Noodles & Company Announces Second Quarter 2025 Financial Results

Core Insights - Noodles & Company reported a net loss of $17.6 million for Q2 2025, compared to a net loss of $13.6 million in Q2 2024, indicating a decline in profitability [5][21][26] - Comparable restaurant sales increased by 1.5% system-wide, with a 1.5% increase at company-owned restaurants and a 1.6% increase at franchise restaurants [5][24] - The company is optimistic about future growth under new CEO Joe Christina, who is expected to enhance the brand's value perception and drive sustainable growth [3] Financial Performance - Total revenue for Q2 2025 decreased by 0.7% to $126.4 million from $127.4 million in Q2 2024 [5][21] - Adjusted EBITDA for Q2 2025 was $6.0 million, down from $9.2 million in Q2 2024 [5][26] - Operating margin for Q2 2025 was -11.7%, compared to -9.0% in Q2 2024 [5][21] Liquidity and Debt - As of July 1, 2025, the company had available cash and cash equivalents of $2.3 million and outstanding debt of $108.3 million [4] - The amount available for future borrowings under its revolving credit facility was $13.7 million [4] Business Outlook - The company revised its guidance for fiscal year 2025, expecting total revenue between $487 million and $495 million, with comparable restaurant sales growth of 2.5% to 4.0% [6] - The company plans to open two new company-owned restaurants while closing 28 to 32 company-owned restaurants [6][7] Restaurant Activity - As of July 1, 2025, the company operated 364 company-owned restaurants, down from 369 at the end of Q1 2025 [23] - Franchise restaurants at the end of the period totaled 89, a decrease from 91 [23]