Avoid This Hot IPO

Since its IPO last Friday shares of restaurant chain Noodles & Co. (NASDAQ: NDLS  ) have more than doubled. While insiders are celebrating, others are wondering if this is the next Chipotle (NYSE: CMG  ) or just a lot of hype. Motley Fool analyst Jason Moser digs into the numbers and examines how the two restaurants compare. Chipotle's profit margins are much more robust. That plus the fact that Noodles & Co. is brand-new to the public markets make this a stock investors should avoid for the time being.

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  • Report this Comment On July 02, 2013, at 12:20 PM, Awebb30 wrote:

    I don't get it. Lower margins than a peer and being new make this an unworthy investment? Seems thin to me.

    Margins can improve, store growth projections are robust and the management team is experienced and talented. And their Bangkok Curry is awesome.

    Buy.

  • Report this Comment On July 02, 2013, at 6:22 PM, mseeley25 wrote:

    It's hilarious how bitter Motley Fool analysts are about this stock. Just because you didn't do your research and missed the IPO doesn't mean it isn't a buy.. See you at 100 losers!

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