Core Insights - Noodles & Co. reported revenue of $123.79 million for the quarter ended March 2025, reflecting a year-over-year increase of 2% [1] - The company's EPS was -$0.20, compared to -$0.13 a year ago, indicating a decline in earnings [1] - The reported revenue exceeded the Zacks Consensus Estimate of $123.63 million by 0.13%, while the EPS fell short of the consensus estimate of -$0.10 by 100% [1] Financial Performance Metrics - Company-owned comparable restaurant sales increased by 4.7%, surpassing the two-analyst average estimate of 3.8% [4] - Total restaurants system-wide reached 460, slightly above the two-analyst average estimate of 459 [4] - System-wide comparable restaurant sales were up 4.4%, compared to the 3.8% average estimate based on two analysts [4] - Franchise comparable restaurant sales were reported at 2.9%, below the two-analyst average estimate of 3.8% [4] - Revenue from franchising royalties and fees was $2.47 million, below the two-analyst average estimate of $2.77 million, but showed a year-over-year increase of 3.2% [4] - Restaurant revenue was $121.33 million, slightly above the $120.86 million average estimate based on two analysts, representing a 2% year-over-year change [4] Stock Performance - Shares of Noodles & Co. have returned +10.2% over the past month, compared to the Zacks S&P 500 composite's +10.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Noodles & Company is conducting its Q1 2025 earnings conference call, indicating a focus on financial performance and future projections [1][3]. Financial Performance - The call will include discussions on non-GAAP measures, which the company believes are useful for evaluating operating performance [5]. Regulatory Matters - The company will make forward-looking statements regarding future events and financial performance, which are subject to risks and uncertainties [4].

Core Viewpoint - Noodles & Co. reported a quarterly loss of $0.20 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, marking a significant earnings surprise of -100% [1][2] Financial Performance - The company posted revenues of $123.79 million for the quarter ended March 2025, slightly surpassing the Zacks Consensus Estimate by 0.13% and showing an increase from $121.4 million year-over-year [2] - Over the last four quarters, Noodles & Co. has only surpassed consensus EPS estimates once [2] Stock Performance - Noodles & Co. shares have increased approximately 76.2% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $128.6 million, and for the current fiscal year, it is -$0.32 on revenues of $506.27 million [7] - The trend of estimate revisions for Noodles & Co. has been unfavorable ahead of the earnings release [6] Industry Context - The Retail - Restaurants industry, to which Noodles & Co. belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8]

Part I - Financial Information [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Q1 2025 revenue grew 2.0% to $123.8 million, but rising costs widened the net loss to $9.1 million and increased the stockholders' deficit [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased slightly to $319.5 million while liabilities rose, increasing the stockholders' deficit to $13.9 million as of April 1, 2025 **Condensed Consolidated Balance Sheet Highlights (in thousands)** | Account | April 1, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$319,450** | **$324,648** | | Total current assets | $20,508 | $20,192 | | Property and equipment, net | $137,579 | $137,237 | | Operating lease assets, net | $152,022 | $157,821 | | **Total Liabilities** | **$333,355** | **$330,227** | | Total current liabilities | $70,114 | $65,717 | | Long-term debt, net | $100,623 | $100,742 | | Long-term operating lease liabilities, net | $151,437 | $156,723 | | **Total Stockholders' Deficit** | **$(13,905)** | **$(5,579)** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Despite a 2.0% revenue increase to $123.8 million, higher costs drove the Q1 2025 net loss to $9.1 million, up from $6.1 million year-over-year **Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data)** | Metric | Q1 2025 (ended Apr 1) | Q1 2024 (ended Apr 2) | | :--- | :--- | :--- | | Total Revenue | $123,794 | $121,395 | | Total Costs and Expenses | $130,181 | $125,491 | | Loss from Operations | $(6,387) | $(4,096) | | Net Loss | $(9,057) | $(6,140) | | Diluted Loss Per Share | $(0.20) | $(0.14) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) The stockholders' deficit grew to $13.9 million, driven primarily by the quarter's $9.1 million net loss which increased the accumulated deficit - The net loss of **$9.1 million** for the quarter was the main contributor to the increase in the accumulated deficit to **$193.5 million** and the total stockholders' deficit to **$13.9 million**[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to $4.0 million in Q1 2025, while significantly lower capital expenditures reduced cash used in investing **Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands)** | Cash Flow Activity | Q1 2025 (ended Apr 1) | Q1 2024 (ended Apr 2) | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,033 | $7,005 | | Net cash used in investing activities | $(2,918) | $(8,647) | | Net cash used in financing activities | $(868) | $(37) | | **Net increase (decrease) in cash** | **$247** | **$(1,679)** | | **Cash and cash equivalents, end of period** | **$1,396** | **$1,334** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail operations, accounting policies, outstanding debt, and revenue recognition for the company's single reportable segment - As of April 1, 2025, the company had **460 restaurants** system-wide, consisting of **369 company-owned** and **91 franchise** locations, and operates as a single reportable segment[25](index=25&type=chunk)[64](index=64&type=chunk) - The company had **$102.7 million** of indebtedness outstanding under its A&R Credit Agreement as of April 1, 2025, with interest rates on its revolver ranging from **8.15% to 10.25%** during the quarter[36](index=36&type=chunk)[37](index=37&type=chunk) - The company defers revenue from its Noodles Rewards loyalty program and recognizes it when points are redeemed; the deferred revenue liability for the program was **$1.0 million** as of April 1, 2025[62](index=62&type=chunk) - During Q1 2025, the company closed three restaurants and recognized a **$0.7 million gain** from a lease termination settlement on one closed restaurant[48](index=48&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 4.4% rise in comparable sales, menu upgrades, cost pressures, and a decline in Adjusted EBITDA to $2.4 million **Q1 2025 Key Performance Indicators** | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | System-wide comparable restaurant sales | 4.4% | N/A | | Company-owned comparable restaurant sales | 4.7% | (5.7)% | | Franchise-owned comparable restaurant sales | 2.9% | N/A | | Company-owned Average Unit Volume (AUV) | $1,314k | $1,253k | - The company implemented a comprehensive menu upgrade in March 2025, which is expected to increase food costs but is supported by increased marketing and a new brand strategy[72](index=72&type=chunk)[73](index=73&type=chunk) **Reconciliation of Net Loss to Adjusted EBITDA (in thousands)** | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(9,057) | $(6,140) | | EBITDA | $703 | $3,274 | | **Adjusted EBITDA** | **$2,404** | **$5,499** | - The company estimates total capital expenditures for fiscal year 2025 to be between **$11.0 million and $13.0 million**, primarily for reinvestment in existing restaurants, technology, and one additional new restaurant[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate fluctuations on its variable-rate debt, commodity prices, and general inflation - The company is exposed to interest rate risk on its **$102.7 million** of variable-rate debt; a **1.0% change** in the interest rate would impact annualized pre-tax interest expense by approximately **$1.0 million**[129](index=129&type=chunk) - The company faces commodity price risk for food products, which it attempts to mitigate through purchasing contracts rather than financial hedging instruments; significant price increases may require menu price adjustments[130](index=130&type=chunk) - Inflationary factors affecting operations include food, labor, and energy costs, as well as construction materials; the company anticipates that inflation may continue to affect results in the near future[131](index=131&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of April 1, 2025, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of April 1, 2025[133](index=133&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the most recent fiscal quarter[134](index=134&type=chunk) Part II - Other Information [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings - As of the filing date, the company is **not involved in any material legal proceedings**[135](index=135&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes were made to risk factors disclosed in the company's 2024 Annual Report on Form 10-K - **No material changes** to the company's risk factors have occurred since the last Annual Report on Form 10-K[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[137](index=137&type=chunk) [Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[138](index=138&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[139](index=139&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[140](index=140&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) The report includes required officer certifications and Inline XBRL documents as exhibits - Exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 32.1) and various Inline XBRL files[141](index=141&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased by 2% year-over-year to $123.8 million [17] - System-wide comparable restaurant sales increased by 4.4%, with company-owned restaurants up 4.7% and