Financial Data and Key Metrics Changes - Total revenue for Q1 2022 increased by 2.7% to $112.6 million compared to the previous year [17] - Comparable restaurant sales increased by 6.4% system-wide, with a 5.3% increase at company-owned restaurants and an 11.9% increase at franchise restaurants [18] - Average unit volumes (AUV) for the quarter were $1.25 million, a 6.8% increase from last year and a 13.3% increase versus pre-COVID levels in 2019 [19] - GAAP net loss for Q1 was $6.4 million or $0.14 per diluted share, compared to a net loss of $2 million or $0.04 per diluted share last year [26] Business Line Data and Key Metrics Changes - The company opened seven new restaurants in Q1, the largest number of new openings in a quarter since 2016 [7] - New restaurants are exceeding internal projections and performing well above company averages [8] - The company anticipates achieving a 30% plus cash-on-cash return on new locations [8] Market Data and Key Metrics Changes - The company expects nearly 40% of its restaurants to meet the long-term target of $1.5 million AUV during Q2 [9] - Digital sales accounted for 58% of total sales during Q1 [13] Company Strategy and Development Direction - The company aims to accelerate growth with a target of at least 1,500 units nationwide [9] - Focus on increasing the franchise mix, with a recent agreement for 40 new yield locations in California [10] - Introduction of new menu items like Leanguini, which is expected to significantly expand reach and encourage repeat visits [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities ahead, despite inflationary pressures [10] - The company has seen improvements in staffing and operational efficiencies, resulting in reduced cook times and increased sales per labor hour [15] - Management expects continued strength in average unit volume growth throughout Q2 [27] Other Important Information - The company implemented a temporary $1 surcharge on chicken menu prices due to rising costs [22] - Total inflation in Q1 was around 20%, with chicken prices being a significant contributor [42] Q&A Session Summary Question: Can you clarify the cadence of same-store sales? - Management believes there is sequential improvement, with same-store sales accelerating from 11%-12% in early Q1 to 15% in March and 18% in April [32] Question: What impact do you expect from the new Leanguini product? - Management anticipates Leanguini will have a meaningful impact, similar to previous successful launches, with strong guest response metrics [36][37] Question: What drove the lower end of the COGS guidance range? - Stabilization in non-protein COGS and the ability to secure shorter-term pricing contracts contributed to the lower end of the guidance [39] Question: How is the company addressing inflationary pressures? - The company is implementing a $1 surcharge on chicken and anticipates a 10% price increase in Q2, including the surcharge [73] Question: What is the margin profile for restaurants achieving high AUVs? - The majority of these restaurants are expected to have margins above 20%, with improvements as chicken prices normalize [46]

Noodles & Company (NASDAQ:NDLS) Q4 2021 Earnings Conference Call February 23, 2022 4:30 PM ET Company Participants Carl Lukach - Chief Financial Officer Dave Boennighausen - Chief Executive Officer Conference Call Participants Jack Corrigan - Truist Securities Andrew Strelzik - BMO Capital Markets Andy Barish - Jefferies James Rutherford - Stephens, Inc. Nicole Miller - Piper Sandler Todd Brooks - The Benchmark Company Operator Good afternoon and welcome to today’s Noodles & Company’s Fourth Quarter 2021 Ea ...

Noodles & Company (NASDAQ:NDLS) Q3 2021 Earnings Conference Call October 27, 2021 4:30 PM ET Company Participants Dave Boennighausen - CEO Carl Lukach - CFO Conference Call Participants James Rutherford - Stephens Inc. Jack Corrigan - Truist Securities Nicole Miller - Piper Sandler Andrew Strelzik - BMO Todd Brooks - C.L. King and Associates Operator Good afternoon and welcome to today’s Noodles & Company Third Quarter 2021 Earnings Conference Call. All participants are now in a listen-only mode. After the ...

Noodles & Company (NASDAQ:NDLS) Q2 2021 Earnings Conference Call August 3, 2021 12:00 PM ET Company Participants Carl Lukach - CFO Dave Boennighausen - CEO Conference Call Participants Jake Bartlett - Truist Securities Nicole Miller - Piper Sandler Andrew Strelzik - BMO Capital Markets Todd Brooks - CL King & Associates Operator Good afternoon and welcome to today's Noodles & Company's Second Quarter 2021 Earnings Conference Call. [Operator Instructions] I would now like to introduce Noodles & Company's Chi ...

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)