tiprankstipranks
Noodles & Co. (NDLS)
NASDAQ:NDLS
Want to see NDLS full AI Analyst Report?

Noodles & Co (NDLS) AI Stock Analysis

228 Followers

Top Page

NDLS

Noodles & Co

(NASDAQ:NDLS)

Select Model
Select Model
Select Model
Neutral 61 (OpenAI - 5.2)
Rating:61Neutral
Price Target:
$18.50
▲(20.44% Upside)
Action:Reiterated
Date:07/31/26
NDLS scores mid-range: strong technical uptrend and a constructive earnings-call outlook (raised guidance, margin and EBITDA improvement, and expected free-cash-flow positivity) are balanced by the biggest constraint—high leverage with negative equity and ongoing losses—which keeps overall risk elevated despite improving operations.
Positive Factors
Same-store Sales Momentum
Sustained same-store sales strength over 16 months and a 9.1% Q1 comp indicate persistent customer demand and effective pricing/marketing. Durable comp growth supports unit economics, helps absorb fixed costs, and underpins longer-term margin recovery and franchising appeal.
Negative Factors
High Leverage & Negative Equity
Negative equity and elevated leverage materially constrain financial flexibility, increase refinancing and covenant risks, and elevate interest burdens. Over the medium term this limits ability to fund growth, absorb shocks, or invest in remodels and digital initiatives without external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Same-store Sales Momentum
Sustained same-store sales strength over 16 months and a 9.1% Q1 comp indicate persistent customer demand and effective pricing/marketing. Durable comp growth supports unit economics, helps absorb fixed costs, and underpins longer-term margin recovery and franchising appeal.
Read all positive factors

Noodles & Co (NDLS) vs. SPDR S&P 500 ETF (SPY)

Noodles & Co Business Overview & Revenue Model

Company Description
Noodles & Company is a fast-casual dining enterprise, engaged in both the conceptualization and operation of its eateries. Patrons can choose from an extensive menu of meals prepared fresh to order, featuring a variety of noodle and pasta dishes, ...
How the Company Makes Money
Noodles & Company makes money primarily by selling prepared food and beverages to customers through its restaurant network. The company’s core revenue stream is company-owned restaurant sales, which are generated from in-store dining and off-premi...

Noodles & Co Earnings Call Summary

Earnings Call Date:May 06, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: meaningful comparable sales growth, significant margin expansion, tripling of adjusted EBITDA, improved customer acquisition and raised full-year guidance. These positives are partly offset by a flat total revenue figure (due to closures), a Q1 net loss that included a $2.7M impairment, low quarter-end cash ($1.4M), elevated debt ($106.8M) and planned restaurant closures. Overall, the operational improvements, financial outperformance versus prior year, and upgraded guidance outweigh the challenges, which management positions as strategic and temporary.
Positive Updates
Strong Comparable Sales Growth
System-wide comparable restaurant sales increased 9.1% in Q1 (company-owned +9.4%, franchise +8.0%); April comps continued momentum at >9% system-wide and >10% at company-operated restaurants. Company has delivered positive same-store sales for 16 consecutive months.
Negative Updates
Flat Total Revenue
Total revenue in Q1 was relatively flat year-over-year at $123.8 million, with comp sales gains largely offset by restaurant closures taken during portfolio optimization.
Read all updates
Q1-2026 Updates
Negative
Strong Comparable Sales Growth
System-wide comparable restaurant sales increased 9.1% in Q1 (company-owned +9.4%, franchise +8.0%); April comps continued momentum at >9% system-wide and >10% at company-operated restaurants. Company has delivered positive same-store sales for 16 consecutive months.
Read all positive updates
Company Guidance
Noodles & Company raised full‑year 2026 guidance to total revenue of $483–$498 million, with comp restaurant sales growth of 7%–10% and restaurant contribution margin of 15.5%–17%; adjusted EBITDA is expected to be $32.5–$37.5 million. Management forecasts G&A of $50–$53 million (including roughly $2.5 million of stock‑based compensation), depreciation & amortization of $24–$25 million, interest expense of $10–$11 million, and capital expenditures of $9.5–$10.5 million; they project 1–2 new franchise openings and plan to close about 30–35 company‑owned and 5 franchise restaurants. The company expects to be free‑cash‑flow positive and to reduce debt by approximately $10 million in 2026 (including the $3.4 million reduction already realized), having ended Q1 with $1.4 million of available cash and $106.8 million of debt.

Noodles & Co Financial Statement Overview

Summary
Operations are improving (TTM revenue +12.2%, EBITDA margin back to positive, and modestly positive free cash flow), but overall financial strength is constrained by weak profitability (net losses and negative margin) and a stressed balance sheet with high leverage and negative equity, which elevates refinancing and flexibility risk.
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
36
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue495.69M495.09M493.27M503.40M509.48M475.15M
Gross Profit24.07M44.03M168.96M84.21M80.17M82.08M
EBITDA11.92M-4.54M1.29M21.76M22.44M28.15M
Net Income-23.33M-42.57M-36.21M-9.86M-3.31M3.67M
Balance Sheet
Total Assets235.77M261.67M324.65M368.10M343.84M341.46M
Cash, Cash Equivalents and Short-Term Investments1.30M1.26M1.15M3.01M1.52M2.25M
Total Debt242.53M263.83M291.50M298.94M264.16M249.78M
Total Liabilities286.79M306.98M330.23M340.94M305.48M303.83M
Stockholders Equity-51.02M-45.30M-5.58M27.16M38.36M37.63M
Cash Flow
Free Cash Flow3.76M-5.11M-21.21M-24.55M-24.33M17.39M
Operating Cash Flow13.42M7.28M7.56M27.50M9.56M36.16M
Investing Cash Flow-9.66M-12.39M-26.71M-51.80M-32.31M-18.37M
Financing Cash Flow-4.73M5.23M17.29M25.80M22.02M-23.38M

Noodles & Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.36
Price Trends
50DMA
13.32
Positive
100DMA
11.37
Positive
200DMA
8.53
Positive
Market Momentum
MACD
-0.12
Negative
RSI
64.39
Neutral
STOCH
79.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDLS, the sentiment is Positive. The current price of 15.36 is above the 20-day moving average (MA) of 13.31, above the 50-day MA of 13.32, and above the 200-day MA of 8.53, indicating a bullish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 64.39 is Neutral, neither overbought nor oversold. The STOCH value of 79.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDLS.

Noodles & Co Risk Analysis

Noodles & Co disclosed 36 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
77
Outperform
$44.06M15.2819.21%3.20%9.92%
66
Neutral
$74.90M13.009.04%1.89%5.74%47.36%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
$104.89M-4.6450.91%0.19%46.85%
52
Neutral
$14.78M8.075.46%-5.12%73.41%
42
Neutral
$20.37M-3.39-18.91%-11.28%36.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NDLS
Noodles & Co
18.62
11.90
177.08%
ARKR
Ark Restaurants
5.78
-2.57
-30.84%
BDL
Flanigan's Enterprises
41.74
11.84
39.58%
GTIM
Good Times Restaurants
1.38
0.02
1.47%
RAVE
Rave Restaurant Group
3.15
0.31
10.92%

Noodles & Co Corporate Events

Executive/Board ChangesShareholder Meetings
Noodles & Co Shareholders Back Board Changes, Pay Policies
Positive
May 14, 2026
At its annual meeting of stockholders held on May 13, 2026, Noodles Co shareholders re-elected Joseph Christina and elected Thomas Lynch as Class I directors to serve three-year terms, while Lynch resigned as a Class III director solely to facili...
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.Date of analysis: Jul 31, 2026