franchise restaurants up 2.9% [17] - Company average unit volumes were $1.31 million in Q1 [17] - Net loss for Q1 was $9.1 million, or a loss of $0.20 per diluted share, compared to a net loss of $6.1 million, or a loss of $0.14 per diluted share in the previous year [19] - Adjusted EBITDA for Q1 was $2.4 million, down from $5.5 million in Q1 2024 [20] Business Line Data and Key Metrics Changes - Same-store sales increased by 4.7% in company-owned restaurants and 4.4% system-wide, driven by new menu items and marketing efforts [5][17] - Traffic increased by 1.8% and average check increased by 2.9%, including a 1.3% effective pricing increase [17] - Restaurant-level contribution margin decreased to 10.3% from 13.1% in Q1 2024 [19] Market Data and Key Metrics Changes - The Easter holiday shift positively impacted Q1 comparable sales by approximately 50 basis points [17] - The company experienced a significant increase in brand awareness and digital engagement following the new menu launch [14] Company Strategy and Development Direction - The company is focused on operational excellence and has implemented a comprehensive training program for staff to support the new menu rollout [6][7] - A major menu transformation was executed, with nearly two-thirds of the menu being new or improved, aimed at increasing brand relevance and customer engagement [10][12] - The marketing strategy has shifted to include broader reach awareness channels, such as connected TV and digital audio, to attract a wider audience [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum and the effectiveness of the new menu and marketing strategies, despite a challenging macroeconomic environment [5][16] - The company anticipates continued sales growth and improvements in cost management throughout the year [22] Other Important Information - The company plans to open two new company-owned restaurants in 2025 and close 13 to 17 company-owned and four franchise restaurants [24] - Capital expenditures for 2025 are estimated to be between $11 million and $13 million, significantly lower than previous years [24] Q&A Session Summary Question: Marketing commitment and loyalty customer response to the new menu - Management indicated that marketing investment has been doubled for the new menu and is expected to continue at a high level [28] - Loyalty members have shown a strong response, with double-digit transaction growth noted [32] Question: Traffic trends since the menu launch and future plans - Traffic has remained strong, with over 5% growth since the menu launch, and management plans to maintain this momentum through continued execution [36][37] Question: Understanding margin pressures and one-time costs - Management acknowledged one-time costs related to the menu launch, including marketing and training expenses, but expects margins to improve as sales grow [41][43] Question: Free cash flow expectations - The company was slightly free cash flow positive in Q1 and anticipates being free cash flow positive in Q3 and Q4 [50][51]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 increased by 2% year-over-year to $123.8 million [19] - System-wide comparable restaurant sales increased by 4.4%, with a 4.7% increase at company-owned restaurants and a 2.9% increase at franchise restaurants [19] - Company average unit volumes were $1.31 million in Q1 2025 [19] - Net loss for Q1 2025 was $9.1 million, or a loss of $0.20 per diluted share, compared to a net loss of $6.1 million, or a loss of $0.14 per diluted share in the previous year [21] - Adjusted EBITDA for Q1 2025 was $2.4 million, down from $5.5 million in Q1 2024 [22] Business Line Data and Key Metrics Changes - Same-store sales increased by 4.7% in company-owned restaurants and 4.4% system-wide, driven by new menu items and marketing efforts [5][19] - Traffic increased by 1.8% and average check increased by 2.9%, including a 1.3% effective pricing increase during the quarter [19] Market Data and Key Metrics Changes - The Easter holiday shift from Q1 2024 to Q2 2025 benefited Q1 2025 comparable sales by approximately 50 basis points [19] - The company experienced a significant improvement in sales trends post-March menu launch, with a 5% increase through April [19][20] Company Strategy and Development Direction - The company is focused on operational excellence and has implemented a comprehensive training program for the new menu rollout [6][7] - A significant menu transformation was executed, with nearly two-thirds of the menu being new or improved, aimed at increasing brand relevance and customer engagement [10][12] - The marketing strategy has shifted to include broader reach awareness generating vehicles, such as connected TV and digital audio, to attract a wider audience [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the foundation laid for future growth, citing strong sales momentum and strategic cost savings [18][23] - The company anticipates continued sales growth and improved