Core Insights - Noodles & Company (NDLS) reported a notable improvement in sales for the fiscal fourth quarter ending December 31, 2024, exceeding the BlackBox Fast Casual Index in both sales and customer traffic [1][2] - The company experienced a 0.8% year-over-year increase in system-wide comparable sales, with company-owned restaurants growing by 0.5% and franchise locations by 1.9% [2] - Digital sales for company-owned restaurants increased by 5.6% year-over-year, contributing to the overall sales growth [2] Sales Performance - The improvement in comparable sales was attributed to the introduction of three new menu items and promotional offers during the first two months of the quarter [3] - The strongest sales performance occurred in the last four weeks of the quarter, following the end of promotional activities [3] Strategic Outlook - The recovery in sales and traffic during Q4 provides a solid foundation for Noodles & Company as it enters 2025 [4] - The company is focused on menu transformation, enhancing digital channels, and expanding its loyalty program [4] - NDLS plans to strengthen its balance sheet by strategically reducing planned capital expenditures in 2025 [4] Stock Performance - NDLS shares have declined by 72.3% over the past year, contrasting with a 4.3% growth in the Retail - Restaurants industry [7] - Despite the challenging consumer environment, the company's focus on menu innovation and digital capabilities is expected to support its growth prospects [7]

Company to Host Investor Meetings at 27th Annual ICR ConferenceBROOMFIELD, Colo., Jan. 13, 2025 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today released preliminary, unaudited sales results for the fourth fiscal quarter ended December 31, 2024. Preliminary Fourth Quarter of 2024 Sales Results Compared to the Fourth Quarter of 20231: Fourth quarter system-wide comparable sales increased 0.8%, comprised of a 0.5% increase at company-owned restaurants and a 1.9% increase at franchise restaurants.Fou ...

Experience Craveable Moments this Season with Weekly Limited-Edition Crispy Drops, Available All Month Long BROOMFIELD, Colo., Dec. 2, 2024 /PRNewswire/ -- Noodles & Company (NASDAQ: NDLS), the fast-casual brand known for delivering Uncommon Goodness, is serving up holiday cheer with the return of its fan-favorite Holiday CrispiDays celebration. Starting today, guests can enjoy a new limited-edition Holiday Crispy flavor each week, adding a festive twist to its renowned classic treat. These exclusive flavor ...

Cozy Up This Season with Exclusive Noodles Gear, Limited-Edition Merch, and a Can't-Miss Black Friday DealBROOMFIELD, Colo., Nov. 25, 2024 /PRNewswire/ -- Just in time for holiday shopping, Noodles & Company (NASDAQ: NDLS), the fast-casual chain known for spreading Uncommon Goodness, is turning up the heat this holiday season with its first-ever Noodles Merch Store, launching today. The exclusive Noodles merchandise includes a festive winter-themed sweater, branded holiday onesie, and even matching bandanas ...

