Noodles & Company Announces Fourth Quarter and Full Year 2024 Financial Results
Noodles & Company (NDLS) reported Q4 and full-year 2024 results with mixed performance. Q4 total revenue decreased 2.0% to $121.8M, though system-wide comparable sales increased 0.8%. The company posted a Q4 net loss of $9.7M ($0.21 per share), wider than the $6.1M loss in Q4 2023.
For full-year 2024, revenue declined 2.0% to $493.3M with system-wide comparable sales down 1.5%. Annual net loss expanded to $36.2M ($0.80 per share) from $9.9M in 2023. Restaurant contribution margin decreased to 13.2% from 14.9%.
Looking ahead to 2025, management expects:
- Revenue of $503M-$512M
- Mid-single digit comparable restaurant sales growth
- Restaurant contribution margins of 12.5%-14.0%
- Two new company-owned openings
- 12-15 company-owned and 4 franchise restaurant closures
Noodles & Company (NDLS) ha riportato i risultati del quarto trimestre e dell'intero anno 2024 con una performance mista. Le entrate totali del Q4 sono diminuite del 2,0% a $121,8 milioni, anche se le vendite comparabili a livello di sistema sono aumentate dello 0,8%. L'azienda ha registrato una perdita netta di $9,7 milioni nel Q4 ($0,21 per azione), più ampia rispetto alla perdita di $6,1 milioni nel Q4 2023.
Per l'intero anno 2024, le entrate sono diminuite del 2,0% a $493,3 milioni, con vendite comparabili a livello di sistema in calo dell'1,5%. La perdita netta annuale è aumentata a $36,2 milioni ($0,80 per azione) rispetto ai $9,9 milioni del 2023. Il margine di contribuzione del ristorante è diminuito al 13,2% dal 14,9%.
Guardando avanti al 2025, la direzione si aspetta:
- Entrate di $503 milioni-$512 milioni
- Crescita delle vendite comparabili dei ristoranti a singolo cifra media
- Margini di contribuzione del ristorante del 12,5%-14,0%
- Due nuove aperture di ristoranti di proprietà dell'azienda
- Chiusure di 12-15 ristoranti di proprietà e 4 in franchising
Noodles & Company (NDLS) informó sobre los resultados del cuarto trimestre y del año completo 2024 con un desempeño mixto. Los ingresos totales del Q4 disminuyeron un 2,0% a $121,8 millones, aunque las ventas comparables a nivel de sistema aumentaron un 0,8%. La compañía registró una pérdida neta de $9,7 millones en el Q4 ($0,21 por acción), más amplia que la pérdida de $6,1 millones en el Q4 de 2023.
Para el año completo 2024, los ingresos cayeron un 2,0% a $493,3 millones, con ventas comparables a nivel de sistema en descenso del 1,5%. La pérdida neta anual se amplió a $36,2 millones ($0,80 por acción) desde $9,9 millones en 2023. El margen de contribución del restaurante disminuyó al 13,2% desde el 14,9%.
De cara a 2025, la dirección espera:
- Ingresos de $503 millones a $512 millones
- Crecimiento de ventas comparables de restaurantes en dígitos medios
- Margenes de contribución de restaurantes del 12,5% al 14,0%
- Dos nuevas aperturas de restaurantes de propiedad de la empresa
- Cierres de 12-15 restaurantes de propiedad y 4 en franquicia
Noodles & Company (NDLS)는 2024년 4분기 및 연간 실적을 발표했으며, 결과는 엇갈린 성과를 보였습니다. 4분기 총 수익은 2.0% 감소하여 1억 2,180만 달러에 이르렀고, 시스템 전반의 비교 가능한 매출은 0.8% 증가했습니다. 회사는 4분기에 970만 달러(주당 0.21달러)의 순손실을 기록했으며, 이는 2023년 4분기의 610만 달러 손실보다 더 큰 수치입니다.
2024년 전체 연도에 대한 수익은 2.0% 감소하여 4억 9,330만 달러에 이르렀고, 시스템 전반의 비교 가능한 매출은 1.5% 감소했습니다. 연간 순손실은 2023년의 990만 달러에서 3,620만 달러(주당 0.80달러)로 확대되었습니다. 레스토랑 기여 마진은 14.9%에서 13.2%로 감소했습니다.
