Noodles & Company (NASDAQ:NDLS) Q2 2020 Earnings Conference Call August 6, 2020 4:30 PM ET Company Participants Dave Boennighausen – Chief Executive Officer Ken Kuick – Chief Financial Officer Conference Call Participants Jake Bartlett – Truist Nicole Miller – Piper Sandler Andrew Strelzik – BMO Andy Barish – Jefferies Todd Brooks – CL King & Associates Operator Good afternoon, and welcome to today’s Noodles & Company Second Quarter 2020 Earnings Conference Call. [Operator Instructions] After the presenters ...

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 June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 193 ...

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 March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 19 ...

Noodles & Company (NASDAQ:NDLS) Q1 2020 Earnings Conference Call May 6, 2020 4:30 PM ET Company Participants Dave Boennighausen - Chief Executive Officer Ken Kuick - Chief Financial Officer Conference Call Participants Andy Barish - Jefferies Daniel Salmon - BMO Jake Bartlett - Suntrust Operator Good afternoon and welcome to today’s Noodles & Company First Quarter 2020 Earnings Conference Call. All participants are now in a listen-only mode. After the presenters’ remarks, there will be a question-and-answer ...

Financial Data and Key Metrics Changes - In 2019, total revenue increased by 1% to $462.4 million from $457.8 million in 2018, driven by system-wide comparable sales growth of 2.8% [20] - Adjusted EBITDA increased by 15.2% to $38.4 million, with a significant increase of over 30% in the fourth quarter [20][8] - Net income for 2019 was $1.6 million or $0.04 per diluted share, compared to a net loss of $8.4 million or $0.20 per diluted share in 2018 [21] - Adjusted net income for 2019 was $8.1 million or $0.18 per diluted share, compared to $1 million or $0.02 per diluted share in 2018 [21] Business Line Data and Key Metrics Changes - Comparable sales growth for company-owned restaurants was 2.9%, while franchise locations saw a 2.5% increase [21] - Digital sales increased by 34% year-over-year, accounting for 25% of total sales in Q4 2019 [9] - Off-premise sales increased to 58% of total sales, with digital sales representing 28% year-to-date in 2020 [9] Market Data and Key Metrics Changes - Year-to-date comparable sales growth in 2020 reached 5.8%, significantly outperforming the industry [8] - The company anticipates 10 to 15 new restaurant openings in 2020, with a target of 5% unit growth system-wide beginning in 2021 [15] Company Strategy and Development Direction - The company is focusing on enhancing guest engagement through digital ordering and a new rewards program, which has shown positive sales results [7][10] - Culinary innovation remains a priority, with plans for approximately three menu launches annually, including plant-based alternatives [12] - The company aims to strengthen its operational foundation to support unit growth, targeting a disciplined approach to expansion [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, citing seven consecutive quarters of positive comparable sales growth and strong margin expansion [7] - The company is optimistic about the economic model's improvement and expects continued growth in adjusted EBITDA and net income [20][26] - Management highlighted the importance of operational excellence and people development as critical to success in the restaurant industry [14] Other Important Information - The company amended its credit facility, increasing borrowing capacity to $100 million to support new restaurant development [25] - The company expects capital expenditures to range between $20 million and $30 million for 2020 [27] Q&A Session Summary Question: What happened with same-store sales in Q4? - Management noted that sales momentum was strong but fell slightly short of expectations due to a delayed marketing push related to the rewards program [31] Question: How will unit openings be paced in 2020? - The company indicated that openings will be backend loaded, with most new restaurants expected in the fourth quarter [40] Question: What are the expectations for restaurant margin guidance? - Management discussed various drivers for margin expansion, including negotiating delivery fees and implementing premium pricing [34][37] Question: What is the outlook for commodity inflation in 2020? - The company expects commodity inflation to remain around 1% for 2020, benefiting from contracted pricing for 75% of its spend [59] Question: How will the pick-up experience evolve in 2020? - The company plans to enhance the pick-up experience by removing friction points and personalizing the process for guests [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 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: 001-35987 NOODLES & COMPANY (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) ( ...