margins as one-time costs related to the menu rollout are expected to normalize [45][46] - Full-year guidance for 2025 includes total revenue of $503 million to $512 million, with mid-single-digit comparable restaurant sales growth [24] Other Important Information - The company opened one new company-owned restaurant and closed three in Q1 2025, with plans to open two new company-owned restaurants in 2025 [22][25] - Capital expenditures for Q1 2025 totaled $2.9 million, significantly lower than $8.6 million in 2024 [22] Q&A Session Summary Question: Marketing commitment and loyalty customer response to the new menu - Management indicated that marketing investment has roughly doubled, with a focus on broader reach awareness generating vehicles, and loyalty members have shown double-digit transaction growth [30][34] Question: Traffic trends since the menu launch and future plans - Management reported strong sales growth and maintained that traffic has remained robust since the menu launch, with plans to continue executing at a high level [39][40] Question: Understanding one-time costs and ongoing expenses - Management clarified that one-time costs included approximately $500,000 in marketing and $1 million in other menu rollout costs, with expectations for COGS to stabilize around 26% for the remainder of the year [46][48] Question: Free cash flow expectations - Management confirmed that the company was slightly free cash flow positive in Q1 and anticipates being free cash flow positive in Q3 and Q4 [54]

[Noodles & Company First Quarter 2025 Financial Results](index=1&type=section&id=Noodles%20%26%20Company%20First%20Quarter%202025%20Financial%20Results) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) In the first quarter of 2025, Noodles & Company reported a 2.0% increase in total revenue to $123.8 million and a 4.4% rise in system-wide comparable restaurant sales Despite this top-line growth, the company experienced a wider net loss of $9.1 million, compared to $6.1 million in the prior year's quarter Profitability metrics declined, with restaurant contribution margin falling to 10.3% from 13.1% and Adjusted EBITDA decreasing to $2.4 million from $5.5 million year-over-year Financial Highlights Summary | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $123.8 million | $121.4 million | +2.0% | | System-Wide Comparable Sales | +4.4% | -5.4% | Up | | - Company-Owned | +4.7% | -5.7% | Up | | - Franchise | +2.9% | -4.5% | Up | | Net Loss | ($9.1 million) | ($6.1 million) | Increased Loss | | Loss per Diluted Share | ($0.20) | ($0.14) | Increased Loss | | Restaurant Contribution Margin | 10.3% | 13.1% | -2.8 p.p. | | Adjusted EBITDA | $2.4 million | $5.5 million | -56.4% | - One new company-owned restaurant was opened during the first quarter of **2025**[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Drew Madsen expressed satisfaction with the strong comparable sales and traffic in Q1, attributing the momentum to a reimagined new menu launched on March 12th, supported by increased marketing The company is confident in its new brand strategy, growing loyalty program, and focus on operational excellence Combined with reduced capital spending and cost savings, management believes the company is well-positioned to strengthen its balance sheet and capitalize on future growth - The introduction of a new menu on March **12th**, backed by a new brand strategy and increased marketing, has driven a comparable sales increase of approximately **5%** through April[3](index=3&type=chunk) - The company's strategy focuses on leveraging the new menu, growing the loyalty program, improving guest experience through operational excellence, reducing capital spending, and implementing cost savings to improve financial health[3](index=3&type=chunk) [Liquidity Update](index=1&type=section&id=Liquidity%20Update) As of April 1, 2025, the company reported $1.4 million in cash and cash equivalents Total outstanding debt stood at $102.7 million, with an additional $19.3 million available for borrowing under its revolving credit facility Liquidity Position | Liquidity Item | Amount (as of April 1, 2025) | | :--- | :--- | | Cash and Cash Equivalents | $1.4 million | | Outstanding Debt | $102.7 million | | Available Borrowing Capacity | $19.3 million | [Full Year 2025 Business Outlook](index=1&type=section&id=Business%20Outlook) Noodles & Company has revised its full-year 2025 guidance The company now expects a restaurant level contribution margin between 12.0% and 14.0%, a slight downward revision It also increased its forecast for company-owned restaurant closures to a range of 13 to 17 Other guidance points, including total revenue projections of $503 million to $512 million, remain unchanged Business Outlook Guidance | Guidance Metric | Full Year 2025 Outlook | Previous Guidance | | :--- | :--- | :--- | | Total Revenue | $503M - $512M | Unchanged | | Comparable Restaurant Sales | Mid-single digit growth | Unchanged | | Restaurant Level Contribution Margins | 12.0% - 14.0% | 12.5% - 14% | | G&A Expenses | $49M - $52M | Unchanged | | Net Interest Expense | $8M - $10M | Unchanged | | Company-Owned Restaurant Closures | 13 to 17 | 12 to 15 | | Capital Expenditures | $11M - $13M | Unchanged | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's performance The Statement of Operations shows a revenue increase but a wider net loss for Q1 2025 compared to Q1 2024 The Balance Sheet indicates a stockholders' deficit, and operating data highlights a positive turn in comparable restaurant sales [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the first quarter ended April 1, 2025, total revenue increased to $123.8 million from $121.4 million in the prior year However, total costs and expenses rose to $130.2 million, resulting in a loss from operations of $6.4 million and a net loss of $9.1 million, compared to a net loss of $6.1 million in Q1 2024 Statements of Operations Summary | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $123,794 | $121,395 | | Total Costs and Expenses | $130,181 | $125,491 | | Loss from Operations | $(6,387) | $(4,096) | | Net Loss | $(9,057) | $(6,140) | | Diluted Loss Per Share | $(0.20) | $(0.14) | [Consolidated Selected Balance Sheet Data](index=6&type=section&id=Consolidated%20Selected%20Balance%20Sheet%20Data) As of April 1, 2025, the company's balance sheet showed total assets of $319.5 million and total liabilities of $333.4 million This resulted in a total stockholders' deficit of $13.9 million, an increase from the $5.6 million deficit at the end of fiscal 2024 Balance Sheet Summary | (in thousands) | April 1, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $319,450 | $324,648 | | Total Liabilities | $333,355 | $330,227 | | Total Stockholders' (Deficit) | $(13,905) | $(5,579) | [Selected Operating Data](index=6&type=section&id=Selected%20Operating%20Data) System-wide comparable restaurant sales grew 4.4% in Q1 2025, a significant recovery from a 5.4% decline in Q1 2024 Company-owned comparable sales increased by 4.7% The total number of restaurants decreased slightly to 460 (369 company-owned, 91 franchise) at the end of the quarter Operating Data Summary | Comparable Restaurant Sales | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Company-owned | 4.7% | (5.7)% | | Franchise | 2.9% | (4.5)% | | System-wide | 4.4% | (5.4)% | Operating Data Summary | Restaurant Count | End of Q1 2025 | End of Q1 2024 | | :--- | :--- | :--- | | Company-owned | 369 | 380 | | Franchise | 91 | 89 | | Total | 460 | 469 | [Reconciliation of Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for non-GAAP measures used by management to evaluate performance For Q1 2025, Adjusted EBITDA was $2.4 million, down from $5.5 million year-over-year Adjusted Net Loss was $9.1 million The Restaurant Contribution Margin, a key metric of store-level profitability, declined to 10.3% from 13.1% in Q1 2024 [Reconciliation of Net Loss to EBITDA and Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20EBITDA%20and%20Adjusted%20EBITDA) For Q1 2025, the company reported a net loss of $9.1 million After adjusting for interest, taxes, depreciation, amortization, and other items such as impairments and stock-based compensation, Adjusted EBITDA was $2.4 million This represents a significant decrease from the $5.5 million Adjusted EBITDA in Q1 2024 EBITDA and Adjusted EBITDA Reconciliation | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | $(9,057) | $(6,140) | | EBITDA | $703 | $3,274 | | Adjustments | $1,701 | $2,225 | | **Adjusted EBITDA** | **$2,404** | **$5,499** | [Reconciliation of Net Loss to Adjusted Net Loss](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20Net%20Loss) Adjusted Net Loss for Q1 2025 was $9.1 million, or ($0.20) per diluted share This compares to an Adjusted Net Loss of $5.8 million, or ($0.13) per diluted share, in Q1 2024 Adjustments from GAAP Net Loss were minor, primarily related to impairments, lease exit costs, and severance Adjusted Net Loss Reconciliation | (in thousands, except per share) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | $(9,057) | $(6,140) | | **Adjusted Net Loss** | **$(9,109)** | **$(5,827)** | | Adjusted Loss per Share (Diluted) | $(0.20) | $(0.13) | [Reconciliation of Operating Loss to Restaurant Contribution](index=9&type=section&id=Reconciliation%20of%20Operating%20Loss%20to%20Restaurant%20Contribution) The company's restaurant contribution, a measure of store-level profitability, was $12.5 million in Q1 2025, down from $15.6 million in Q1 2024 This resulted in a restaurant contribution margin of 10.3%, a decrease from 13.1% in the prior-year period, calculated by reconciling from the GAAP operating loss Restaurant Contribution Reconciliation | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Loss from Operations | $(6,387) | $(4,096) | | **Restaurant Contribution** | **$12,487** | **$15,592** | | Restaurant Revenue | $121,326 | $119,003 | | **Restaurant