Core Insights - Noodles & Company has reported sequential improvements in same-store sales and traffic for the quarter ending September 30, driven by operational enhancements and the introduction of a new value menu [1][2] Sales Performance - For Q3, same-store sales increased by 4%, with a notable rise from 1.6% in July to 4.5% in August and 5.5% in September, continuing into October with an 8% growth [2] - Average unit volumes rose by 5.4% to $1.34 million, while average checks increased by 4.6%, which included a 2% price hike [6] Menu Innovations - The launch of the Delicious Duos value platform on July 30, offering a small entrée with a side starting at $9.99, contributed to the sales growth [3] - The introduction of the Chili Garlic Ramen as a limited-time offer at $8.95 in October also played a significant role in boosting sales [3][4] Digital Sales - Digital sales experienced a 12% increase, primarily driven by third-party delivery services, highlighting the importance of digital channels for growth [5][6] Financial Results - Despite the sales improvements, the company reported a net loss of $9.2 million, or 20 cents per share, compared to a loss of $6.8 million, or 15 cents per share, in Q3 of 2024 [7]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 decreased by 0.5% year-over-year to $122.1 million [15] - Comparable sales grew by 4% in Q3, with an increase of 8% in October [5][16] - Average check increased by 4.6%, including a 2% effective pricing during the quarter [16] - Net loss for Q3 was $9.2 million, or a loss of $0.20 per diluted share, compared to a net loss of $6.8 million, or a loss of $0.15 per diluted share last year [18] - Adjusted EBITDA improved by $1.6 million, or approximately 33%, to $6.5 million [11][18] Business Line Data and Key Metrics Changes - Digital sales channel saw a meaningful year-over-year improvement, driven largely by third-party delivery, which increased by 12% [6] - Restaurant contribution margins improved by 40 basis points to 13.2% from 12.8% in Q3 2024 [16][18] - COGS as a percentage of sales was 25.7%, a 20 basis point increase from last year [17] Market Data and Key Metrics Changes - Company comp traffic decreased slightly by 0.6% in Q3, but was positive in the second half of the quarter [16] - Year-over-year traffic was positive over 1.5% quarter-to-date, extending a positive traffic trend that began midway through Q3 [9] Company Strategy and Development Direction - The company is focusing on closing underperforming restaurants to improve overall sales leverage and enhance profitability [10][20] - The introduction of the Delicious Duos platform is aimed at providing value while maintaining brand equity and profitability [7] - The company is executing a comprehensive cost-savings plan expected to deliver over $5 million in savings across its P&L in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the path ahead, citing strong sales trends and the success of recent initiatives [4][6] - The company anticipates continued strength in sales and margins, particularly as it laps over a period of heavy promotions and discounts from the previous year [9][21] - Management is optimistic about the impact of restaurant closures on future profitability, expecting a positive contribution of over $2 million in 2026 [20][21] Other Important Information - The board of directors has initiated a review of strategic alternatives to explore ways to maximize shareholder value [15] - The company plans to introduce new menu items, including a collaboration with a popular candy bar, in December [13] Q&A Session Summary Question: Can you discuss the success of the Delicious Duos and its impact on value perception? - Management noted that Delicious Duos filled a value void and is mixing around 4-5% across restaurants, with positive value scores from guests [23][24] Question: How does the company account for organic traffic versus sales transfer from closed stores? - Management indicated that closures have contributed about a 1% lift in sales, with positive traffic outside of sales transfer [25] Question: What are the learnings from the Ramen limited-time offer (LTO)? - Management is encouraged by the trial and repeat business from the Ramen LTO and sees potential for it to be a permanent menu item [26][27]

Company Overview - Scott Davis has left Noodles & Company after 16 months as chief concept officer to join Tatte Bakery & Cafe as senior vice president of menu innovation [1][2] - Noodles & Company is currently evaluating its long-term strategic direction following Davis's departure [3] Leadership Changes - Drew Madsen, who was appointed as permanent CEO in March, left Noodles & Company at the end of August for personal health reasons [4] - Joseph Christina, former CEO of Tijuana Flats, has taken over as the new CEO [4] Operational Improvements - Noodles & Company has been working on improving operations through technology upgrades, including digital menu boards and enhanced training [5] - A new menu was rolled out in March, which has been adjusted to address consumer price sensitivity, introducing a "Delicious Duos" combo meal starting at $9.95 [5] Financial Strategy - The company has hired Piper Sandler to explore "strategic alternatives" to maximize shareholder value, including the potential sale of the company [6] - Noodles & Company is at risk of delisting from Nasdaq due to a low share price of less than $1, which is out of compliance with exchange rules [6] - The company has considered a reverse stock split to regain compliance with Nasdaq [7]

Core Insights - Noodles & Company has initiated a review of strategic alternatives to maximize shareholder value, which may include refinancing, refranchising, or selling parts of the business [1][2][3] - The company reported a positive comparable restaurant sales performance of 4.5% in August, attributed to its menu transformation initiatives [2] Strategic Review - The Board of Directors is exploring various strategic options without a set deadline for completion, indicating that no specific outcome is guaranteed [2] - Piper Sandler has been retained as the financial advisor to assist in the strategic review process [3] Business Performance - The company emphasizes its focus on optimizing its menu transformation and enhancing its value proposition through initiatives like the Delicious Duos platform, which starts at $9.95 [2][5] - Noodles & Company operates approximately 450 restaurants and employs around 7,000 team members, highlighting its scale and commitment to customer satisfaction [5]

Core Insights - Noodles & Company is launching a new menu item called Delicious Duos, which combines a small entrée with a protein and a side, starting at $9.95, aimed at providing value and variety for customers [1][2][4] Group 1: Product Offering - Delicious Duos allows customers to mix and match popular dishes such as Rigatoni Rosa with Parmesan Chicken and Pulled Pork BBQ Mac & Cheese, enhancing meal customization [3] - The sides included in Delicious Duos are designed to complement the main entrée, with options like Lemon Parmesan Broccoli, Small Caesar Salad, Small Garden Salad, and Cup of Chicken Noodle Soup [9] Group 2: Customer Insights - A survey by Pollfish indicates that nearly 50% of respondents prefer a small entrée with a side, and over 75% prioritize price and value when dining out, which aligns with the offering of Delicious Duos [2][10] - The new menu item is positioned to cater to various dining occasions, whether for lunch or dinner, providing perfectly portioned meals that fit into customers' daily routines [4] Group 3: Marketing and Promotions - To celebrate the launch of Delicious Duos, Noodles & Company is hosting a "Dress as a Duo Day" on August 16, offering a Buy One, Get One 50% Off promotion for customers who participate [5][6] - The company encourages social media engagement by inviting customers to share their Duo-inspired looks for a chance to win a gift card [6] Group 4: Loyalty Program - Noodles Rewards program offers customers additional benefits, including points for every dollar spent, exclusive offers, and a free entrée after a first purchase of $10 or more [7] Group 5: Company Background - Noodles & Company has been in operation since 1995, focusing on a diverse menu that includes noodles, soups, salads, and sides, with over 460 locations [8][10] - The company has received multiple accolades, including recognition for its loyalty program and workplace diversity, highlighting its commitment to quality and customer satisfaction [8][10]