Noodles & Co (NDLS) AI Stock Analysis

• Market Cap: $28.75M
• Dividend Yield: N/A
• Average Volume (3M): 213.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -1.23%
• EPS Growth: -68.38%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.12
• Shares Outstanding: 46,441,544
• 10 Day Avg. Volume: 218,951
• 30 Day Avg. Volume: 213,609
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 10.97
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 3.27
• Enterprise Value/Ebitda: -245.78
• 1Y Price Target: $1.25
• Price Target Upside: 101.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 41 Neutral
• Price Target: $0.50 ▼(-19.35% Downside)

Noodles & Co's overall stock score reflects significant financial and operational challenges. The most impactful factors are the weak financial performance and concerning valuation, both indicating substantial risks. Technical analysis and corporate events add to the cautious outlook, with strategic reviews and compliance issues influencing future prospects.

Positive Factors

Strategic Alternatives Review

The strategic review could lead to significant structural changes, such as refinancing or refranchising, potentially enhancing long-term shareholder value and operational efficiency.

Digital Engagement Growth

Improved digital engagement indicates successful adaptation to consumer trends, potentially driving sustained revenue growth through increased online sales and customer loyalty.

Same-Store Sales Growth

Positive same-store sales growth reflects effective marketing and menu strategies, suggesting potential for ongoing revenue improvement and competitive positioning.

Negative Factors

Negative Profitability

Sustained net losses highlight ongoing profitability challenges, which may hinder investment in growth initiatives and strain financial resources over the long term.

Leveraged Balance Sheet

A leveraged balance sheet with negative equity poses significant risks to financial stability, potentially limiting the company's ability to invest in growth or weather economic downturns.

Nasdaq Non-Compliance

Non-compliance with Nasdaq requirements risks delisting, which could reduce market liquidity and investor confidence, impacting long-term capital access and stock performance.

Noodles & Co Business Overview & Revenue Model

Company Description

Noodles & 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 Money

Noodles & 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.62 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.77, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.04 is Neutral, neither overbought nor oversold. The STOCH value of 11.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NDLS.

Noodles & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	78 Outperform	49.03M	18.54	―	―	-1.30%	9.43%
BDL	71 Outperform	55.47M	12.58	5.48%	1.84%	8.83%	41.90%
PBPB	68 Neutral	515.34M	47.84	69.01%	―	-1.72%	-70.31%
RRGB	55 Neutral	125.01M	-2.05	92.02%	―	-3.09%	-30.16%
FAT	45 Neutral	35.79M	-0.15	39.58%	154.08%	0.96%	-57.29%
NDLS	41 Neutral	$28.75M	―	-978.37%	―	-1.23%	-68.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Noodles & Co Corporate Events

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.

Noodles & Co Appoints Joseph D. Christina as CEO

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.

Noodles & Co Faces Nasdaq Non-Compliance Notice

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.