2025년을 바라보며, 경영진은 다음과 같은 예상을 하고 있습니다:
- 수익 5억 3백만 달러에서 5억 1천 2백만 달러
- 중간 단위 성장의 비교 가능한 레스토랑 매출 성장
- 레스토랑 기여 마진 12.5%에서 14.0%
- 두 개의 새로운 회사 소유 레스토랑 개점
- 회사 소유 레스토랑 12-15개 및 프랜차이즈 레스토랑 4개 폐쇄
Noodles & Company (NDLS) a annoncé des résultats pour le quatrième trimestre et l'année entière 2024 avec des performances mitigées. Les revenus totaux du Q4 ont diminué de 2,0 % pour atteindre 121,8 millions de dollars, bien que les ventes comparables à l'échelle du système aient augmenté de 0,8 %. L'entreprise a enregistré une perte nette de 9,7 millions de dollars au Q4 (0,21 $ par action), plus importante que la perte de 6,1 millions de dollars au Q4 2023.
Pour l'année entière 2024, les revenus ont diminué de 2,0 % pour atteindre 493,3 millions de dollars, avec des ventes comparables à l'échelle du système en baisse de 1,5 %. La perte nette annuelle s'est élargie à 36,2 millions de dollars (0,80 $ par action) contre 9,9 millions de dollars en 2023. La marge de contribution des restaurants a diminué de 14,9 % à 13,2 %.
En regardant vers 2025, la direction s'attend à :
- Des revenus de 503 millions à 512 millions de dollars
- Une croissance des ventes comparables des restaurants à un chiffre moyen
- Des marges de contribution des restaurants de 12,5 % à 14,0 %
- Deux nouvelles ouvertures de restaurants détenus par l'entreprise
- La fermeture de 12 à 15 restaurants détenus et de 4 restaurants franchisés
Noodles & Company (NDLS) hat die Ergebnisse des vierten Quartals und des Gesamtjahres 2024 mit gemischter Leistung veröffentlicht. Der Gesamtumsatz im Q4 sank um 2,0% auf 121,8 Millionen Dollar, während die vergleichbaren Verkaufszahlen im gesamten System um 0,8% stiegen. Das Unternehmen verzeichnete im Q4 einen Nettoverlust von 9,7 Millionen Dollar (0,21 Dollar pro Aktie), was größer ist als der Verlust von 6,1 Millionen Dollar im Q4 2023.
Für das Gesamtjahr 2024 ging der Umsatz um 2,0% auf 493,3 Millionen Dollar zurück, während die vergleichbaren Verkaufszahlen im gesamten System um 1,5% sanken. Der jährliche Nettoverlust erweiterte sich auf 36,2 Millionen Dollar (0,80 Dollar pro Aktie) von 9,9 Millionen Dollar im Jahr 2023. Die Restaurantbeitragsmarge sank von 14,9% auf 13,2%.
Für 2025 erwartet das Management:
- Umsatz von 503 Millionen bis 512 Millionen Dollar
- Wachstum der vergleichbaren Restaurantverkäufe im mittleren einstelligen Bereich
- Restaurantbeitragsmargen von 12,5% bis 14,0%
- Zwei neue, unternehmenseigene Eröffnungen
- Schließung von 12-15 unternehmenseigenen und 4 Franchise-Restaurants
- Q4 2024 system-wide comparable sales increased 0.8%
- Early Q1 2025 showing over 3% comparable sales growth
- Launching nine new menu items with increased marketing investment
- Q4 2024 revenue decreased 2.0% to $121.8M
- Q4 2024 net loss widened to $9.7M from $6.1M year-over-year
- Full-year 2024 net loss increased to $36.2M from $9.9M
- Restaurant contribution margin declined to 13.2% from 14.9%
- Planning 16-19 restaurant closures in 2025
- High debt level of $103.0M with only $1.1M cash on hand
Insights
Noodles & Company's Q4 and FY2024 results reveal significant financial challenges despite some emerging positive trends. The company posted a net loss of $36.2 million for 2024, nearly quadruple the previous year's loss of $9.9 million. Q4 specifically showed a $9.7 million loss, deeper than Q4 2023's $6.1 million loss. Revenue declined 2.0% for both the quarter and full year, with operating margins deteriorating to -6.0% and -5.6% respectively.
