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Noodles & Co. (NDLS)
NASDAQ:NDLS
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Noodles & Co
(NASDAQ:NDLS)
Rating:41Neutral
Price Target:
$0.50
▼(-25.37% Downside)
Positive Factors
Customer Engagement
Steve Kennedy, recently hired as Noodles CMO, has expanded the platforms for customer messaging, contributing to a double-digit increase in brand awareness, brand search traffic, and app sessions.
Loyalty Program
The Noodles Rewards loyalty program has seen significant increases in both loyalty sign-up rates and loyalty transactions since the new menu launch.
Negative Factors
Cash Flow Guidance
Management no longer anticipates positive free cash flow in FY25 based on revised guidance.
Financial Performance
Revenues were below consensus expectations, indicating challenges in aligning with consumer demand.
Noodles & Co (NDLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.04M
Dividend YieldN/A
Average Volume (3M)195.72K
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth-1.23%
EPS Growth-68.38%
CountryUS
Employees7,300
SectorConsumer Cyclical
Sector Strength83
IndustryRestaurants
Share Statistics
EPS (TTM)-0.12
Shares Outstanding46,441,544
10 Day Avg. Volume163,367
30 Day Avg. Volume195,721
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap9.84
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit3.27
Enterprise Value/Ebitda-245.78
Forecast
1Y Price Target
$1.25Price Target Upside86.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Noodles & Co Business Overview & Revenue Model
Company DescriptionNoodles & Company, a restaurant concept company, develops and operates fast-casual restaurants. It offers cooked-to-order dishes, including noodles and pasta, soups, salads, and appetizers. As of December 28, 2021, the company operated 448 restaurants in 29 states, which included 372 company locations and 76 franchise locations. Noodles & Company was founded in 1995 and is based in Broomfield, Colorado.
How the Company Makes MoneyNoodles & Company primarily generates revenue through the sale of its food and beverage offerings in its restaurants. The company's revenue model includes dine-in, takeout, and delivery services, allowing it to cater to different customer preferences. Key revenue streams include the sale of noodle dishes, salads, and other menu items, with a focus on upselling drinks and desserts. Additionally, Noodles & Company has embraced digital ordering through its mobile app and website, which has increased convenience and sales. The company may also benefit from strategic partnerships with delivery platforms, which can enhance its reach and sales volume. Promotions and loyalty programs further drive repeat business, contributing to consistent revenue growth.
Noodles & Co Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of positive and negative developments. While there was growth in same-store sales and improvement in digital engagement, the company faced challenges with decreased revenue, increased costs, and significant net losses. Operational adjustments and the recent launch of the Delicious Duos platform have shown promise in improving sales trends, but the financial outlook remains cautious with a revised guidance.Q2-2025 Updates
Positive Updates
Positive Same-Store Sales Growth
Same-store sales increased by 1.5% overall, with company-owned restaurants seeing a 1.5% increase and franchise restaurants a 1.6% increase.
Improvement in Recent Sales Trends
Same-store sales improved to an average of 5% over the last two weeks following the launch of the Delicious Duos value platform.
Successful Digital Engagement
Owned digital web and app platforms saw traffic increase by 2% year-over-year, and rewards member check-ins increased by 4% year-over-year.
Operational Adjustments and Efficiency
Improvements in operational execution, such as eliminating the Green Goddess salad and refining recipes, have been implemented to reduce food costs and improve guest satisfaction.
Negative Updates
Revenue Decline
Total revenue decreased by 0.7% compared to last year, totaling $126.4 million for the quarter.
Decreased Traffic and Increased Costs
Company comp traffic decreased by 2.5%, and costs increased due to higher food and labor expenses related to the new menu rollout.
Net Loss and Profitability Challenges
Net loss for the second quarter was $17.6 million, a greater loss compared to $13.6 million last year. Adjusted EBITDA decreased to $6 million from $9.2 million last year.
Restaurant Closures and Impairment Charges
A total of 28 to 32 company-owned restaurants are expected to close in 2025, with impairment charges impacting overall financial performance.
Revised Full Year Guidance
The company revised its full-year 2025 guidance, no longer expecting to be free cash flow positive.
