NDLS

Management Insights: Noodles & Company reported a 4% increase in comparable sales for Q3 2025, accelerating to 8% in October, driven by successful menu rollouts and enhanced marketing. The company is strategically closing underperforming locations while aiming to retain 30% of sales through nearby units.

Financial Performance: Total revenue for Q3 decreased by 0.5% to $122.1 million, with restaurant contribution margins improving to 13.2%. Despite a net loss of $9.2 million, adjusted EBITDA rose by 33% to $6.5 million, reflecting operational improvements.

Updated Outlook: The company raised its full-year 2025 revenue guidance to between $492 million and $495 million, with projected comparable restaurant sales growth of 3.6% to 4.2%. Management emphasized a focus on operational execution and cost management to enhance profitability.

Analyst Sentiment: Analysts expressed optimism regarding Noodles & Company's recent sales momentum and operational improvements, contrasting with previous concerns over value perception. Management maintained a confident tone, highlighting the effectiveness of new initiatives and the potential for sustained growth despite a challenging consumer environment.

Earnings Report Overview: Noodles & Company is set to report earnings, with analysts expecting a 2.4% revenue decline year-on-year to $119.8 million and an adjusted loss of -$0.11 per share.

Recent Performance Context: The company missed revenue expectations last quarter and has only missed Wall Street's estimates once since going public, averaging a -1.8% miss on top-line expectations.

Peer Comparisons: Competitors like Shake Shack and Chipotle have reported positive revenue growth, with Shake Shack up 15.9% and Chipotle up 7.5%, while the overall restaurant sector has underperformed recently.

Market Sentiment and Stock Performance: Despite broader market challenges, Noodles' stock has risen 11% in the last month, with an average analyst price target of $2 compared to its current price of $0.71.

Noodle Preference Over Pizza: A survey reveals that 70% of people prefer noodles over pizza during the holidays, with Noodles & Company promoting their noodle dishes as a comforting alternative for holiday gatherings.

Catering Options and Promotions: Noodles & Company offers catering options and limited-time promotions, including discounts on catering pans and gift card bonuses, to make holiday hosting easier and more enjoyable.

Social Media Giveaway: The brand is hosting a giveaway on Instagram from November 17 to 24, where participants can win one of 100 free catering pans, encouraging people to choose noodles over traditional pizza parties.

Noodles Rewards Program: New members of the Noodles Rewards program receive a free entrée after their first purchase and can earn points for future rewards, enhancing customer engagement and loyalty.