Restaurant contribution margins contracted substantially, falling to 11.2% in Q4 from 14.7% year-over-year, and to 13.2% for the full year from 14.9%. The company's footprint shrank with net closures of 17 locations in 2024.
The silver lining is Q4's 0.8% system-wide comparable sales increase, reversing negative trends, and accelerating performance in early 2025 with comparable sales exceeding 3% through the first eight weeks. This suggests the company's strategic menu initiatives and promotional activities are gaining traction.
The 2025 outlook projects revenue growth to $503-512 million, implying a return to positive sales momentum, though restaurant closure plans (12-15 company-owned and 4 franchised) signal continued portfolio optimization. With $103 million in debt against just $1.1 million in cash, and planned openings, the company is clearly prioritizing existing restaurant performance over expansion.
Noodles & Company's results reflect the operational challenges plaguing many fast-casual concepts in today's market. The 350+ basis point deterioration in Q4 restaurant contribution margin (11.2% vs. 14.7%) indicates severe pressure on unit economics, likely driven by labor inflation and discounting to drive traffic.
The contrasting trends between company-owned (0.5%) and franchise (1.9%) comparable sales in Q4 suggest potential execution inconsistencies across the corporate portfolio. With a portfolio rationalization strategy continuing (projected 12-15 additional company closures in 2025), management is addressing underperforming locations while attempting to strengthen the core.
CEO Drew Madsen's emphasis on menu transformation with nine new dishes and increased marketing signals a pivot toward innovation-led recovery rather than unit growth. The planned openings of just two company-owned restaurants in 2025 represents one of the lowest expansion rates in the fast-casual segment.
The liquidity position ($1.1 million cash against $103 million debt) severely limits strategic flexibility and raises concerns about the company's ability to fund the necessary brand revitalization while maintaining its debt obligations. The projected contribution margin of 12.5-14.0% for 2025 would still be below historical performance, suggesting structural challenges in the business model that may take multiple years to address.
Noodles & Company's Q4 and FY2024 results paint a concerning financial picture despite emerging positive sales trends. The company reported a $36.2 million net loss for 2024, dramatically worsening from the previous year's $9.9 million loss. Fourth quarter numbers show a $9.7 million loss compared to $6.1 million in Q4 2023, with revenue declining 2.0% to $121.8 million.
Restaurant contribution margins are under severe pressure, contracting to 11.2% from 14.7% in Q4, and operating margins deteriorated to -6.0%, indicating fundamental challenges in the unit economic model. The company's precarious liquidity position ($1.1 million cash against $103 million debt) significantly constrains strategic flexibility.
The silver lining emerges in sequential improvement trends, with Q4 delivering a 0.8% system-wide comparable sales increase and early 2025 showing accelerated growth of over 3%. CEO Drew Madsen's plan to launch nine new menu items with increased marketing support indicates a strategy pivot toward innovation-led recovery rather than unit expansion.
The 2025 outlook projects revenue growth to $503-512 million with mid-single digit comparable sales increases, yet plans for 12-15 additional company restaurant closures in 2025 reveal an ongoing need for portfolio rationalization. With just two planned openings for 2025, the company is clearly prioritizing stabilization over growth.
This results announcement reflects an operation in transformation, working to reverse substantial financial deterioration through menu innovation and operational focus while managing a challenging debt position and continuing to optimize its restaurant portfolio.
BROOMFIELD, Colo., March 06, 2025 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today announced financial results for the fourth quarter and fiscal year ended December 31, 2024, and provided a 2025 business outlook.
Key highlights for the fourth quarter of 2024 compared to the fourth quarter of 2023 include:
- Total revenue decreased
2.0% to$121.8 million from$124.3 million . - Comparable restaurant sales increased
0.8% system-wide, including a0.5% increase for company-owned restaurants and a1.9% increase for franchise restaurants. - Net loss was
$9.7 million , or$0.21 loss per diluted share, compared to net loss of$6.1 million , or$0.14 loss per diluted share. - Operating margin was (6.0)% compared to an operating margin of (3.7)%.
