Update: Noodles (NASDAQ:NDLS) Stock Gained 86% In The Last Five Years
The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. But Noodles & Company (NASDAQ:NDLS) has fallen short of that second goal, with a share price rise of 86% over five years, which is below the market return. Some buyers are laughing, though, with an increase of 81% in the last year.
View our latest analysis for Noodles
Because Noodles made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last 5 years Noodles saw its revenue shrink by 3.1% per year. The falling revenue is arguably somewhat reflected in the lacklustre return of 13% per year over that time. Arguably that's not bad given the soft revenue and loss-making position. We'd keep an eye on changes in the trend - there may be an opportunity if the company returns to growth.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at Noodles' financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that Noodles shareholders have received a total shareholder return of 81% over one year. That's better than the annualised return of 13% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Noodles better, we need to consider many other factors. For instance, we've identified 1 warning sign for Noodles that you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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