Contribution Margin** | **10.3%** | **13.1%** | [Key Definitions](index=2&type=section&id=Key%20Definitions) The report defines several key metrics used to evaluate business performance These include 'Comparable Restaurant Sales' to measure year-over-year performance of existing stores, 'Restaurant Contribution Margin' to assess restaurant-level profitability, and 'Adjusted EBITDA' to gauge core operating performance by excluding certain non-cash or non-recurring items - **Comparable Restaurant Sales:** Represents year-over-year sales comparisons for restaurants open for at least **18** full periods, reflecting changes in traffic and per-person spending[9](index=9&type=chunk) - **Restaurant Contribution Margin:** Calculated as restaurant revenue less restaurant-level operating costs (cost of sales, labor, occupancy, etc.), used to evaluate restaurant-level efficiency and performance[10](index=10&type=chunk) - **Adjusted EBITDA:** Represents net income before interest, taxes, depreciation, amortization, and other adjustments like impairments, stock-based compensation, and severance costs, used to assess core operating performance[11](index=11&type=chunk)

Core Insights - Noodles & Company reported a net loss of $9.1 million for Q1 2025, compared to a net loss of $6.1 million in Q1 2024, indicating a decline in profitability despite a slight increase in total revenue [6][21][22] - The company experienced a 2.0% increase in total revenue, reaching $123.8 million, driven by a 4.4% increase in comparable restaurant sales [6][21] - The CEO highlighted the positive impact of a newly reimagined menu and increased marketing efforts, which contributed to a 5% rise in comparable sales since its launch [3][6] Financial Performance - Total revenue increased from $121.4 million in Q1 2024 to $123.8 million in Q1 2025, marking a 2.0% growth [6][21] - Comparable restaurant sales rose by 4.4%, with company-owned restaurants seeing a 4.7% increase and franchise restaurants a 2.9% increase [6][21] - The adjusted EBITDA for Q1 2025 was $2.4 million, down from $5.5 million in Q1 2024 [6][21][27] Operational Metrics - The restaurant contribution margin decreased to 10.3% in Q1 2025 from 13.1% in Q1 2024, reflecting increased operating costs [6][36][39] - Operating margin for Q1 2025 was reported at (5.2)%, compared to (3.4)% in Q1 2024 [6][21] - The company opened one new company-owned restaurant during the quarter [6] Liquidity and Debt - As of April 1, 2025, the company had cash and cash equivalents of $1.4 million and outstanding debt of $102.7 million [4] - The available amount for future borrowings under its revolving credit facility was $19.3 million [4] Business Outlook - The company revised its guidance for 2025, expecting restaurant level contribution margins to be between 12.0% and 14.0%, down from a previous range of 12.5% to 14% [5][7] - The company anticipates general and administrative expenses to be between $49 million and $52 million, including stock-based compensation of approximately $3.7 million [7]

Core Viewpoint - Noodles & Company will host a conference call to discuss its first quarter 2025 financial results on May 7, 2025, at 4:30 p.m. ET [1] Group 1: Conference Call Details - The conference call can be accessed live by dialing 201-389-0920, with a replay available until May 21, 2025, by dialing 412-317-6671 using passcode 13752400 [2] - The conference call will also be webcast live on the company's corporate website under the "Events & Presentations" page, with an archive available shortly after the call [3] Group 2: Company Overview - Noodles & Company has been serving a variety of noodle dishes since 1995, with over 450 restaurants and 7,000 team members dedicated to providing quality food and service [4]

Core Insights - Noodles & Company is launching a 14-day promotional event called the Taste Tour, starting April 12, 2025, featuring exclusive offers for Noodles Rewards members [1][4] - The promotion includes daily deals on new and classic menu items, with a focus on bold flavors and upgraded dishes [1][4][5] Promotions and Offers - The Taste Tour begins with a $5 offer on Creamy Cheddar Mac & Cheese, followed by various exclusive deals for Noodles Rewards members over the 14 days [4][6] - New members can join the Noodles Rewards program for free to access daily offers, while existing members can opt for SMS notifications for updates [2][6] Membership Benefits - Noodles Rewards members earn points on orders, redeemable for menu items, and enjoy additional perks such as surprise offers and birthday rewards [7] - The program aims to enhance customer loyalty and engagement through exclusive promotions and a refreshed menu experience [3][7] Company Background - Noodles & Company has been serving globally inspired noodle dishes since 1995, with over 460 locations [8] - The company has received multiple accolades for its commitment to diversity, employee satisfaction, and customer loyalty programs [8]