- Restaurant contribution margin(1) was
11.2% compared to a restaurant contribution margin of14.7% . - Six company-owned restaurants closed in the fourth quarter of 2024. One franchise restaurant opened and three franchise restaurants closed in the fourth quarter of 2024.
Key highlights for fiscal year 2024 compared to fiscal year 2023 include:
- Total revenue decreased
2.0% to$493.3 million from$503.4 million . - Comparable restaurant sales decreased
1.5% system-wide, including a1.8% decrease for company-owned restaurants and a0.2% decrease for franchise restaurants. - Net loss was
$36.2 million , or$0.80 loss per diluted share, compared to net loss of$9.9 million , or$0.21 loss per diluted share. - Operating margin was (5.6)% compared to an operating margin of (1.0)%.
- Restaurant contribution margin(1) was
13.2% compared to a restaurant contribution margin of14.9% . - Ten new company-owned restaurants opened and thirteen closed in 2024. Three franchise restaurants opened and seven closed in 2024. The Company sold six restaurants to a franchisee in 2024. The Company had 463 restaurants at the end of 2024, comprised of 371 company-owned and 92 franchise restaurants.
_____________________
(1) Restaurant contribution margin is a non-GAAP measure. A reconciliation of operating income (loss) to restaurant contribution is included in the accompanying financial data. See “Non-GAAP Financial Measures.”
Drew Madsen, Chief Executive Officer of Noodles & Company, remarked, “Fourth quarter earnings reflected an improvement over our third quarter trends driven by a combination of factors, including the rollout of our three new menu items, the promotional offers that we ran during the first two months of the quarter, and the renewed momentum in our third-party delivery channel. We are especially pleased to share that the previously reported improving sales and traffic trends during the fourth quarter of 2024 have accelerated in the first quarter of 2025. Through the first eight weeks of the first quarter of 2025, we have delivered positive traffic and comparable restaurant sales growth over
Liquidity Update
As of December 31, 2024, the Company had available cash and cash equivalents of
Business Outlook
The Company is providing the following expectations for the full fiscal year 2025:
- Total revenue of
$503 million to$512 million , including mid-single digit comparable restaurant sales growth; - Restaurant level contribution margins of
12.5% to14.0% ; - General and administrative expenses of
$49 million to$52 million , inclusive of stock-based compensation expense of approximately$3.7 million ; - Depreciation and amortization of
$27 million to$29 million ; - Net interest expense of
$8 million to$10 million ; - New restaurant openings: two company-owned;
- Restaurant closures: 12 to 15 company-owned restaurants and four franchised restaurants; and
- Capital expenditures of
$11 million to$13 million .
The Company believes that a quantitative reconciliation of the Company’s non-GAAP financial measures guidance to the most comparable financial measures calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to provide guidance for various reconciling items that are outside of the Company’s control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. A reconciliation of certain non-GAAP financial measures would also require the Company to predict the timing and likelihood of outcomes that determine future impairments and the tax benefit thereof. None of these measures, nor their probable significance, can be reliably quantified. These non-GAAP financial measures have limitations as analytical financial measures, as discussed below in the section entitled “Non-GAAP Financial Measures.” In addition, the guidance with respect to non-GAAP financial measures is a forward-looking statement, which by its nature involves risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statement, as discussed below in the section entitled “Forward-Looking Statements.”
Key Definitions
Average Unit Volumes — represent the average annualized sales of all company-owned restaurants for a given time period. AUVs are calculated by dividing restaurant revenue by the number of operating days within each time period and multiplying by the number of operating days we have in a typical year. Based on this calculation, temporarily closed restaurants are excluded from the definition of AUV, however restaurants with temporarily reduced operating hours are included. This measurement allows management to assess changes in consumer traffic and per person spending patterns at our restaurants. In addition to the factors that impact comparable restaurant sales, AUVs can be further impacted by effective real estate site selection and maturity and trends within new markets.
Comparable Restaurant Sales — represents year-over-year sales comparisons for the comparable restaurant base open for at least 18 full periods. This measure highlights performance of existing restaurants, as the impact of new restaurant openings is excluded. Changes in comparable restaurant sales are generated by changes in traffic, which we calculate as the number of entrées sold and changes in per-person spend, calculated as sales divided by traffic.
