PART I [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents Noodles & Company's unaudited condensed consolidated financial statements for Q2 2021, including balance sheets, operations, equity, cash flows, and accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$360.2 million** as of June 29, 2021, driven by higher cash, while total liabilities remained stable and equity grew to **$35.4 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 29, 2021 | December 29, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $17,324 | $7,840 | | Total current assets | $34,964 | $23,714 | | Total assets | $360,155 | $353,631 | | **Liabilities & Equity** | | | | Total current liabilities | $70,761 | $58,129 | | Long-term debt, net | $35,754 | $40,949 | | Total liabilities | $324,712 | $323,932 | | Total stockholders' equity | $35,443 | $29,699 | | Total liabilities and stockholders' equity | $360,155 | $353,631 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2021 saw a significant turnaround with total revenue up **56.8%** to **$125.6 million**, resulting in a net income of **$5.7 million** and diluted EPS of **$0.12** Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | YTD 2021 | YTD 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $125,649 | $80,157 | $235,226 | $180,505 | | Income (loss) from operations | $6,210 | $(12,525) | $4,845 | $(17,379) | | Net income (loss) | $5,683 | $(13,478) | $3,706 | $(19,313) | | Diluted EPS | $0.12 | $(0.30) | $0.08 | $(0.44) | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased to **$35.4 million** by Q2 2021, primarily driven by **$3.7 million** in net income and stock-based compensation - Total stockholders' equity rose to **$35.4 million** at the end of Q2 2021, up from **$29.7 million** at the end of 2020[11](index=11&type=chunk) - The increase in equity was primarily due to net income of **$3.7 million** and stock-based compensation of **$2.3 million** during the first half of 2021[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly improved to **$23.2 million** for YTD 2021, leading to a **$9.5 million** net increase in cash despite investing and financing outflows Cash Flow Summary (in thousands) | Activity | YTD Ended June 29, 2021 | YTD Ended June 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23,246 | $6,707 | | Net cash used in investing activities | $(7,476) | $(6,810) | | Net cash (used in) provided by financing activities | $(6,286) | $51,720 | | **Net increase in cash and cash equivalents** | **$9,484** | **$51,617** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business operations, COVID-19 impact, debt, leases, revenue recognition, and impairment, with **451** system-wide restaurants as of June 29, 2021 - As of June 29, 2021, the Company had **451** restaurants system-wide, consisting of **374** company-owned and **77** franchise locations[17](index=17&type=chunk) - The company's financial performance has seen sequential improvement since the initial disruption from the COVID-19 pandemic, aided by investments in off-premise and digital channels[20](index=20&type=chunk) - As of June 29, 2021, the company had **$38.8 million** of indebtedness outstanding under its Second Amended Credit Facility and was in compliance with all debt covenants[36](index=36&type=chunk)[39](index=39&type=chunk) - The company recognized revenue from gift card breakage over an estimated 24-month redemption period. The gift card liability was **$2.3 million** (current) and **$0.4 million** (long-term) as of Q2 2021[58](index=58&type=chunk)[59](index=59&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 the significant recovery from COVID-19, highlighting a **56.8%** increase in Q2 2021 comparable sales, strong digital growth, improved margins, and plans for accelerated unit expansion [Impact of COVID-19 and Recent Trends](index=18&type=section&id=Impact%20of%20COVID-19%20and%20Recent%20Trends) The company's performance has sequentially improved since Q2 2020, with Q2 2021 system-wide comparable sales up **56.8%**, and plans for accelerated unit growth starting in 2022 - System-wide comparable restaurant sales increased **56.8%** in Q2 2021, with company-owned restaurants up **55.7%** and franchise restaurants up **63.8%**[69](index=69&type=chunk) - The company has a strategic growth plan for at least **7%** annual system-wide unit growth starting in 2022, aiming for **10%** annual growth and a long-term target of at least **1,500** units[75](index=75&type=chunk) - Labor availability has declined in some markets, but the impact has been mitigated by optimizing hiring, retention, and implementing a modified labor model to improve efficiency[73](index=73&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Operational results show strong recovery, with Q2 2021 total revenue up **56.8%** to **$125.6 million** and YTD revenue up **30.3%** to **$235.2 million**, leading to net income in both periods Q2 2021 vs Q2 2020 Performance (in thousands) | Metric | Q2 2021 | Q2 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $125,649 | $80,157 | $45,492 | 56.8% | | Net Income (Loss) | $5,683 | $(13,478) | $19,161 | * | | Company-owned AUV | $1,350 | $891 | $459 | 51.5% | | Company-owned Comp Sales | 55.7% | (30.1)% | N/A | N/A | YTD 2021 vs YTD 2020 Performance (in thousands) | Metric | YTD 2021 | YTD 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $235,226 | $180,505 | $54,721 | 30.3% | | Net Income (Loss) | $3,706 | $(19,313) | $23,019 | * | | Company-owned AUV | $1,260 | $966 | $294 | 30.4% | | Company-owned Comp Sales | 29.8% | (19.0)% | N/A | N/A | - Adjusted EBITDA for Q2 2021 was **$13.8 million**, a significant improvement from a negative **$3.3 million** in Q2 2020[89](index=89&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 29, 2021, the company had **$17.3 million** in cash and **$57.0 million** available credit, with **$23.2 million** cash from operations for YTD 2021, sufficient for future liquidity - The company's cash and cash equivalents balance was **$17.3 million** as of June 29, 2021, with **$57.0 million** available under its credit facility[122](index=122&type=chunk) - Estimated capital expenditures for fiscal year 2021 are approximately **$20.0 million** to **$24.0 million**, intended for new restaurant openings, kitchen equipment, and maintenance[128](index=128&type=chunk) - As of June 29, 2021, the company had **$38.8 million** of indebtedness outstanding and expects to pay down a portion of this debt over the next two quarters[130](index=130&type=chunk)[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rate changes on variable-rate debt, commodity price volatility, and inflation, with a **1.0%** interest rate change impacting pre-tax expense by **$0.4 million** annually - The company is exposed to interest rate risk on its **$38.8 million** of variable-rate debt. A **1.0%** change in the effective interest rate would result in an annualized pre-tax interest expense fluctuation of about **$0.4 million**[137](index=137&type=chunk) - Commodity price volatility affects food costs, but the company uses purchasing contracts to minimize this risk and can adjust menu pricing to address cost increases[138](index=138&type=chunk) - Inflationary factors affecting operations include food, labor, energy, and construction costs. Wage inflation, in particular, has affected results and is expected to continue to do so[139](index=139&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 29, 2021, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 29, 2021[142](index=142&type=chunk) - No changes occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[143](index=143&type=chunk) PART II [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to routine legal proceedings, with management assessing that any unfavorable outcomes would not be material to the financial statements - The company is subject to routine lawsuits and claims, but as of June 29, 2021, it is unable to ascertain the ultimate liability and does not expect any material financial impact[145](index=145&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of the Annual Report on Form 10-K for fiscal year 2020 - No material changes to the company's risk factors have occurred since the filing of the Annual Report on Form 10-K for the fiscal year ended December 29, 2020[146](index=146&type=chunk) [Other Part II Items](index=37&type=section&id=Other%20Part%20II%20Items) This section covers other required disclosures, including no unregistered equity sales, no defaults on senior securities, and an index of exhibits - The company reported no unregistered sales of equity securities or use of proceeds (Item 2)[146](index=146&type=chunk) - There were no defaults upon senior securities (Item 3)[146](index=146&type=chunk) - An index of exhibits filed with the report is provided under Item 6, including employment agreements and officer certifications[148](index=148&type=chunk)