Core Insights - Noodles & Company is launching a new lineup of specialty Mac & Cheese dishes, enhancing its menu with bold flavors and made-to-order options available in select markets [1][3][4] Product Innovation - The new specialty Mac & Cheese offerings include Buffalo Chicken Ranch, Garlic Bacon Ranch, and Pulled Pork BBQ, each featuring unique ingredients and flavors [3][4] - The Wisconsin Mac & Cheese remains the best-selling item, with over 10 million bowls sold in 2023 [3] Culinary Evolution - The introduction of specialty Mac & Cheese marks a significant step in the brand's culinary evolution, with additional new dishes like Chicken Riggie and a Green Goddess Salad being tested in select markets [5] Customer Engagement - Noodles & Company offers a "Goodness Guarantee," allowing customers to exchange their dish for another if they are not satisfied [6] - The Noodles Rewards program provides incentives for customers, including a free entree after the first purchase and exclusive offers [7] Catering and Convenience - The new Mac & Cheese dishes are available for catering, making them suitable for various events, and can be ordered online or via the mobile app [8] Company Background - Noodles & Company has been serving diverse noodle dishes since 1995, with over 460 locations and a strong reputation for employee benefits and community engagement [9]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 decreased by 4.0% year-over-year to $122.8 million [41] - System-wide comparable restaurant sales decreased by 3.3%, with company-owned restaurants down 3.4% and franchise restaurants down 2.9% [41] - Company average unit volumes were $1.27 million, and restaurant level contribution margin fell to 12.8% from 16.4% in Q3 2023 [42] - Net loss for Q3 was $6.8 million, translating to a loss of $0.15 per diluted share, compared to a net income of $700,000 or earnings of $0.02 per diluted share last year [46] Business Line Data and Key Metrics Changes - Catering sales increased from 1% in 2022 to 1.7% year-to-date in 2024, with a goal of reaching 4% to 5% in the future [34] - The introduction of new menu items has led to improved traffic trends, with a decrease in negative traffic from approximately -6% to -0.8% in Q4 to date [25] Market Data and Key Metrics Changes - The company experienced a significant decline in third-party delivery sales starting late July, which negatively impacted overall sales [10][32] - The competitive environment has led to increased promotional activities, affecting same-store sales negatively in August and September [9] Company Strategy and Development Direction - The company is focusing on long-term growth through menu innovation and operational excellence, with a strategic shift from aggressive discounting to enhancing guest experience [8][12] - Five strategic priorities have been established to drive sustainable growth, including operations excellence, menu transformation, digital ecosystem leverage, catering growth, and financial foundation strengthening [14][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging consumer environment and competitive discounting but expressed confidence in the company's long-term growth potential [6][12] - The company is optimistic about the positive early results from menu innovations and plans to continue enhancing its digital and catering channels [11][28] Other Important Information - The company has reduced capital expenditures from $52 million in 2023 to a projected $29 million to $31 million in 2024 [38] - A new app for Android and iOS is set to launch in Q4, aimed at improving customer engagement and conversion rates [31] Q&A Session Summary Question: Sales trajectory throughout the quarter - Management noted a significant drop in third-party delivery sales at the end of July, which contributed to the company's inability to mirror industry trends in August [56] Question: Details on delivery sales drop - The drop was attributed to changes in the delivery platform's algorithm rather than a shift in consumer behavior [62] Question: Guidance and confidence in trends - Management provided a wide range for guidance to account for variability in the current environment, expressing confidence in ongoing positive trends [65] Question: Free cash flow generation expectations - The company anticipates being free cash flow positive for the full year 2025, supported by lower capital expenditures [66]

For the quarter ended September 2024, Noodles & Co. (NDLS) reported revenue of $122.75 million, down 4% over the same period last year. EPS came in at -$0.12, compared to $0.04 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $125.43 million, representing a surprise of -2.14%. The company delivered an EPS surprise of -71.43%, with the consensus EPS estimate being -$0.07.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

Noodles & Co. (NDLS) came out with a quarterly loss of $0.12 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -71.43%. A quarter ago, it was expected that this restaurant chain would post a loss of $0.06 per share when it actually produced a loss of $0.05, delivering a surprise of 16.67%.Over the last four quarters, the company ...