Restaurant Contribution and Restaurant Contribution Margin — restaurant contribution represents restaurant revenue less restaurant operating costs, which are costs of sales, labor, occupancy and other restaurant operating items. Restaurant contribution margin represents restaurant contribution as a percentage of restaurant revenue. Restaurant contribution and restaurant contribution margin are presented because they are widely-used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency and performance. Management also uses restaurant contribution and restaurant contribution margin as metrics to evaluate the profitability of incremental sales at our restaurants, restaurant performance across periods, and restaurant financial performance compared with competitors. See “Non-GAAP Financial Measures” below.
EBITDA and Adjusted EBITDA — EBITDA represents net income (loss) before interest expense, provision (benefit) for income taxes and depreciation and amortization. Adjusted EBITDA represents net income (loss) before interest expense, provision (benefit) for income taxes, depreciation and amortization, restaurant impairments, loss on disposal of assets, net lease exit costs (benefits), gain (loss) on sale of restaurants, severance and executive transition costs and stock-based compensation. EBITDA and Adjusted EBITDA are presented because: (i) management believes they are useful measures for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and restaurant impairments, asset disposals and closure costs, and (ii) management uses them internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare performance to that of competitors. See “Non-GAAP Financial Measures” below.
Adjusted Net Income (Loss) — represents net income (loss) before restaurant impairments, net lease exit costs (benefits), gain( (loss) on sale of restaurants, severance and executive transition costs and loss on debt modifications and the tax effects of such adjustments. Adjusted net income (loss) is presented because management believes it helps convey supplemental information to investors regarding the Company’s performance, excluding the impact of special items that affect the comparability of results in past quarters and expected results in future quarters. See “Non-GAAP Financial Measures” below.
Conference Call
Noodles & Company will host a conference call to discuss its fourth quarter and fiscal year 2024 financial results on Thursday, March 6, 2025 at 4:30 p.m. EST. The conference call can be accessed live over the phone by dialing 201-389-0920. A replay will be available after the call and can be accessed by dialing 412-317-6671; the passcode is 13750888. The replay will be available until Thursday, March 20, 2025. The conference call will also be webcast live from the Company’s corporate website at investor.noodles.com, under the “Events & Presentations” page. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded.
Non-GAAP Financial Measures
To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company uses the following non-GAAP financial measures: EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, restaurant contribution and restaurant contribution margin (collectively, the “non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or to be superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. However, the Company recognizes that non-GAAP financial measures have limitations as analytical financial measures. The Company compensates for these limitations by relying primarily on its GAAP results and using non-GAAP metrics only supplementally. There are numerous of these limitations, including that: adjusted EBITDA does not reflect the Company’s capital expenditures or future requirements for capital expenditures; adjusted EBITDA does not reflect interest expense or the cash requirements necessary to service interest or principal payments, associated with our indebtedness; adjusted EBITDA does not reflect depreciation and amortization, which are non-cash charges, although the assets being depreciated and amortized will likely have to be replaced in the future, and do not reflect cash requirements for such replacements; adjusted EBITDA does not reflect the cost of stock-based compensation; adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; adjusted net income (loss) does not reflect cash expenditures, or future requirements, for lease termination payments and certain other expenses associated with reduced new restaurant development; and restaurant contribution and restaurant contribution margin are not reflective of the underlying performance of our business because corporate-level expenses are excluded from these measures. When analyzing the Company’s operating performance, investors should not consider non-GAAP financial metrics in isolation or as substitutes for net income (loss) or cash flow from operations, or other statement of operations or cash flow statement data prepared in accordance with GAAP. The non-GAAP financial measures used by the Company in this press release may be different from the measures used by other companies.
For more information on the non-GAAP financial measures, please see the “Reconciliation of Non-GAAP Measurements to GAAP Results” tables in this press release. These accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.
