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Noodles & Company (NDLS) investor relations material

Noodles & Company Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary5 Nov, 2025

Executive summary

  • Achieved 4% comparable sales growth in Q3, with momentum accelerating to 8% in October, outperforming fast casual benchmarks despite a challenging consumer environment.

  • Digital sales, especially third-party delivery, grew 12% year-over-year, and loyalty program engagement increased, supporting sales and brand relevance.

  • Strategic initiatives, including new menu items and the Delicious Duos value platform, drove guest enthusiasm and repeat visits.

  • Closed underperforming restaurants, transferring about 30% of sales to nearby units, improving profitability and operational efficiency.

  • Net loss widened to $9.2 million ($0.20 per diluted share) due to $5.3 million in pre-tax restaurant impairments related to planned closures, while adjusted EBITDA increased 32.7% to $6.5 million.

Financial highlights

  • Total revenue for Q3 decreased 0.5% year-over-year to $122.1 million.

  • System-wide comparable restaurant sales increased 4.0% in Q3; company-owned up 4.0%, franchise up 4.3%.

  • Company average unit volumes rose to $1.34 million.

  • Restaurant-level margin improved to 13.2% from 12.8% in Q3 2024.

  • Available cash and cash equivalents stood at $4.7 million, with $109.8 million in outstanding debt and $12.2 million available under the revolving credit facility.

Outlook and guidance

  • Full-year 2025 revenue expected at $492–$495 million, with comp sales growth of 3.6%–4.2%.

  • Restaurant contribution margin guidance: 12.3%–12.7%.

  • G&A expenses projected at $48–$49 million; capex at $12–$13 million.

  • Two new company-owned restaurants to open, while 31–34 company-owned and 7–8 franchise restaurants are expected to close.

  • Strategic closures of underperforming restaurants expected to improve 2026 restaurant-level contribution by over $2 million.

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Frequently asked questions

Noodles & Company owns and operates a fast-casual restaurant chain that offers globally inspired noodle and pasta dishes, soups, salads, and sandwiches. The company operates company-owned and franchised locations across the United States, catering to a broad demographic with customizable and made-to-order meals. The company is headquartered in Broomfield, Colorado, and its shares are listed on the NASDAQ.

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