Restaurant Operations - In the first three quarters of 2023, Noodles & Company opened 13 new company-owned restaurants, bringing the total to 377 company-owned and 91 franchise restaurants across 31 states[63]. - The company permanently closed four company-owned restaurants in the first three quarters of 2023, with no significant closures anticipated in the near future[64]. - The company opened 4 new company-owned restaurants in Q3 2023, bringing the total to 377 at the end of the period[80]. Financial Performance - Revenue for the fiscal quarter ended October 3, 2023, was $20,554,000, compared to $18,217,000 for the same quarter in the previous year, reflecting an increase[77]. - Total revenue decreased by $1.5 million, or 1.2%, to $127.9 million in Q3 2023 compared to $129.4 million in Q3 2022[87]. - Total revenue increased by $6.1 million, or 1.6%, to $379.1 million in the first three quarters of 2023 compared to $373.0 million in the same period of 2022[100]. - Net income for Q3 2023 was $700,000, a decrease of $95,000 or 11.9% compared to Q3 2022[86]. Sales and Traffic - The company experienced a decline in restaurant-level traffic and total revenue during the first three quarters of 2023, attributed to consumer response to recent price increases[59]. - Comparable restaurant sales decreased by 3.7% in Q3 2023, with a 4.3% decrease at company-owned restaurants and a 1.2% decrease at franchise-owned restaurants[87]. - Comparable restaurant sales decreased 1.3% at company-owned restaurants and 1.1% system-wide in the first three quarters of 2023, primarily due to a decline in guest traffic[100]. Cost Management - Labor costs have risen due to high competition for restaurant workers, although there was a modest deceleration in wage inflation growth during the first three quarters of 2023[62]. - Restaurant operating costs as a percentage of restaurant revenue decreased to 25.1% in Q3 2023 from 28.1% in Q3 2022, primarily due to lower food and ingredient commodity pricing[88]. - Labor costs increased by $0.1 million, or 0.2%, in Q3 2023, with labor costs as a percentage of restaurant revenue rising to 31.3% from 30.8%[89][90]. - Occupancy costs increased by $0.4 million, or 3.3%, in Q3 2023, with occupancy costs as a percentage of revenue rising to 9.2% from 8.8%[91]. - General and administrative expenses increased by $0.3 million, or 2.3%, in Q3 2023, with these expenses as a percentage of revenue increasing to 9.3% from 9.0%[93]. - Cost of sales decreased by $8.8 million, or 8.6%, to 25.1% of restaurant revenue in the first three quarters of 2023 compared to 27.9% in the same period of 2022[101]. - Labor costs increased by $5.3 million, or 4.6%, to 32.0% of restaurant revenue in the first three quarters of 2023 compared to 31.1% in the same period of 2022[102]. - Occupancy costs increased by $1.0 million, or 3.0%, to 9.3% of revenue in the first three quarters of 2023 compared to 9.1% in the same period of 2022[103]. EBITDA and Margins - Adjusted EBITDA for the three quarters ended October 3, 2023, was $28,006,000, up from $23,163,000 in the same period last year[76]. - The restaurant contribution margin improved to 16.4% in the fiscal quarter ended October 3, 2023, compared to 14.4% in the same quarter of the previous year[77]. Cash Flow and Investments - Net cash provided by operating activities was $27.3 million in the first three quarters of 2023, compared to $7.8 million in the same period of 2022[113]. - Net cash used in investing activities increased to $36.6 million in the first three quarters of 2023 from $21.0 million in the same period of 2022, primarily due to new restaurant openings[114]. - Capital expenditures are estimated to be approximately $45.0 million to $50.0 million for fiscal year 2023, primarily for new restaurant openings and technology investments[117]. Debt and Interest - As of October 3, 2023, the company had $65.4 million of outstanding borrowings under its credit facility with an average interest rate of 8.00%, up from 4.09% in the same period of 2022[126]. - Interest expense, net increased by $0.5 million in Q3 2023 due to higher interest rates and debt balances[95]. - A 1.0% increase or decrease in the effective interest rate would result in a pre-tax interest expense fluctuation of approximately $0.7 million on an annualized basis[126]. Share Repurchase and Stock - The company repurchased 1,731,952 shares of its common stock for approximately $5.0 million at an average price of $2.86 per share during the third quarter ended October 3, 2023[136]. - The company’s share repurchase program announced on July 26, 2023, allows for up to $5.0 million in Class A common stock repurchases[136]. Market Conditions and Risks - The company continues to face risks related to inflation, economic uncertainties, and consumer behavior impacting restaurant traffic and revenue[58]. - Inflationary pressures on food, labor, energy, and construction materials are expected to continue affecting the company's results in the near future[128]. - The cost of food increased in 2022 due to commodity price volatility, but began to improve materially in late 2022 and into the first three quarters of 2023, particularly for chicken[127]. Internal Controls and Legal Matters - The company has not experienced any material changes in its internal control over financial reporting during the most recent fiscal quarter[131]. - There are currently no material legal proceedings involving the company, although it may become involved in ordinary course legal matters[133]. - The company’s disclosure controls and procedures are deemed effective as of October 3, 2023, ensuring timely and accurate reporting[130].

