Noodles & Company Announces Third Quarter 2025 Financial Results

Core Insights - Noodles & Company reported a 4% increase in comparable restaurant sales for Q3 2025, outperforming the fast casual benchmark, with October sales accelerating to an 8% increase [3][6] - The company experienced a net loss of $9.2 million in Q3 2025, compared to a net loss of $6.8 million in Q3 2024, largely due to $5.3 million in pre-tax restaurant impairments [6][24] - Adjusted EBITDA rose by 32.7% to $6.5 million in Q3 2025, up from $4.9 million in the same quarter of the previous year [6][26] Financial Performance - Total revenue for Q3 2025 decreased by 0.5% to $122.1 million from $122.8 million in Q3 2024 [6][21] - Restaurant contribution margin improved to 13.2% in Q3 2025 from 12.8% in Q3 2024, indicating better restaurant-level productivity [6][36] - Operating margin was reported at (5.2)% for Q3 2025, compared to (3.9)% in Q3 2024 [6][21] Liquidity and Debt - As of September 30, 2025, the company had cash and cash equivalents of $4.7 million and outstanding debt of $109.8 million [4] - The available amount for future borrowings under its revolving credit facility was $12.2 million [4] Business Outlook - The company revised its guidance for fiscal year 2025, expecting total revenue between $492 million and $495 million, with comparable restaurant sales growth projected at 3.6% to 4.2% [7] - The company plans to close 31 to 34 company-owned restaurants and 7 to 8 franchise restaurants, while opening two new company-owned locations [7] Strategic Review - On September 3, 2025, the Board of Directors initiated a review of strategic alternatives to maximize stockholder value, which may include refinancing, refranchising, or selling parts of the business [8]