Noodles & Company (NASDAQ:NDLS) Q1 2021 Earnings Conference Call April 29, 2021 4:30 PM ET Company Participants Carl Lukach - CFO Dave Boennighausen - CEO Conference Call Participants Jake Bartlett - Truist Nicole Miller - Piper Sandler Andy Barish - Jefferies Operator Good afternoon and welcome to today's Noodles & Company's First Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now introduce Noodles & Company's Chief Financial Officer, Carl Lukach. You may begin. Carl Lukach Thank yo ...

Financial Performance - In Q1 2021, system-wide comparable restaurant sales increased by 10.7%, with a 10.5% increase for company-owned restaurants and an 11.7% increase for franchise restaurants[73]. - The company reported an EBITDA of $4.222 million for Q1 2021, compared to $481,000 in Q1 2020, and an adjusted EBITDA of $6.255 million, up from $1.785 million year-over-year[91]. - Total revenue increased by $9.2 million, or 9.2%, to $109.6 million in Q1 2021 compared to $100.3 million in Q1 2020[100]. - Net loss improved to $(1.977) million in Q1 2021 from $(5.835) million in Q1 2020, a 66.1% reduction[99]. - Net cash provided by operating activities increased to $3.8 million in Q1 2021 from a net cash used of $0.7 million in Q1 2020[114]. - Average unit volume (AUV) for comparable restaurant sales increased to $1,170, a 12.7% increase from $1,038 in the same period last year[99]. Operational Changes - The company permanently closed six company-owned restaurants in Q1 2021 but does not anticipate a significant number of closures in the near future[77]. - Labor efficiencies were implemented to mitigate increased base labor costs, including optimizing food preparation times and modifying labor models due to increased digital ordering[76]. - Incremental costs of sales have been incurred due to increased packaging supplies for off-premise orders, but supply chain savings have resulted in lower overall costs[75]. - The company has seen impressive digital growth, contributing to its return to positive comparable sales in Q1 2021[74]. Supply Chain and COVID-19 Impact - The company experienced minimal disruption to its supply chain, although it continues to monitor the situation due to potential impacts from the COVID-19 pandemic[75]. - The company continues to actively monitor the evolving COVID-19 situation and may adjust operations as necessary to protect stakeholders[72]. Future Growth and Expansion - As of March 30, 2021, the company operated 372 company-owned restaurants and 76 franchise restaurants across 29 states, with plans for system-wide unit growth of at least 7% annually starting in 2022, aiming for 10% growth to reach at least 1,500 units[77]. - The company estimates capital expenditures for fiscal year 2021 will be approximately $20.0 million to $24.0 million, primarily for opening 8 to 11 company-owned restaurants[118]. Cost Management - Restaurant operating costs as a percentage of restaurant revenue decreased to 101.2% in Q1 2021 from 104.8% in Q1 2020[96]. - Labor costs decreased to 31.8% of restaurant revenue in Q1 2021 from 34.7% in Q1 2020 due to increased sales and labor initiatives[103]. - Occupancy costs decreased to 10.8% of revenue in Q1 2021 from 12.2% in Q1 2020, primarily due to restaurant closures[104]. - Other restaurant operating costs increased by 21.1% in Q1 2021, with third-party delivery fees rising to 5.7% of total revenue[105]. Cash and Debt Management - Cash and cash equivalents as of March 30, 2021, were $3.1 million, with $52.3 million available for future borrowings[112]. - The company had $38.8 million of indebtedness as of March 30, 2021, with a term loan requiring principal payments of $187,500 per quarter through Q3 2021[124]. - An increase or decrease of 1.0% in the effective interest rate on the $38.8 million outstanding borrowings would result in a pre-tax interest expense fluctuation of approximately $0.4 million annually[127]. - The company operates with negative working capital, relying on cash or credit/debit card payments for restaurant sales, which reduces the need for significant inventories[119]. - The company believes it will have sufficient liquidity to meet cash requirements for at least the next twelve months through available cash and cash flows from operations[124].

Noodles & Company (NASDAQ:NDLS) Q4 2020 Results Conference Call February 25, 2021 4:30 PM ET Company Participants Carl Lukach - Chief Financial Officer Dave Boennighausen - Chief Executive Officer Conference Call Participants Daniel Salmon - BMO Joshua Long - PIper Sandler Andy Barish - Jefferies Todd Brooks - CL King & Associates Operator Good afternoon, and welcome to today's Noodles & Company Fourth quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded ...

Noodles & Company (NASDAQ:NDLS) Q3 2020 Earnings Conference Call October 28, 2020 4:30 PM ET Company Participants Melissa Heidman - Executive Vice President and General Counsel Dave Boennighausen - Chief Executive Officer Conference Call Participants Jake Bartlett - Truist Nicole Miller - Piper Sandler Marshall Pittman - Jefferies Todd Brooks - CL King & Associates Operator Good afternoon, and welcome to today’s Noodles & Company Third Quarter 2020 Earnings Conference Call. All participants are now in a lis ...

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 Emerging growth company ☐ 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 quarterl ...