Noodles & Company Earnings Call Transcripts
Fiscal Year 2026
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System-wide comp sales grew over 9% in Q1 2026, with adjusted EBITDA more than tripling year-over-year. Restaurant closures and menu innovation drove higher margins and profitability, leading to raised full-year guidance and continued debt reduction.
Fiscal Year 2025
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Comparable sales and margins improved sharply in Q4 2025, with momentum accelerating into Q1 2026. Restaurant closures and menu innovation drove profitability, and 2026 guidance calls for further margin and EBITDA growth.
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Q3 saw 4% comp sales growth and margin improvement, with digital and value platforms driving momentum. Restaurant closures and cost controls boosted adjusted EBITDA by 33%, and full-year guidance was raised. Strategic review and operational initiatives aim to sustain growth.
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Second quarter revenue declined slightly year-over-year, with positive same-store sales but lower than expected due to value perception issues after a menu change. Leadership transition and a new value platform were announced, and full-year guidance was revised downward.
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Q1 saw strong same-store sales growth and improved traffic, driven by a major menu transformation and increased marketing. Despite higher costs and a net loss, guidance for 2025 remains positive, with free cash flow expected in the second half.
Fiscal Year 2024
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Q4 2024 saw improved sales trends and a major menu transformation, though revenue declined 2% and margins compressed. 2025 guidance projects mid-single-digit comp sales growth, margin investment in food quality, and lower capex, with debt reduction expected in the second half.
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Q3 revenue declined 4% year-over-year, with comp sales down 3.3% and a net loss of $6.8 million. Menu innovation and targeted promotions improved Q4 trends, while capital expenditures and restaurant openings are being reduced to support a return to positive free cash flow in 2025.
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Q2 2024 saw 2% same-store sales growth and improved margins, but net loss widened due to a $10.9M impairment. Menu innovation, digital engagement, and cost controls are driving progress, with cautious full-year guidance reflecting a tough consumer environment.