Jefferies analyst Andy Barish downgraded Noodles & Co. (NASDAQ:NDLS) to a Hold rating with a price target of $10.00, as the company calls a top in the restaurant cycle.

Following an extensive study on restaurant supply and the concurrent impact on sss and labor, the analyst upholds that the industry has, at the very least, 18 months of challenges ahead of it, in terms of softer sss and higher labor costs.

Barish notes, “We are broadly lowering estimates (on higher wages) for ’17 and some ratings and would be more selective towards the restaurant stocks at this point in cycle.”

According to TipRanks, Andy Barish is ranked #445 of 4,079 analysts and maintains a success rate of 61% with an average return of 7.4%.