Noodles & Company Announces First Quarter 2025 Financial Results

Core Insights - Noodles & Company reported a net loss of $9.1 million for Q1 2025, compared to a net loss of $6.1 million in Q1 2024, indicating a decline in profitability despite a slight increase in total revenue [6][21][22] - The company experienced a 2.0% increase in total revenue, reaching $123.8 million, driven by a 4.4% increase in comparable restaurant sales [6][21] - The CEO highlighted the positive impact of a newly reimagined menu and increased marketing efforts, which contributed to a 5% rise in comparable sales since its launch [3][6] Financial Performance - Total revenue increased from $121.4 million in Q1 2024 to $123.8 million in Q1 2025, marking a 2.0% growth [6][21] - Comparable restaurant sales rose by 4.4%, with company-owned restaurants seeing a 4.7% increase and franchise restaurants a 2.9% increase [6][21] - The adjusted EBITDA for Q1 2025 was $2.4 million, down from $5.5 million in Q1 2024 [6][21][27] Operational Metrics - The restaurant contribution margin decreased to 10.3% in Q1 2025 from 13.1% in Q1 2024, reflecting increased operating costs [6][36][39] - Operating margin for Q1 2025 was reported at (5.2)%, compared to (3.4)% in Q1 2024 [6][21] - The company opened one new company-owned restaurant during the quarter [6] Liquidity and Debt - As of April 1, 2025, the company had cash and cash equivalents of $1.4 million and outstanding debt of $102.7 million [4] - The available amount for future borrowings under its revolving credit facility was $19.3 million [4] Business Outlook - The company revised its guidance for 2025, expecting restaurant level contribution margins to be between 12.0% and 14.0%, down from a previous range of 12.5% to 14% [5][7] - The company anticipates general and administrative expenses to be between $49 million and $52 million, including stock-based compensation of approximately $3.7 million [7]