Noodles & pany(NDLS) - 2026 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2025 was $122.1 million, a decrease of 0.5% from $122.8 million in Q3 2024[5] - Net loss for Q3 2025 was $9.2 million, or $0.20 loss per diluted share, compared to a net loss of $6.8 million, or $0.15 loss per diluted share in Q3 2024[5] - Adjusted EBITDA increased by 32.7% to $6.5 million in Q3 2025, up from $4.9 million in Q3 2024[5] - Total revenue for the fiscal quarter ended September 30, 2025, was $122.086 million, a slight decrease of 0.5% compared to $122.751 million for the same period in 2024[22] - Net loss for the quarter was $9.151 million, compared to a net loss of $6.755 million in the same quarter of the previous year, representing an increase in loss of 35.5%[22] - Adjusted EBITDA for the quarter was $6.498 million, an increase from $4.896 million in the same quarter of 2024, indicating a growth of 32.7%[26] - The company reported a total loss from operations of $(27,484) million for the three fiscal quarters ended September 30, 2025, compared to $(20,414) million in the same period of 2024, highlighting ongoing challenges[36] Operational Metrics - Comparable sales increased by 4% in Q3 2025, outperforming the fast casual benchmark, with October showing an 8% increase[3] - Restaurant contribution margin improved to 13.2% in Q3 2025, compared to 12.8% in Q3 2024[5] - Company-owned average unit volume for the quarter was $1,341, a decrease from $1,353 in the previous quarter, reflecting a decline of 0.9%[24] - Franchise average unit volume was $1,311, down from $1,327 in the previous quarter, showing a decrease of 1.2%[24] - Company-owned comparable restaurant sales increased by 4.0% compared to a 1.5% increase in the same quarter of the previous year[24] - Restaurant contribution for the fiscal quarter ended September 30, 2025, was $15,737 million, up from $15,408 million in the prior year, reflecting a year-over-year increase[36] - The restaurant contribution margin for the three fiscal quarters ended September 30, 2025, was 12.1%, down from 13.8% in the previous year, indicating a decline in profitability[36] - Management emphasizes that restaurant contribution and margin are important metrics for evaluating restaurant-level productivity and performance, despite being non-GAAP measures[37] Future Guidance and Strategic Plans - Total revenue guidance for fiscal year 2025 is projected to be between $492 million and $495 million, with comparable restaurant sales growth expected between 3.6% and 4.2%[6] - The company plans to close 31 to 34 company-owned restaurants and 7 to 8 franchise restaurants[13] - A strategic review is underway to explore alternatives for maximizing stockholder value, including refinancing and potential refranchising[7] Financial Position - The company has $4.7 million in cash and cash equivalents and $109.8 million in outstanding debt as of September 30, 2025[4] - Total current assets as of September 30, 2025, were $23.819 million, up from $20.192 million as of December 31, 2024, representing an increase of 12.9%[24] - Total liabilities decreased to $319.471 million from $330.227 million year-over-year, a reduction of 3.3%[24] - General and administrative expenses are expected to be between $48 million and $49 million for the fiscal year 2025[6] - General and administrative expenses for the three fiscal quarters ended September 30, 2025, were $37,486 million, down from $39,503 million in the prior year, reflecting cost management efforts[36] Costs and Expenses - Loss from operations for the fiscal quarter ended September 30, 2025, was $(6,319) million, compared to $(4,800) million for the same period in 2024, indicating a deterioration in operational performance[36] - Total depreciation and amortization expenses for the three fiscal quarters ended September 30, 2025, were $20,833 million, slightly down from $21,985 million in the previous year[36] - Restaurant impairments, closure costs, and asset disposals totaled $5,681 million for the quarter ended September 30, 2025, compared to $2,202 million in the same quarter of 2024, showing increased costs related to restaurant operations[36] - Franchising royalties and fees for the three fiscal quarters ended September 30, 2025, were $7,627 million, consistent with $7,600 million in the previous year, indicating stable franchise performance[36]