Core Insights - Noodles & Company is reintroducing its popular Steak Stroganoff dish for a limited time due to high demand from fans [1][2] - The return of Steak Stroganoff is celebrated through AI-powered mini-dramas that highlight fan engagement and emotional connections to the dish [2][3] Product Details - The Steak Stroganoff features wavy egg noodles in a mushroom-sherry cream sauce, marinated steak, Parmesan cheese, and fresh Italian parsley, creating a comforting flavor profile [1] - The dish is positioned as a nostalgic favorite, particularly appealing during colder weather [3] Marketing Strategy - The company is leveraging social media by transforming fan posts into dramatic reenactments, showcasing the emotional significance of the dish to its customers [2][3] - A casting call for the first-ever Chief StroganOff-icer will take place from February 10 to February 25, inviting fans to demonstrate their passion for the dish [4] Engagement Initiatives - Fans can participate by posting dramatic monologues about Steak Stroganoff on Instagram, with the winning entry being featured in an AI mini-drama [5][6] - The winner will receive a gift card for a free bowl of Steak Stroganoff every week in 2026, along with exclusive merchandise [6] Loyalty Program - New members of the Noodles Rewards program receive a free regular entrée after their first purchase of $10 or more, enhancing customer engagement and loyalty [7] - Members earn points on orders, gaining access to new menu items and exclusive offers [7] Company Background - Noodles & Company has been serving globally inspired noodle dishes since 1995, with over 445 locations and a focus on flavor and customer experience [8][9]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 decreased by 2% year-over-year to $121.8 million [30] - System-wide comparable restaurant sales increased by 0.8%, with a 0.5% increase at company-owned restaurants and a 1.9% increase at franchise restaurants [30] - Net loss for Q4 was $9.7 million, or a loss of $0.21 per diluted share, compared to a net loss of $6.1 million, or a loss of $0.14 per diluted share in the previous year [33] Business Line Data and Key Metrics Changes - Company comparable traffic decreased by 0.1%, while average check increased by 0.6% with effective pricing of 1.3% during the quarter [30] - Restaurant-level contribution margin was 11.2%, down from 14.7% in Q4 2023 [33] - G&A expenses for Q4 were $11.3 million, down from $13.9 million in 2023, primarily due to lower severance and executive transition costs [33] Market Data and Key Metrics Changes - The company experienced a significant improvement in guest satisfaction, achieving the largest single-month increase in January, reducing the gap to the fast-casual industry average by nearly 80% over the past twelve months [11] - The company reported double-digit traffic growth in the third-party delivery channel, driven by a revised pricing and promotion strategy [13] Company Strategy and Development Direction - The company is focusing on operational excellence, menu transformation, and enhancing guest experience as part of its five strategic priorities [9][10] - A significant menu transformation is planned, with nearly two-thirds of the menu being new or reimagined, representing the largest culinary change in the company's history [16] - The new brand strategy, "We Know Noodles," aims to enhance brand relevance and customer engagement through a comprehensive marketing plan [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sales trends, noting that the improvements seen in Q4 2024 have accelerated into Q1 2025, with comp sales growth over 3% [9][36] - The company anticipates total revenue for 2025 to be between $503 million and $512 million, with mid-single-digit comp restaurant sales growth expected [37] Other Important Information - The company closed six company-owned restaurants in Q4 and plans to close 12 to 15 company-owned and four franchise restaurants in 2025 [34][38] - Joe Cristina was announced as the new President and Chief Operating Officer, succeeding Brad West [28] Q&A Session Summary Question: Areas of improvement in guest satisfaction scores - Management noted significant improvements in overall satisfaction, taste of food, and accuracy, which are directly related to driving traffic growth [45][46] Question: Same-store sales expectations for the current quarter - Management indicated that the first quarter is tracking over 3%, with expectations for mid-single-digit growth primarily in Q3 and Q4 due to tougher comps in Q2 [47][49] Question: Impact of weather on sales trends - Management clarified that the 3% growth is sustainable and not solely impacted by weather, with non-weather weeks reflecting similar performance [55] Question: Margin impact from menu rollout - Management confirmed a 100 basis point investment in food costs related to the menu rollout, with expectations of achieving flat to growing margins year-over-year despite this investment [61][63]