Company Guidance
During Noodles & Company's second quarter 2025 earnings call, guidance was revised to reflect recent trends, projecting total revenue between $487 million and $495 million with comparable restaurant sales growth of 2.5% to 4%. The company aims for a restaurant contribution margin of 11.8% to 12.6% and general and administrative expenses ranging from $48 million to $50 million. Depreciation and amortization expense is expected to be between $27 million and $29 million, while interest expense is anticipated to range from $10.5 million to $11.5 million. Capital expenditures are projected to be $12 million to $13 million. Despite challenges, the company is not expected to be free cash flow positive in 2025 but is targeting this achievement in 2026.Noodles & Co Financial Statement Overview
Summary
Noodles & Co is facing significant financial challenges, including negative profitability, declining revenues, and a leveraged balance sheet with negative equity. While there is some ability to generate operating cash flow, the overall financial health is weak, posing substantial risks.Income Statement
The company's income statement shows weak profitability with negative net income and EBIT margins in the TTM (Trailing-Twelve-Months). Revenue has declined slightly compared to the previous year, indicating difficulty in maintaining top-line growth. The gross profit margin has dropped significantly, reflecting increased cost pressures or pricing challenges.45
Neutral
Balance Sheet
The balance sheet reveals a concerning financial position, with negative stockholders' equity indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, and the company's high total debt suggests a leveraged position. These factors pose significant risks to financial stability.30
Negative
Cash Flow
Cash flow analysis indicates struggles with cash generation, as free cash flow remains negative, though less negative compared to previous periods. The operating cash flow to net income ratio is positive, showing some ability to generate cash from core operations, but the overall cash flow situation remains weak.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 495.67M | 493.27M | 503.40M | 509.48M | 475.15M | 393.65M |
| Gross Profit | 96.55M | 168.96M | 84.21M | 80.17M | 82.08M | 51.54M |
| EBITDA | -1.28M | 1.29M | 21.76M | 22.44M | 28.15M | 1.68M |
| Net Income | -39.13M | -36.21M | -9.86M | -3.31M | 3.67M | -23.26M |
Balance Sheet | ||||||
| Total Assets | 319.45M | 324.65M | 368.10M | 343.84M | 341.46M | 353.63M |
| Cash, Cash Equivalents and Short-Term Investments | 1.40M | 1.15M | 3.01M | 1.52M | 2.25M | 7.84M |
| Total Debt | 290.22M | 293.51M | 300.41M | 267.68M | 249.78M | 280.42M |
| Total Liabilities | 333.36M | 330.23M | 340.94M | 305.48M | 303.83M | 323.93M |
| Stockholders Equity | -13.90M | -5.58M | 27.16M | 38.36M | 37.63M | 29.70M |
Cash Flow | ||||||
| Free Cash Flow | -18.45M | -21.21M | -24.55M | -24.33M | 17.39M | -2.66M |
| Operating Cash Flow | 4.59M | 7.56M | 27.50M | 9.56M | 36.16M | 9.12M |
| Investing Cash Flow | -20.98M | -26.71M | -51.80M | -32.31M | -18.37M | -10.95M |
| Financing Cash Flow | 16.46M | 17.29M | 25.80M | 22.02M | -23.38M | -798.00K |
Noodles & Co Technical Analysis
Negative
0.67
Price Trends
0.82
Negative
0.84
Negative
0.94
Negative
Market Momentum
-0.05
Positive
38.99
Neutral
18.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDLS, the sentiment is Negative. The current price of 0.67 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.82, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 18.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NDLS.
Noodles & Co Risk Analysis
Noodles & Co disclosed 37 risk factors in its most recent earnings report. Noodles & Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Noodles & Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $47.47M | 18.34 | 21.75% | ― | 2.93% | 20.81% | |
72 Outperform | $382.19M | 35.48 | 19.65% | ― | -1.72% | -70.31% | |
67 Neutral | $57.64M | 13.34 | 6.88% | 1.77% | 8.83% | 41.90% | |
61 Neutral | $17.97B | 12.87 | -5.30% | 2.97% | 1.26% | -14.45% | |
55 Neutral | $111.40M | ― | 92.02% | ― | -3.09% | -30.16% | |
41 Neutral | $32.04M | ― | -978.37% | ― | -1.23% | -68.38% | |
39 Underperform | $33.71M | ― | 38.50% | 160.64% | 0.96% | -57.29% |
* Consumer Cyclical Sector Average
Performance Comparison
NDLS
Noodles & Co
0.67
-0.66
-49.62%
BDL
Flanigan's Enterprises
29.58
2.81
10.50%
RAVE
Rave Restaurant Group
3.42
1.64
92.13%
RRGB
Red Robin Gourmet
6.17
3.13
102.96%
PBPB
Potbelly
12.65
5.06
66.67%
FAT
Fat Brands
1.88
-0.82
-30.37%
Noodles & Co Corporate Events
M&A TransactionsBusiness Operations and Strategy
Noodles & Co Reviews Strategic Alternatives for Growth
Positive
Sep 3, 2025
On September 3, 2025, Noodles & Company announced a review of strategic alternatives to maximize shareholder value, considering options such as refinancing, refranchising, or selling parts of the business. The company has seen a positive 4.5% increase in comparable restaurant sales in August, attributed to initiatives like the Delicious Duos platform, and aims to strengthen its market position while exploring strategic options.
Executive/Board ChangesBusiness Operations and Strategy
Noodles & Co Appoints Joseph D. Christina as CEO
Neutral
Aug 5, 2025
On August 5, 2025, Noodles & Company announced the appointment of Joseph D. Christina as the new President and CEO, succeeding Drew Madsen who stepped down for personal medical reasons but will remain on the Board of Directors. The company also rescheduled its second quarter 2025 financial results conference call to August 13, 2025, indicating a strategic focus on operational excellence and growth under Christina’s leadership.
Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
Noodles & Co Faces Nasdaq Non-Compliance Notice
Negative
Jun 25, 2025
On June 24, 2025, Noodles & Company received a notification from Nasdaq indicating non-compliance with the Minimum Bid Price Requirement, as their stock price fell below $1.00 per share for 30 consecutive business days. The company has until December 22, 2025, to regain compliance by maintaining a minimum bid price of $1.00 per share for ten consecutive business days. If unsuccessful, they may qualify for an additional compliance period by transferring to The Nasdaq Capital Market. Noodles & Company is considering options, including a reverse stock split, to address the issue.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.