Noodles & Co (NDLS) AI Stock Analysis

• Market Cap: $38.83M
• Dividend Yield: N/A
• Average Volume (3M): 616.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• 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: 46,783,627
• 10 Day Avg. Volume: 912,229
• 30 Day Avg. Volume: 616,467
• 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: 7.75
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $0.81 ▲(12.92% Upside)

The score is weighed down primarily by weak financial performance (declining revenue, ongoing losses, negative equity, and negative operating/free cash flow). Technical indicators also remain soft (below key moving averages with negative MACD). Offsetting factors include a more positive earnings call showing improving comps, margins, and EBITDA, but this is tempered by significant delisting/remediation risk and a valuation profile driven by losses (negative P/E).

Positive Factors

Comparable Sales Growth

The increase in comparable sales indicates strong customer demand and effective marketing strategies, which can drive long-term revenue growth and improve market position.

Digital Sales Expansion

Growth in digital sales shows successful adaptation to consumer trends, enhancing revenue streams and supporting long-term business sustainability.

Improved Margins

Improved margins and EBITDA indicate better cost management and operational efficiency, which can enhance profitability and financial health over time.

Negative Factors

Revenue Decline

A decline in total revenue suggests challenges in maintaining sales growth, which could impact long-term financial performance and market competitiveness.

High Financial Risk

High leverage and negative equity present financial risks, potentially limiting the company's ability to invest in growth and weather economic downturns.

Nasdaq Delisting Risk

Potential delisting from Nasdaq could reduce stock liquidity and access to capital, impacting the company's ability to finance operations and growth 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, the balance sheet reflects high leverage and negative equity, and cash flow analysis indicates liquidity issues. These factors contribute to a low financial performance score.

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: Positive
• 200DMA: Positive
• 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 below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.74, and below the 200-day MA of 0.79, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 67.68 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	77 Outperform	$44.77M	16.35	20.05%	―	0.35%	9.25%
BDL	62 Neutral	$59.76M	11.87	7.97%	1.89%	8.99%	49.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GTIM	46 Neutral	$12.35M	12.24	3.85%	―	1.84%	12.10%
NDLS	44 Neutral	$38.83M	-0.85	―	―	-0.35%	-37.02%
FAT	41 Neutral	$8.79M	-0.03	―	760.71%	-5.26%	-44.78%
ARKR	40 Underperform	$23.38M	-2.10	-29.84%	―	-9.70%	-194.23%

Noodles & Co Corporate Events

Noodles & Co Faces Nasdaq Delisting, Plans Remediation

On June 24, 2025, Noodles & Company disclosed that it had fallen out of compliance with Nasdaq’s minimum $1.00 bid price requirement after its stock traded below the threshold for 30 consecutive business days, triggering a 180-day grace period that expired on December 22, 2025 without regaining compliance. Having also failed to qualify for a market transfer that could have provided additional time, the company received a delisting determination letter on December 23, 2025 and now plans to request a hearing before a Nasdaq panel by December 30, 2025, which will temporarily stay any suspension or delisting. To address the deficiency, Noodles & Company will present a remediation plan that may include a reverse stock split, to be authorized via a proposed amendment to its charter at a special shareholder meeting on February 4, 2026, with the board able to effect a split at a ratio between 1-for-2 and 1-for-15 within a year if needed; the company warns that failure to regain compliance could result in delisting, reduced liquidity, a lower share price, constrained access to capital, and potential defaults or penalties under existing agreements, heightening risk for shareholders and creditors.

The most recent analyst rating on (NDLS) stock is a Hold with a $0.61 price target. To see the full list of analyst forecasts on Noodles & Co stock, see the NDLS Stock Forecast page.