Financial Data and Key Metrics Changes - Noodles & Company's revenue decreased by 4.5% year-over-year to $125.2 million, and adjusted EBITDA fell by 17% to $9.3 million [6][22] - System-wide comparable restaurant sales decreased by 5.5%, with a decline of 5.9% at company-owned restaurants and 3.4% at franchise locations [22] - The company reported a GAAP net loss of $1.3 million, or a loss of $0.03 per diluted share, compared to net income of $1.3 million last year [27] Business Line Data and Key Metrics Changes - Comparable sales at company restaurants declined by 5.9% in Q2, while dine-in sales, which represented 22% of sales, saw a 14.2% increase in comparable sales growth [8][22] - Average unit volumes in July were $1.35 million, a 14% increase over pre-COVID levels [7][23] - Catering represented 1.4% of sales during Q2, showing a 40% growth from the same period in 2022 [16] Market Data and Key Metrics Changes - Traffic declines improved from a negative 14% in April to a decline of 5.8% in July [7] - Pricing during Q2 was 6.1%, with a significant reduction in the latter half of the quarter to approximately 3% [24] - The company anticipates total revenue for Q3 to be between $125 million and $130 million, with comparable restaurant sales expected to decline in the mid-single digits [24] Company Strategy and Development Direction - The company is focusing on five initiatives: price optimization, technology advancements, introduction of Chicken Parmesan, culinary assessment, and catering program expansion [9][15] - A corporate restructuring is expected to yield nearly $2 million in G&A savings annually, allowing for continued investment in technology and digital enhancements [20] - The company aims to achieve positive free cash flow in 2024 through revised unit growth and completion of technology investments [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that aggressive pricing led to a decline in traffic, particularly among lower-income consumers, and emphasized the need to improve value perception [6][35] - The company is optimistic about its long-term positioning, citing strengths in off-premise sales and suburban locations as tailwinds [8][21] - Management expressed confidence in the potential for recovery and growth, particularly with the upcoming launch of Chicken Parmesan and improvements in technology [14][32] Other Important Information - The company has revised its capital expenditures guidance for 2023 to $45 million to $50 million, down from $53 million to $58 million [19] - The Board of Directors has authorized a share repurchase program of up to $5 million to enhance long-term shareholder value [20] Q&A Session Summary Question: What caused the sharp deceleration in traffic? - Management attributed the decline primarily to aggressive pricing strategies, noting that they need to win back price-sensitive guests [35] Question: How much of the pricing increase was on the in-store menu? - The 13% year-over-year increase was across all channels, including in-store, with specific price increases implemented in previous quarters [38] Question: What measures are being taken to decrease G&A? - Management conducted a review of G&A structure to ensure resources are aligned with growth objectives, resulting in a streamlined approach [40] Question: What is the consumer feedback regarding the culinary assessment? - Initial research indicates opportunities for optimization, including the introduction of Chicken Parmesan, which has shown strong potential [61] Question: When is Chicken Parmesan expected to launch? - The launch is targeted for early fall, with a price point around $10.95 [63]

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 July 4, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Noodles & Company (NASDAQ:NDLS) Q1 2023 Earnings Conference Call May 10, 2023 4:30 PM ET Company Participants Carl Lukach - CFO Dave Boennighausen - CEO Conference Call Participants Joshua Long - Stevens Inc. Andrew Barish - Jefferies Todd Brooks - The Benchmark Company Jake Bartlett - Truist Securities Operator Good afternoon and welcome to today’s Noodles & Company's First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introdu ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act. 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 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXC ...

