Core Insights - Noodles & Company is closing underperforming units and plans to accelerate closures, with 20 restaurants closed last year and an expected 31 to 34 closures in 2025 [3][4] - The company has faced activist pressure, conceding a board seat to an activist investor in 2024, and is exploring strategic alternatives including a potential sale [3][6] - Galloway Capital Partners, which holds a 6% stake, recommends selling 200 company-owned locations to generate approximately $60 million to reduce high-cost debt [5][6] Company Performance - Noodles & Company has seen an increase in sales and profits at nearby locations following the closure of underperforming restaurants, expecting to retain about 30% of sales from closed stores [4] - Despite outperforming some competitors in same-store sales growth, the company is experiencing growing net losses, revenue declines, and negative operating margins [6] - As of September 30, the company had 349 company-owned units and only 86 franchised units, indicating a shift towards an asset-light model [4][6]

Shares of Noodles & Company (NDLS) were jolted higher when Galloway Capital Partners disclosed a stake in the restaurant chain in a filing with the U.S. Securities and Exchange Commission. Galloway now owns more than 2.8M shares, representing a 6.01% stake. ...

Accessibility StatementSkip Navigation Fan-favorite Holiday Crispy returns with a twist from SNICKERS® BROOMFIELD, Colo., Dec. 1, 2025 /PRNewswire/ --Â Noodles & Company (NASDAQ: NDLS), the fast- casual favorite known for craveable, globally inspired noodle dishes, is inviting guests to take a break this busy holiday season and treat themselves to the chocolatey, smooth crunch of the Holiday Crispy made with SNICKERS®. Available for a limited time this December while supplies last for just $3.50, this seaso ...

Getting smaller isn't always a bad thing. Even really successful brands need to close stores in some situations due to population shifts, rent increases, or other operating changes. That's something Amazon's account firm, Archamedia Accountants, stressed to IFAMagazine. “It is important to recognise that despite the many store closures in recent times, retail is not dying, but evolving. Therefore, it is essential that businesses constantly adapt and react to the market. Store closures themselves don’t a ...

Core Insights - Noodles & Company reported third-quarter 2025 results that exceeded Wall Street expectations for both revenue and profitability, leading to a 6.7% increase in share price [1] - Total revenue remained flat year-on-year at $122.1 million, but this surpassed analysts' forecasts, while same-store sales increased by 4%, indicating a turnaround from the previous year's decline [1] - The company achieved an adjusted EBITDA of $6.5 million, which was over 12% higher than consensus estimates, and slightly raised its full-year revenue forecast despite a negative operating margin and an adjusted loss of $0.10 per share [1] Market Reaction - Noodles & Company's shares have shown extreme volatility, with 83 moves greater than 5% in the past year, suggesting that the market views the recent news as significant but not fundamentally altering its perception of the business [3] - The stock had previously gained 4.3% due to a holiday marketing campaign aimed at promoting its meals as an alternative to pizza, which was based on a survey indicating 70% of respondents preferred noodles over pizza during the holidays [4] Stock Performance - Since the beginning of the year, Noodles & Company shares have increased by 28.2%, but at $0.75 per share, they are still trading 55.4% below their 52-week high of $1.69 from February 2025 [5] - An investment of $1,000 in Noodles shares five years ago would now be worth $113.46, highlighting the long-term challenges faced by the company [5]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 decreased by 0.5% year-over-year to $122.1 million [15] - Comparable sales grew by 4% in Q3, with an increase of 8% in October [5][16] - Average check increased by 4.6%, including a 2% effective pricing during the quarter [16] - Net loss for Q3 was $9.2 million, or a loss of $0.20 per diluted share, compared to a net loss of $6.8 million, or a loss of $0.15 per diluted share last year [18] - Adjusted EBITDA improved by $1.6 million, or approximately 33%, to $6.5 million [11][18] Business Line Data and Key Metrics Changes - Digital sales channel saw a meaningful year-over-year improvement, driven largely by third-party delivery, which increased by 12% [6] - Restaurant contribution margins improved by 40 basis points to 13.2% from 12.8% in Q3 2024 [16][18] - COGS as a percentage of sales was 25.7%, a 20 basis point increase from last year [17] Market Data and Key Metrics Changes - Company comp traffic decreased slightly by 0.6% in Q3, but was positive in the second half of the quarter [16] - Year-over-year traffic was positive over 1.5% quarter-to-date, extending a positive traffic trend that began midway through Q3 [9] Company Strategy and Development Direction - The company is focusing on closing underperforming restaurants to improve overall sales leverage and enhance profitability [10][20] - The introduction of the Delicious Duos platform is aimed at providing value while maintaining brand equity and profitability [7] - The company is executing a comprehensive cost-savings plan expected to deliver over $5 million in savings across its P&L in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path ahead, citing strong sales trends and the success of recent initiatives [4][6] - The company anticipates continued strength in sales and margins, particularly as it laps over a period of heavy promotions and discounts from the previous year [9][21] - Management is optimistic about the impact of restaurant closures on future profitability, expecting a positive contribution of over $2 million in 2026 [20][21] Other Important Information - The board of directors has initiated a review of strategic alternatives to explore ways to maximize shareholder value [15] - The company plans to introduce new menu items, including a collaboration with a popular candy bar, in December [13] Q&A Session Summary Question: Can you discuss the success of the Delicious Duos and its impact on value perception? - Management noted that Delicious Duos filled a value void and is mixing around 4-5% across restaurants, with positive value scores from guests [23][24] Question: How does the company account for organic traffic versus sales transfer from closed stores? - Management indicated that closures have contributed about a 1% lift in sales, with positive traffic outside of sales transfer [25] Question: What are the learnings from the Ramen limited-time offer (LTO)? - Management is encouraged by the trial and repeat business from the Ramen LTO and sees potential for it to be a permanent menu item [26][27]

