Image source: Noodles & Company.

What: Shares of Noodles & Company (NASDAQ:NDLS) were getting passed over by investors last month, falling 16% according to data from S&P Global Market Intelligence. The company reported a first-quarter loss and later in May said it experienced a credit card data breach.

So what: The fast-casual chain's struggles continued as it posted an adjusted first-quarter loss of $0.06 per share, down from a profit of $0.03 a share from a year ago. That result beat estimates by a penny, but Noodles' performance continues to be challenged. Comparable sales were essentially flat, falling 0.1%, and overall revenue grew just 7.8% to $114 million, its slowest rate since its 2013 IPO, missing estimates at $115 million.

CEO Kevin Reddy said he was "pleased with the progress" the company made as it improved underlying traffic trends, even though traffic continued to decline. While Noodles' shares traded flat the day after the report on May 4, the stock declined gradually over the remainder of the month.

Later, it reported a data breach, saying that card users' information may have been compromised.

Now what: Noodles' guidance was similarly uninspiring. The company sees 2016 earnings per share of $0.04-$0.08, down from $0.13 a year ago. Management also expects comparable sales growth in the low single digits and plans to open 50 new restaurants this year. 

Noodles & Company earnings have tumbled over the last year as revenue growth has slowed. With a weak earnings projection and flat comparable sales growth, there seems little reason to expect a comeback anytime soon.

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