Noodles & Co (NDLS) AI Stock Analysis

• Market Cap: $43.46M
• Dividend Yield: N/A
• Average Volume (3M): 179.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -0.61%
• EPS Growth: -200.32%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Restaurants
• EPS (TTM): -0.20
• Shares Outstanding: 45,943,640
• 10 Day Avg. Volume: 127,634
• 30 Day Avg. Volume: 179,377
• PEG Ratio: 0.13
• Price to Book (P/B): -1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.07
• Enterprise Value/Market Cap: 5.04
• Enterprise Value/Revenue: 0.11
• Enterprise Value/Gross Profit: 2.46
• Enterprise Value/Ebitda: 12.26
• 1Y Price Target: $3.00
• Price Target Upside: 215.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $1.00 ▲(5.26%Upside)

The overall stock score for Noodles & Co reflects substantial financial challenges, including negative profitability and leverage issues, which are the most significant factors. While there are some positive signals from technical analysis and strategic initiatives highlighted in the earnings call, these are overshadowed by valuation concerns and the risk of Nasdaq non-compliance.

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.

Sales Performance

QTD SSS are running 'north of 3% with a positive contribution from traffic'.

Negative Factors

Cost Management

Restaurant level margin was down driven largely by higher commodity costs and costs pressures related to the menu launch.

Cost of Goods Sold

Restaurant level margin of 11.2% was down 350bps y-o-y driven largely by a 230bps increase in cost of goods sold.

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 generates revenue primarily through the sale of food and beverages at its restaurant locations. The company's key revenue streams include in-restaurant dining, takeout, and delivery services. Additionally, Noodles & Company engages in catering services for both individual and corporate clients. The company also benefits from strategic partnerships with delivery platforms to enhance its accessibility and reach a broader customer base. Factors such as menu innovation, marketing initiatives, and customer loyalty programs contribute significantly to its earnings by driving traffic and encouraging repeat business.

Noodles & Co Financial Statement Overview

Summary

Noodles & Co faces financial challenges with declining revenues and negative profitability. The balance sheet shows negative stockholders' equity and high leverage, highlighting significant risks. While operating cash flow generation is positive, overall cash flow remains weak.

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	Dec 2024	Mar 2024	Mar 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	493.27M	503.40M	509.48M	475.15M	393.65M
Gross Profit	168.96M	84.21M	80.17M	82.08M	51.54M
EBITDA	1.29M	21.76M	22.44M	28.15M	1.68M
Net Income	-36.21M	-9.86M	-3.31M	3.67M	-23.26M
Balance Sheet
Total Assets	324.65M	368.10M	343.84M	341.46M	353.63M
Cash, Cash Equivalents and Short-Term Investments	1.15M	3.01M	1.52M	2.25M	7.84M
Total Debt	291.50M	300.41M	264.16M	249.78M	280.42M
Total Liabilities	330.23M	340.94M	305.48M	303.83M	323.93M
Stockholders Equity	-5.58M	27.16M	38.36M	37.63M	29.70M
Cash Flow
Free Cash Flow	-21.21M	-24.55M	-24.33M	17.39M	-2.66M
Operating Cash Flow	7.56M	27.50M	9.56M	36.16M	9.12M
Investing Cash Flow	-26.71M	-51.80M	-32.31M	-18.37M	-10.95M
Financing Cash Flow	17.29M	25.80M	22.02M	-23.38M	-798.00K

Noodles & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 0.95 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.81, and below the 200-day MA of 0.99, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 74.33 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
PBPB	76 Outperform	$381.68M	9.00	117.47%	―	-3.96%	1036.87%
BDL	75 Outperform	$58.08M	14.34	6.48%	3.36%	9.38%	14.76%
RAVE	73 Outperform	$39.79M	15.01	21.75%	―	2.93%	20.81%
Sector *	63 Neutral	$17.14B	11.11	-7.24%	3.14%	1.68%	-25.43%
RRGB	56 Neutral	$122.73M	―	92.02%	―	-1.68%	-140.83%
NDLS	48 Neutral	$43.46M	―	-978.37%	―	-0.61%	-200.32%
FAT	44 Neutral	$43.38M	―	38.50%	130.58%	10.63%	-93.67%

Noodles & Co Corporate Events

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.

The most recent analyst rating on (NDLS) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Noodles & Co stock, see the NDLS Stock Forecast page.

Noodles & Co Re-elects Directors at Annual Meeting

Noodles & Co held its annual meeting of stockholders on May 14, 2025. Shareholders voted to re-elect three Class III directors, approve executive compensation, set the frequency of future advisory votes on executive compensation to one year, and ratify Ernst & Young LLP as the independent registered public accounting firm for 2025. A stockholder proposal for simple majority voting requirements was not approved.

The most recent analyst rating on (NDLS) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Noodles & Co stock, see the NDLS Stock Forecast page.