Noodles & Company Stock Earnings Reports

Noodles & Company reported improving top-line momentum and margin progress in Q3 2025. Comparable restaurant sales rose 4.0% in Q3 (company-owned +4.0%, franchise +4.3%) with sequential monthly improvement (July +1.6%, Aug +4.5%, Sep +5.5%) and October comp sales accelerating to +8% with traffic up ~1.5%. Digital/third-party delivery growth and increased engagement in the NoodlesREWARDS program are meaningful drivers. The Delicious Duos value platform (mix ~4–5%) and a successful Chili Garlic Ramen LTO contributed to trial, traffic and younger-guest appeal. Company initiatives include a targeted program to close underperforming restaurants (29 closed through October; 31–34 planned by year-end), an operations coaching program, and a cost-savings plan expected to deliver >$5M in 2025. Financially, total revenue was $122.1M in Q3 (down 0.5% YoY), adjusted EBITDA improved ~33% to $6.5M, restaurant contribution margin expanded to 13.2% (from 12.8%), but net loss widened to $9.2M due in part to a $5.3M noncash impairment charge. Balance sheet: $4.7M cash, $109.8M debt with ~$12M available on the revolver. Full-year 2025 guidance was narrowed to: revenue $492–495M, comp restaurant sales +3.6% to +4.2%, restaurant contribution margin 12.3%–12.7%, G&A $48–49M, D&A $28–29M, interest ~ $11M, and capex $12–13M. The Board is also conducting a strategic review of alternatives to maximize shareholder value.