Shares of Noodles & Co. declined after the quick-service restaurant issued soft revenue guidance for the current year and said it will slow its pace of new store openings this year.
The stock fell 13% to $2.13 in morning trading. Shares are down 64% from a year ago.
The company plans to open 10 to 12 new company-owned stores this year, down from 18 last year, Chief Executive Andrew Madsen told analysts on a conference call. He said the company will focus on locations where the brand already has awareness and where rent and labor costs are reasonable.
Noodles & Co., which operates in Michigan, California, Colorado and elsewhere, also said it is targeting fiscal 2024 revenue of $510 million to $525 million. Analysts surveyed by FactSet are expecting $527 million.
Madsen, who is ditching his interim title after serving as interim CEO since November, also laid out his plans to reinvigorate the chain. He said the company is workshopping new menu items and working on growing its catering business, among other changes. He also acknowledged that the company went too far with its price increases last year.