Financial Data and Key Metrics Changes - Adjusted EBITDA increased over 100% year-over-year in Q4 2022 [6] - Revenue for Q4 2022 rose 18.9% to $136.5 million compared to the previous year [17] - GAAP net income for Q4 was $975,000, or $0.02 per diluted share, compared to a net loss of $4.7 million, or negative $0.10 per diluted share last year [22] Business Line Data and Key Metrics Changes - Company-owned restaurant sales increased by 10.2%, while franchise locations saw a 1.3% increase in comparable sales [16] - Average unit volumes grew to $1.38 million for Q4 2022 [18] - Restaurant level contribution margin was 15.2%, a 280-basis point increase compared to last year [18] Market Data and Key Metrics Changes - Digital sales grew 11% year-over-year, accounting for over 54% of total sales in Q4 2022 [7] - The rewards program accounted for nearly 25% of sales, with membership increasing by 12.5% to 4.5 million [8] - Comparable restaurant sales for Q1 2023 are anticipated to be in the high single digits [16] Company Strategy and Development Direction - The company plans to leverage digital assets and enhance the rewards program to drive growth [9] - Focus on menu innovation and digital marketing to meet diverse consumer needs [9] - A strong unit pipeline is expected to support significant growth in 2023, with a target of 7.5% system-wide gross openings [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth driven by top-line expansion and improved cost structures [6][15] - The company anticipates a normalized cost of goods sold environment, with fixed pricing contracts expected to yield significant cost improvements [10][19] - Management noted that consumer health remains strong, with stable guest frequency and no significant trade-down observed [31] Other Important Information - The company expects capital expenditures of $53 million to $58 million for the full year, primarily for new unit growth and digital initiatives [24] - The company maintains a total debt balance of approximately $47.7 million and has $75 million of incremental liquidity available [24] Q&A Session Summary Question: Can you quantify the strong January trends? - Management noted that January sales were consistently strong, with momentum continuing into February, despite the Omicron impact [29][31] Question: What are the components of the comparable sales growth? - Pricing in Q4 was approximately 9%, with an additional 5% price increase implemented in February [33] Question: How confident is the company in achieving the 7.5% unit growth target? - Management expressed confidence in the pipeline, which is three times higher than the previous year, despite potential challenges in permitting and landlord delivery [45] Question: What are the expectations for labor costs and efficiencies? - Labor costs are expected to remain consistent or slightly higher than 2022 levels, with ongoing inflation anticipated [20][41] Question: What are the early learnings from the digital menu boards? - Digital menu boards have shown significant increases in sales for promoted items, indicating a strong return on investment [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 January 3, 2023 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) (IR ...

Noodles & Company (NASDAQ:NDLS) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET Company Participants Carl Lukach - Chief Financial Officer Dave Boennighausen - Chief Executive Officer Conference Call Participants Nicole Miller Regan - Piper Sandler Andrew Strelzik - BMO Capital Markets Joshua Long - Stephens Operator Good afternoon and welcome to today’s Noodles & Company’s Third Quarter 2022 Earnings Conference Call. All participants are now in a listen-only mode. After the speakers' presentat ...

Noodles & Company. (NASDAQ:NDLS) Q2 2022 Earnings Conference Call July 27, 2022 4:30 PM ET Company Participants Carl Lukach - Chief Financial Officer Dave Boennighausen - Chief Executive Officer Conference Call Participants Nicole Miller Regan - Piper Sandler Andrew Barish - Jefferies Todd Brooks - The Benchmark Company Andrew Strelzik - BMO Capital Markets Jake Bartlett - Truist Operator Good afternoon and welcome to today’s Noodles & Company’s Second Quarter 2022 Earnings Conference Call. All participants ...