Noodles & Company (NASDAQ:NDLS) Q3 2019 Earnings Conference Call November 7, 2019 4:30 PM ET Company Participants Ken Kuick - Chief Financial Officer Dave Boennighausen - Chief Executive Officer Conference Call Participants Spencer Hanus - Citi Jake Bartlett - Suntrust Andy Barish - Jefferies Andrew Strelzik - BMO Capital Markets Operator Good afternoon and welcome to today's Noodles & Company’s Third Quarter 2019 Earnings Conference Call. All participants are now in a listen-only mode. After the presenters ...

Table of Contents Title of each class Trading Symbol Name of each exchange on which registered Class A Common Stock, $0.01 par value per share NDLS Nasdaq Global Select Market Large accelerated filer ☐ Accelerated Filer ☒ Non-accelerated filer ☐ Smaller reporting company ☒ Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ ☒ QUARTE ...

Financial Data and Key Metrics Changes - For Q2 2019, the company reported net income of $400,000, or $0.01 per diluted share, compared to a net loss of $5.9 million, or $0.14 per diluted share in Q2 2018 [21] - Revenue for the quarter was $120.2 million, a 2.4% increase year-over-year, driven by strong comparable sales growth [21][22] - Adjusted EBITDA increased by 20.5% to $10.9 million, while adjusted earnings per diluted share rose to $0.05 from $0.01 in the previous year [26] Business Line Data and Key Metrics Changes - Company-wide comparable sales grew by 4.8%, with a two-year growth of 9.8%, marking the best performance in six years [8][10] - Off-premise sales represented over 56% of total sales, with digital ordering growing by 47% year-over-year [13] - Restaurant-level margin improved by 160 basis points to 17.1%, the highest since Q2 2015, driven by higher average unit volume and lower marketing spend [23] Market Data and Key Metrics Changes - System-wide comparable sales increased by 4.6%, with a 4.8% increase at company-owned restaurants and a 3.7% increase at franchise locations [21] - Delivery sales grew to 6.6% of total sales during Q2, indicating a growing trend in off-premise dining [15] - The company anticipates a continued focus on digital sales and delivery, with plans to test third-party delivery directly from its website and app [15] Company Strategy and Development Direction - The company aims for disciplined unit growth, targeting 5% unit growth system-wide beginning in 2021, with potential acceleration to 7% in subsequent years [16] - The introduction of new menu items, such as cauliflower-infused rigatoni, is part of the strategy to meet consumer demand for healthier options [12] - The company is also focusing on enhancing its digital platform and rewards program to improve customer engagement and streamline the ordering process [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to sustain growth, citing strong performance in Q2 and the potential for new product launches [28] - The management team highlighted the importance of culinary innovation and operational efficiency in driving future success [10][11] - There is optimism regarding the company's ability to expand its unit count and improve the economic model for franchising [18][19] Other Important Information - The company plans to open six new restaurants in the latter half of 2019, including five company-owned and one franchise location [16] - Long-term debt decreased to $46.1 million, reflecting strong operating results, and cash on hand was $3.3 million [27] - The anticipated effective tax rate for the full year is between 1% and 4% [27] Q&A Session Summary Question: Why wasn't guidance raised despite stronger-than-expected results? - Management indicated that the previous guidance reflected confidence in the balance of the year and that the second quarter performed as expected [32] Question: How did the composition of comparable sales change with the launch of Zoodles? - Management noted that the check size remained strong, and the new menu board contributed positively to sales [35] Question: What is the expected growth strategy regarding company-led versus franchise-led units? - Initially, growth is expected to be more company-driven as the new kitchen design is tested, with franchising becoming a more significant part of the strategy over time [37][38] Question: What testing has been done around the cauliflower rigatoni? - Initial tests showed strong acceptance and repurchase intent, with a pricing strategy that is competitive but not as premium as Zoodles [42] Question: What are the plans for marketing and pricing strategies moving forward? - Marketing expenses are expected to remain around 1% of sales, with a focus on targeted promotions related to the new rewards program [47][48] Question: What insights have been gained from customer research regarding the rewards program? - Customization and relevance of offers were highlighted as key areas for improvement, with plans to enhance targeting and engagement [51][52]