Since its IPO last Friday shares of restaurant chain Noodles & Co. (NDLS -2.17%) have more than doubled. While insiders are celebrating, others are wondering if this is the next Chipotle (CMG 0.14%) 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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Avoid This Hot IPO
Noodles & Co. is the latest hot IPO. Here's why you should stay away.
About the Author
Full-time host of the Motley Fool Money radio show, MarketFoolery podcast, and other things. Part-time connoisseur of movies, basketball & fine bourbon.
Chris Hill and Jason Moser own shares of Chipotle Mexican Grill. The Motley Fool recommends and owns shares of Chipotle Mexican Grill. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
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