Investing.com -- Shares in Noodles & C (O:NDLS) fell sharply in after-hours trading, as the Denver-based casual dining chain offered a downbeat forward guidance even after increasing revenues by more than 12% last year.
Noodles & Company swung to a loss in the fourth quarter, reporting a GAAP net loss of $4.3 million or 0.15 per share, considerably below earnings of $3.53 million or 0.11 per share during the same period a year earlier. The chain managed to increase revenues by 7.1% to $117.1, despite a 0.9% in comparable sales among company-owned restaurants and a 2.1% dip in franchise-owned restaurants.
Overall, the company finished with full-year revenue of $455 million and adjusted earnings per share of 0.13. Noodles & Company expected adjusted per share earnings between 0.13 and 0.15.
"While earnings remained under pressure during the fourth quarter, I am pleased with the progress we made on implementing several initiatives. During the quarter we successfully introduced our Made. Different. brand positioning, which we activated through the launch of a Kids Meal nationwide and an integrated media campaign in select markets," Noodles & Company CEO Kevin Reddy said in a statement. "This new positioning highlights our differentiated, made-to-order fast casual dining experience as well as our continued commitment to food quality and transparency."
Noodles blamed declining margins, increased wages and higher marketing costs for the disappointing earnings.
Moving forward, Noodles & Company expects full-year adjusted earnings per share in 2016 between 0.04 and 0.08. The guidance is considerably below analysts' forecasts of 0.13.
"We believe the fundamental business is strengthening and that we have improved the foundation from which we expect to build sales and profits over the long term," Reddy added.
Shares in Noodles & Company fell 0.43 or 3.52% to 11.80 in after-hours.