Noodles & Co (NDLS) AI Stock Analysis

• Market Cap: $32.83M
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -0.35%
• EPS Growth: -37.02%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.10
• Shares Outstanding: 46,774,700
• 10 Day Avg. Volume: 328,037
• 30 Day Avg. Volume: 1,585,415
• PEG Ratio: >-0.01
• Price to Book (P/B): -4.72
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -1.24
• Enterprise Value/Market Cap: 9.17
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 2.56
• Enterprise Value/Ebitda: -63.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.53
• Revenue Forecast (FY): $489.37M

• Rating: 46 Neutral
• Price Target: $0.70 ▼(-3.47% Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining revenues, high leverage, and liquidity issues. While the earnings call provided some positive outlooks, the technical analysis and valuation remain weak, contributing to a low overall score.

Positive Factors

Comparable Sales Growth

The growth in comparable sales indicates strong customer engagement and market competitiveness, suggesting potential for sustained revenue improvement.

Digital Sales Growth

Increased digital sales enhance convenience and reach, aligning with consumer trends towards online ordering, supporting long-term revenue growth.

Improved Restaurant Contribution Margins

Margin improvement reflects effective cost management and operational efficiency, which are crucial for long-term profitability and financial health.

Negative Factors

Declining Revenue

The decline in total revenue highlights challenges in maintaining sales momentum, which could pressure financial performance if not addressed.

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow indicates liquidity challenges, which can hinder the company's ability to fund operations and strategic initiatives.

Noodles & Co Business Overview & Revenue Model

Company Description

Noodles & Company (NDLS) is a fast-casual restaurant chain specializing in globally inspired noodle dishes, salads, and soups. Founded in 1995, the company operates in the food service sector, offering a diverse menu that includes pasta from various cuisines such as Italian, Asian, and American. Noodles & Company focuses on providing fresh, high-quality ingredients and customizable meals in a casual dining environment, catering to a wide range of dietary preferences including vegetarian and gluten-free options.

How the Company Makes Money

Noodles & Company generates revenue primarily through the sale of its food and beverage offerings in its restaurants. The company operates both company-owned and franchised locations, with revenue coming from direct sales to customers. Key revenue streams include dine-in, take-out, and catering services. In addition, Noodles & Company has embraced digital ordering and delivery partnerships with third-party services, enhancing sales through online channels. The company may also generate income through promotional partnerships, limited-time menu offerings, and loyalty programs that encourage repeat customers, contributing to its overall earnings.

Noodles & Co Financial Statement Overview

Summary

Noodles & Co is facing significant financial challenges. The income statement shows declining revenues and profitability, with a negative growth rate and margins. The balance sheet reflects high leverage and negative equity, indicating financial instability. Cash flow analysis reveals liquidity issues with negative operating and free cash flows. Overall, the financial health is concerning.

Income Statement

Noodles & Co has experienced a decline in revenue growth, with a negative growth rate of -18.5% in the TTM period. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin has also decreased from previous periods, reflecting increased cost pressures. Overall, the income statement reflects a challenging operating environment with declining revenues and profitability.

Balance Sheet

The balance sheet shows significant leverage, with a high debt-to-equity ratio of -3.28 in the TTM period, indicating financial risk. The company's stockholders' equity is negative, which is concerning for financial stability. Return on equity is positive due to negative equity, but this is not a sustainable situation. Overall, the balance sheet reflects high financial risk and instability.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows in the TTM period, indicating liquidity challenges. The free cash flow to net income ratio is high due to negative net income, but this is not a positive indicator. The company needs to improve its cash generation to support operations and reduce financial risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	494.75M	493.27M	503.40M	509.48M	475.15M	393.65M
Gross Profit	117.45M	168.96M	84.21M	80.17M	82.08M	51.54M
EBITDA	-4.77M	1.29M	21.76M	22.44M	28.15M	1.68M
Net Income	-43.06M	-36.21M	-9.86M	-3.31M	3.67M	-23.26M
Balance Sheet
Total Assets	294.57M	324.65M	368.10M	343.84M	341.46M	353.63M
Cash, Cash Equivalents and Short-Term Investments	2.26M	1.15M	3.01M	1.52M	2.25M	7.84M
Total Debt	278.90M	291.50M	298.94M	264.16M	249.78M	280.42M
Total Liabilities	325.35M	330.23M	340.94M	305.48M	303.83M	323.93M
Stockholders Equity	-30.77M	-5.58M	27.16M	38.36M	37.63M	29.70M
Cash Flow
Free Cash Flow	-18.24M	-21.21M	-24.55M	-24.33M	17.39M	-2.66M
Operating Cash Flow	-986.00K	7.56M	27.50M	9.56M	36.16M	9.12M
Investing Cash Flow	-17.26M	-26.71M	-51.80M	-32.31M	-18.37M	-10.95M
Financing Cash Flow	18.70M	17.29M	25.80M	22.02M	-23.38M	-798.00K

Noodles & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.72 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.68, and below the 200-day MA of 0.87, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.12 is Neutral, neither overbought nor oversold. The STOCH value of 76.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDLS.

Noodles & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	76 Outperform	$33.11M	12.52	20.05%	―	0.35%	9.25%
BDL	71 Outperform	$57.24M	13.25	6.88%	1.79%	8.83%	41.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GTIM	51 Neutral	$14.14M	11.44	3.85%	―	1.84%	12.10%
ARKR	47 Neutral	$25.60M	-1.83	-33.50%	―	-6.89%	-42.75%
NDLS	46 Neutral	$32.83M	―	―	―	-0.35%	-37.02%
FAT	41 Neutral	$32.02M	-0.14	―	517.12%	-5.26%	-44.78%

Noodles & Co Corporate Events

Noodles & Company Earnings Call Reveals Mixed Sentiment

Noodles & Company recently held its earnings call, revealing a mixed sentiment. The company showcased strong performance in comparable sales growth and strategic initiatives, such as the Delicious Duos platform and digital sales improvements. However, challenges persist, including a slight decrease in total revenue and a net loss impacted by restaurant closures.

Noodles & Company Reports Q3 2025 Financial Results

Noodles & Company, a fast-casual restaurant chain known for its diverse noodle dishes, operates in the restaurant industry with a focus on globally inspired flavors and a people-first culture.

Noodles & Co Reviews Strategic Alternatives for Growth

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.

The most recent analyst rating on (NDLS) stock is a Sell with a $0.50 price target. To see the full list of analyst forecasts on Noodles & Co stock, see the NDLS Stock Forecast page.

Noodles & Company Earnings Call: Mixed Results and Cautious Outlook

The recent earnings call for Noodles & Company presented a mixed bag of outcomes, reflecting both positive strides and significant challenges. On the upside, the company reported growth in same-store sales and improvements in digital engagement. However, these were counterbalanced by a decline in overall revenue, increased operational costs, and a notable net loss. Operational adjustments and the introduction of the Delicious Duos platform have shown potential in enhancing sales trends, yet the financial outlook remains cautious with revised guidance.

Noodles & Company Reports Mixed Q2 2025 Results

Noodles & Company, a prominent player in the fast-casual dining sector, specializes in offering a diverse menu centered around noodles, catering to a wide range of taste preferences with approximately 450 locations nationwide.