Noodles & Company ( (NDLS) ) has released its Q1 earnings. Here is a breakdown of the information Noodles & Company presented to its investors.
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Noodles & Company is a restaurant chain specializing in noodle-based dishes, offering a diverse menu that includes both comfort and globally inspired flavors, operating primarily in the fast-casual dining sector.
In its first quarter of 2025, Noodles & Company reported a modest revenue increase of 2.0% to $123.8 million compared to the same period in 2024, despite facing a challenging economic environment. The company also highlighted a 4.4% increase in comparable restaurant sales system-wide, driven by a new menu launch and enhanced marketing efforts.
Key financial metrics revealed a net loss of $9.1 million, an increase from the $6.1 million loss in the previous year, and a decrease in operating margin to -5.2%. The restaurant contribution margin also saw a decline to 10.3% from 13.1% in the prior year. Despite these challenges, the company opened one new restaurant and maintained positive sales momentum.
Looking ahead, Noodles & Company remains optimistic about its growth prospects, focusing on a new brand strategy and menu to drive demand. The company plans to continue its cost-saving initiatives and reduce capital spending, aiming to strengthen its financial position and capitalize on future growth opportunities.