Financial Performance - System-wide comparable restaurant sales decreased by 3.3% in Q3 2024 compared to Q3 2023, with a 3.4% decrease at company-owned restaurants and a 2.9% decrease at franchise-owned restaurants[63] - Total revenue decreased by $5.1 million, or 4.0%, to $122.8 million in Q3 2024 compared to $127.9 million in Q3 2023[91] - Restaurant revenue declined by $5.0 million, or 4.0%, to $120.2 million in Q3 2024 from $125.2 million in Q3 2023[90] - Net loss for Q3 2024 was $6.8 million, compared to a net income of $0.7 million in Q3 2023[90] - Total revenue decreased by $7.6 million, or 2.0%, to $371.5 million in the first three quarters of 2024 compared to $379.1 million in the same period of 2023[102] Operating Costs - Restaurant operating costs increased to 103.9% of total revenue in Q3 2024, compared to 98.4% in Q3 2023[88] - Labor costs increased to 32.0% of restaurant revenue in Q3 2024, up from 31.3% in Q3 2023[93] - The company incurred significant third-party delivery fees due to high usage of delivery services, impacting overall operating costs[67] - Labor costs decreased by $2.8 million, or 2.4%, as a percentage of restaurant revenue decreased to 31.8%[104] Restaurant Operations - In the first three quarters of 2024, the company opened ten new company-owned restaurants and two new franchise restaurants, while selling six company-owned restaurants to a franchisee[68] - The company expects to close a total of 10 to 15 company-owned restaurants in 2024 due to underperformance[69] - The company opened 3 new company-owned restaurants in Q3 2024, while closing 5, resulting in a total of 377 company-owned restaurants[85] - The company had 377 company-owned restaurants and 94 franchise restaurants in 31 states as of October 1, 2024[68] EBITDA and Expenses - EBITDA for Q3 2024 was $2.448 million, a decrease from $8.660 million in Q3 2023, while adjusted EBITDA was $4.896 million compared to $10.915 million in the same period[83] - General and administrative expenses rose by $1.0 million, or 8.7%, to $12.9 million in Q3 2024, representing 10.5% of total revenue[96] - Interest expense increased by $0.9 million, or 75.5%, in Q3 2024 due to higher average debt balances and interest rates[99] - General and administrative expenses increased by $1.5 million, or 4.0%, as a percentage of revenue increased to 10.6%[107] Cash Flow and Liquidity - Net cash provided by operating activities was $17.5 million, down from $27.3 million in the same period of 2023[114] - As of October 1, 2024, the cash balance was $3.3 million, compared to $3.0 million as of January 2, 2024[121] - The company expects to maintain sufficient cash flows from operations and available borrowings to meet liquidity needs for at least the next twelve months[121] Debt and Interest Rates - As of October 1, 2024, the company had $89.9 million of indebtedness and $3.0 million of letters of credit outstanding under its A&R Credit Agreement[126] - The average interest rate on outstanding borrowings during the first three quarters of 2024 was 8.67%, up from 8.0% during the same period in 2023, reflecting an increase in market base rates[129] - A 1.0% increase or decrease in the effective interest rate would result in a pre-tax interest expense fluctuation of approximately $0.9 million on an annualized basis[129] Inflation and Commodity Prices - Commodity inflation in Q3 2024 was less than 2%, showing improvement from historically high costs in 2022[65] - The company anticipates inflation may affect its results in the near future, with primary inflationary factors being food costs, labor costs, and energy costs[131] - Commodity price volatility is a risk, with potential impacts on restaurant operating costs as a percentage of revenue if menu prices are not adjusted accordingly[130] - The company has implemented risk management techniques in purchasing contracts to minimize price volatility from commodity prices[130] Future Plans - The company plans to introduce a revitalized menu starting late in Q3 2024 and continuing into 2025[64] - Capital expenditures are estimated to be approximately $29.0 million to $31.0 million for fiscal year 2024[119] Financial Ratios - The Consolidated Total Lease Adjusted Leverage Ratio was increased to a maximum of 5.50 to 1.00 for the fiscal quarter ending October 1, 2024, stepping down to 4.50 to 1.00 for the fiscal quarter ending March 30, 2027[124] - The Consolidated Fixed Charge Coverage Ratio was amended to be no less than 1.05 to 1.00 for the fiscal quarter ending October 1, 2024, stepping up to 1.25 to 1.00 for the fiscal quarter ending June 30, 2026[125] Off-Balance Sheet Arrangements - The company had no off-balance sheet arrangements or obligations as of October 1, 2024[127]

Exhibit 99.1 Noodles & Company Announces Third Quarter 2024 Financial Results Broomfield, Colo., November 6, 2024 (GLOBE NEWSWIRE) - Noodles & Company (Nasdaq: NDLS) today announced financial results for its third quarter ended October 1, 2024. Key highlights for the third quarter of 2024 versus the third quarter of 2023 include: • Total revenue decreased 4.0% to $122.8 million from $127.9 million in the third quarter of 2023. • Comparable restaurant sales decreased 3.3% system-wide, comprised of a 3.4% dec ...