Noodles & Co (NDLS) AI Stock Analysis

• Market Cap: $30.62M
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -1.23%
• EPS Growth: -68.38%
• Country: US
• Employees: 7,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.10
• Shares Outstanding: 46,441,544
• 10 Day Avg. Volume: 1,105,146
• 30 Day Avg. Volume: 1,442,384
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $2.00
• Price Target Upside: 166.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.50 ▼(-33.33% Downside)

Noodles & Co's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, high leverage, and liquidity issues. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings. While the earnings call showed some operational improvements, the financial outlook remains challenging.

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. 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 2019	Dec 2018	Dec 2017	Dec 2016
Income Statement
Total Revenue	494.75M	493.27M	462.41M	457.84M	456.49M	487.47M
Gross Profit	117.45M	168.96M	79.12M	72.40M	68.89M	66.70M
EBITDA	-4.77M	1.29M	26.78M	18.49M	-9.24M	-39.39M
Net Income	-43.06M	-36.21M	1.65M	-8.44M	-45.45M	-71.68M
Balance Sheet
Total Assets	273.31M	324.65M	378.52M	172.03M	185.23M	209.46M
Cash, Cash Equivalents and Short-Term Investments	2.26M	1.15M	10.46M	4.66M	3.36M	1.84M
Total Debt	284.82M	293.51M	289.55M	44.90M	57.62M	84.68M
Total Liabilities	325.35M	330.23M	327.95M	119.35M	149.37M	183.64M
Stockholders Equity	-30.77M	-5.58M	50.57M	52.68M	35.86M	25.82M
Cash Flow
Free Cash Flow	-18.24M	-21.21M	11.27M	-8.99M	-16.73M	-18.60M
Operating Cash Flow	-986.00K	7.56M	30.06M	5.35M	4.10M	24.74M
Investing Cash Flow	-17.26M	-26.71M	-18.44M	-13.84M	-20.83M	-42.76M
Financing Cash Flow	18.70M	17.29M	-5.82M	9.79M	18.27M	17.90M

Noodles & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.75
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.75 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.67, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 28.26 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
BDL	71 Outperform	$61.32M	14.19	6.88%	1.74%	8.83%	41.90%
RAVE	68 Neutral	$33.11M	12.52	20.12%	―	-1.30%	9.43%
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	41 Neutral	$30.62M	―	―	―	-1.23%	-68.38%
FAT	40 Underperform	$32.02M	-0.14	―	201.33%	-5.26%	-44.78%

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.