Financial Performance - Total revenue for Q3 2025 was $122.1 million, a decrease of 0.5% from $122.8 million in Q3 2024[5] - Net loss for Q3 2025 was $9.2 million, or $0.20 loss per diluted share, compared to a net loss of $6.8 million, or $0.15 loss per diluted share in Q3 2024[5] - Adjusted EBITDA increased by 32.7% to $6.5 million in Q3 2025, up from $4.9 million in Q3 2024[5] - Total revenue for the fiscal quarter ended September 30, 2025, was $122.086 million, a slight decrease of 0.5% compared to $122.751 million for the same period in 2024[22] - Net loss for the quarter was $9.151 million, compared to a net loss of $6.755 million in the same quarter of the previous year, representing an increase in loss of 35.5%[22] - Adjusted EBITDA for the quarter was $6.498 million, an increase from $4.896 million in the same quarter of 2024, indicating a growth of 32.7%[26] - The company reported a total loss from operations of $(27,484) million for the three fiscal quarters ended September 30, 2025, compared to $(20,414) million in the same period of 2024, highlighting ongoing challenges[36] Operational Metrics - Comparable sales increased by 4% in Q3 2025, outperforming the fast casual benchmark, with October showing an 8% increase[3] - Restaurant contribution margin improved to 13.2% in Q3 2025, compared to 12.8% in Q3 2024[5] - Company-owned average unit volume for the quarter was $1,341, a decrease from $1,353 in the previous quarter, reflecting a decline of 0.9%[24] - Franchise average unit volume was $1,311, down from $1,327 in the previous quarter, showing a decrease of 1.2%[24] - Company-owned comparable restaurant sales increased by 4.0% compared to a 1.5% increase in the same quarter of the previous year[24] - Restaurant contribution for the fiscal quarter ended September 30, 2025, was $15,737 million, up from $15,408 million in the prior year, reflecting a year-over-year increase[36] - The restaurant contribution margin for the three fiscal quarters ended September 30, 2025, was 12.1%, down from 13.8% in the previous year, indicating a decline in profitability[36] - Management emphasizes that restaurant contribution and margin are important metrics for evaluating restaurant-level productivity and performance, despite being non-GAAP measures[37] Future Guidance and Strategic Plans - Total revenue guidance for fiscal year 2025 is projected to be between $492 million and $495 million, with comparable restaurant sales growth expected between 3.6% and 4.2%[6] - The company plans to close 31 to 34 company-owned restaurants and 7 to 8 franchise restaurants[13] - A strategic review is underway to explore alternatives for maximizing stockholder value, including refinancing and potential refranchising[7] Financial Position - The company has $4.7 million in cash and cash equivalents and $109.8 million in outstanding debt as of September 30, 2025[4] - Total current assets as of September 30, 2025, were $23.819 million, up from $20.192 million as of December 31, 2024, representing an increase of 12.9%[24] - Total liabilities decreased to $319.471 million from $330.227 million year-over-year, a reduction of 3.3%[24] - General and administrative expenses are expected to be between $48 million and $49 million for the fiscal year 2025[6] - General and administrative expenses for the three fiscal quarters ended September 30, 2025, were $37,486 million, down from $39,503 million in the prior year, reflecting cost management efforts[36] Costs and Expenses - Loss from operations for the fiscal quarter ended September 30, 2025, was $(6,319) million, compared to $(4,800) million for the same period in 2024, indicating a deterioration in operational performance[36] - Total depreciation and amortization expenses for the three fiscal quarters ended September 30, 2025, were $20,833 million, slightly down from $21,985 million in the previous year[36] - Restaurant impairments, closure costs, and asset disposals totaled $5,681 million for the quarter ended September 30, 2025, compared to $2,202 million in the same quarter of 2024, showing increased costs related to restaurant operations[36] - Franchising royalties and fees for the three fiscal quarters ended September 30, 2025, were $7,627 million, consistent with $7,600 million in the previous year, indicating stable franchise performance[36]

Core Insights - Noodles & Company reported a 4% increase in comparable restaurant sales for Q3 2025, outperforming the fast casual benchmark, with October sales accelerating to an 8% increase [3][6] - The company experienced a net loss of $9.2 million in Q3 2025, compared to a net loss of $6.8 million in Q3 2024, largely due to $5.3 million in pre-tax restaurant impairments [6][24] - Adjusted EBITDA rose by 32.7% to $6.5 million in Q3 2025, up from $4.9 million in the same quarter of the previous year [6][26] Financial Performance - Total revenue for Q3 2025 decreased by 0.5% to $122.1 million from $122.8 million in Q3 2024 [6][21] - Restaurant contribution margin improved to 13.2% in Q3 2025 from 12.8% in Q3 2024, indicating better restaurant-level productivity [6][36] - Operating margin was reported at (5.2)% for Q3 2025, compared to (3.9)% in Q3 2024 [6][21] Liquidity and Debt - As of September 30, 2025, the company had cash and cash equivalents of $4.7 million and outstanding debt of $109.8 million [4] - The available amount for future borrowings under its revolving credit facility was $12.2 million [4] Business Outlook - The company revised its guidance for fiscal year 2025, expecting total revenue between $492 million and $495 million, with comparable restaurant sales growth projected at 3.6% to 4.2% [7] - The company plans to close 31 to 34 company-owned restaurants and 7 to 8 franchise restaurants, while opening two new company-owned locations [7] Strategic Review - On September 3, 2025, the Board of Directors initiated a review of strategic alternatives to maximize stockholder value, which may include refinancing, refranchising, or selling parts of the business [8]