tackling, as know we menu just they we think but feature well blocking how that the offering, there. the future,

Andrew Strelzik

service differential? that stores observe type maybe that limited Okay. have And of that Any have even it, a you AUV that many windows yet, of units could the similar might do I’m about a it? call sure there but and drive-throughs provide have, color Do in aren't those you talk that just limited pickup peers a your that number between the of not. units differential number

Dave Boennighausen

in and more we'd are small. sample as ballpark as that new it's the people relatively Yes, well. look expect even that that certainly XX% in XX% of we restaurants, the handful, think, only we typically I but be that at importantly, It's And hear a neighborhood sizes we'd at the see. remodels, to

Andrew Strelzik

one in can I more there. if squeeze And

Dave Boennighausen

Absolutely.

Andrew Strelzik

or can do point within get four operations think you to the you the think level at which the at walls big changes way guys? gets sales for there about all? How the And is mix the maybe a mix online you a

Dave Boennighausen

There's go, which where think overall the actually off-premise the lot will north believe we even that. can XX% something XX% there. start in business I to and a with of we certainly potentially range

coming from As optimal line, experience and process today, sales that us. go ordering roughly they you business wait are they waiting are of the for Andrew, then a look the again. our at our into third not That’s in then people restaurant, through coming

gone are pay up shifting lift of So know it approach, to over ahead, pick that type can we online XX% just dramatically. up people you sales those and the

upside there's there. think absolutely we tremendous So

our We in way that that are designed. fortunate restaurants are the

at the I For looking perspective on those a it that promise that group time, really the the same that that second online things off-premise. of this or move one and overall be system more things continues and at just from more of towards flow need to the most kitchen, that's is focused they’re but changed to part, along doesn't key the lines, the you third-party more line more towards and recognizing is business

a So piece it's that puzzle. absolutely of

Andrew Strelzik

much. Great. Thank very you

Operator

next The with Dennis Instructions] from [Operator comes you. Geiger question UBS. Thank

open. Your line is

Dennis Geiger

the you Thanks seems platform. yet, around, better-for-your It for we think high here? but the of a platform was thinking anything that and a about anywhere can time or bit about possibilities if potential early, little about particularly a extensions like the the you and there's zucchini, think wondering better-for-you test first as some share further a as Guys, Zoodles of be if comment I mind, on extension to And I the you can if support higher how wondering In then, that, not, enthusiasm bit could kind of really as the I’m there? on bit questions. that's maybe you that lapping here. level a just -- on it's more platform? thoughts your there some in guess, this significant contribution the of level how are lot

Dave Boennighausen

an prior that going level one, one important momentum. maintain it's of to as itself, -- point July When are about zucchini to of better-for-you terms at look there's what able we the launching. you higher think running The opportunity. June zucchini Dennis, you our that we platform, we Yes, of be year. to zucchini, know I'm awareness would where positive I we actually in had, mix it's in X% it is already will out just and lap confidence was questions probably first, last recently I actually than

They're is items. the we are right yet, it's not the mac a the approach. So mix there. of platform the at No, but to build. it that just pretty certainly disciplined continues better-for-you a think Things that we cheese potential and now, healthier testing honestly, of

that bit a parts oriented some there QX, there's be as news little or QX zucchini, -- May will items six in still during of towards bit more will some gluten oriented as a And in will well well. be five feel different more that launch and we free. so it's restaurants good there's as towards that We little items

when had expanded So you already delivery so QX even pre-zucchini, a you it, really with last we lap totality. zucchini, much layer that top of the underlying opportunity until then wasn't of still got better-for-you platform momentum But year. on in

off-premise are we've one the perspective our to operational that that better. continues The is direction. better-for-you people get that levers we right probably but more certainly any in headed platform think from there's execution about and other, talked I an than feel several just

Dennis Geiger

as it guest you which benefits menu frequency about users, about then from think fourth lapsed more, one guests, mentioned return quarter. three think frequency buckets, the wanted or think off-premise, we and about of trial you of flat And the do as traffic, operations, just to etcetera, relates I How that the from made new just on in latest maybe you've touch contribution across, Great. users. one even to existing

any Thanks. Just you it's of cohorts, we and guess, And come just biggest where buckets? the then or thinking from 'XX and where those from about identify how traffic kind wondering, that? if you've I into how kind beyond those has are -- if about, how insight can think of contribution you got coming

Dave Boennighausen

Yes.

lot a Dennis. there's they’re think great So questions. I And

was big lapsed saw what we users. specifically the seeing with zucchini, So started benefit we with there

we're the used how that's From opportunity. increase where you're year. that us on the significant the those to perceptions just how we seeing to area way. we and From menu, your up, based that And a middle it that's it's to lot towards easier perspective, an look go the have believe much around not a guests frequency, we new much and love as forgotten engagement where off-premise and expect at think, guest time order of would and folks on of the digitally that’s platform folks, because coming marketing had focus what so the this during ahead, make significant like Paul us we perspective. just XXXX. back in us certainly something weigh using in a of half as to because frequently, pick year healthiness and strides his interact tremendous some more some now I user are on is well we there's to to perspective, So come certainly the with I on our pickup of last about been we a for of brand long saw

Paul Murphy

sales XXXX. an to it were weather below the a I just carrying store price. way that at Well, was were we think, over X.X% And interesting before bit we look or right at on moment, a comp all going into little certainly hit, at X% in

some even brands if are other which rate in of run felt some it the the as you markets, mix growing major had imply other than and frankly apply that that much of So the couple as mentioned then thing, out that still seen, begun transactions taking spread transactions brand geographically. to return price. out that last Obviously, more the we positive our frankly today, a bit and and below Bomb think, in his would a maybe brands out QX. were just more the weather hasn't the overall the has X.X% from turn of in herein remarks, we've weather weeks, that Cyclone normalize as we're I in kind yesterday to Ken like there, as But sales

nice they’re that think ledger that it to continue I transactions and be year. that we'd expect of where the for throughout can you to the gives side the -- on continue and a feel hold So to positive the

Dennis Geiger

guys. Thanks, Great.

Operator

back for showing Thank remarks. any closing the at questions further I turn like And call Boennighausen over now not any time. you. to this I’m would to Dave

Dave Boennighausen

Lauren. Thanks,

time look and Company brand. that lot of appreciate out differentiation be how that & culinary food Just Noodles the on the able of a And operational at with travels off-premise, perspective, brand unique and and position continued just for people strategies achievements strength. of win a and our as to Look XXXX kind our year focused were the lot afternoon. were fabulous and of it that born a really uniqueness was you Clearly execution. a this results everybody's on to of from long focus

feeling very XXXX about are where about we from and in good We underlying momentum more even go here. the excited

again thanks evening. and much have wonderful So very a

Operator

and This a Everyone today’s disconnect. thank today’s program participating does day. in have conclude and for wonderful Ladies conference. you gentlemen, you all may

Noodles & Company (NDLS) 14 Mar 192018 Q4 Earnings call transcript