About Noodles & Company
Since 1995, Noodles & Company has been serving guests Uncommon Goodness, offering globally inspired flavors and classic comfort dishes. From indulgent Wisconsin Mac & Cheese to craveable Japanese Pan Noodles, Noodles & Company delivers a world of flavor in every bowl. With over 460 restaurants and 7,000 passionate team members, the brand is committed to nourishing and inspiring every guest who walks through its doors. To learn more or find the location nearest you, visit www.noodles.com.
Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties such as the number of restaurants we intend to open, projected capital expenditures and estimates of our effective tax rates. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms and similar expressions intended to identify forward-looking statements. These statements reflect our current views with respect to future events and are based on currently available operating, financial and competitive information. Examples of forward-looking statements include all matters that are not historical facts, such as statements regarding expectations with respect to our business strategy and priorities, unit growth and planned restaurant openings, projected capital expenditures, potential volatility through 2024 due to the current high inflationary environment, including the effects on consumer sentiment and behavior, and all of the statements within “Business Outlook.” Our actual results may differ materially from those anticipated in these forward-looking statements due to reasons including, but not limited to, our ability to execute on our strategic priorities; our ability to sustain our overall growth, including, our digital sales growth; our ability to open new restaurants on schedule and cause those newly opened restaurants to be successful; our ability to achieve and maintain increases in comparable restaurant sales and to successfully execute our business strategy, including new restaurant initiatives and operational strategies to improve the performance of our restaurant portfolio; the success of our marketing efforts, including our ability to introduce new products and pricing strategies; economic conditions including any impact from inflation, an economic recession or a high interest rate environment; price and availability of commodities and other supply chain challenges; our ability to adequately staff our restaurants; changes in labor costs; our ability to qualify for continued listing on the Nasdaq Global Select Market; other conditions beyond our control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting our customers or food supplies; and consumer reaction to industry related public health issues and health pandemics, including perceptions of food safety. For additional information on these and other factors that could affect the Company’s forward-looking statements, see the Company’s risk factors, as they may be amended from time to time, set forth in its filings with the SEC, included in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as may be required by applicable law or regulation.
| Noodles & Company Consolidated Statements of Operations (in thousands, except share and per share data, unaudited) | |||||||||||||||
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||||||||
| December 31, 2024 | January 2, 2024 | December 31, 2024 | January 2, 2024 | ||||||||||||
| Revenue: | |||||||||||||||
| Restaurant revenue | $ | 119,200 | $ | 121,819 | $ | 483,097 | $ | 492,648 | |||||||
| Franchise royalties and fees, and other | 2,574 | 2,501 | 10,174 | 10,757 | |||||||||||
| Total revenue | 121,774 | 124,320 | 493,271 | 503,405 | |||||||||||
| Costs and expenses: | |||||||||||||||
| Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | |||||||||||||||
| Cost of sales | 32,469 | 30,920 | 123,692 | 124,102 | |||||||||||
| Labor | 38,467 | 38,982 | 154,258 | 157,608 | |||||||||||
| Occupancy | 11,381 | 11,574 | 46,366 | 45,925 | |||||||||||
| Other restaurant operating costs | 23,518 | 22,396 | 95,032 | 91,559 | |||||||||||
| General and administrative | 11,321 | 13,865 | 50,824 | 51,833 | |||||||||||
| Depreciation and amortization | 7,081 | 7,479 | 29,066 | 26,792 | |||||||||||
| Pre-opening | 121 | 573 | 1,543 | 2,215 | |||||||||||
| Restaurant impairments, closure costs and asset disposals | 4,780 | 3,087 | 20,268 | 8,400 | |||||||||||
| Total costs and expenses | 129,138 | 128,876 | 521,049 | 508,434 | |||||||||||
| Loss from operations | (7,364 | ) | (4,556 | ) | (27,778 | ) | (5,029 | ) | |||||||
| Interest expense, net | 2,323 | 1,602 | 8,381 | 4,803 | |||||||||||
| Loss before income taxes | (9,687 | ) | (6,158 | ) | (36,159 | ) | (9,832 | ) | |||||||
| Provision for (benefit from) income taxes | 6 | (21 | ) | 54 | 24 | ||||||||||
| Net loss | $ | (9,693 | ) | $ | (6,137 | ) | $ | (36,213 | ) | $ | (9,856 | ) | |||
| Loss per share, combined | |||||||||||||||
| Basic | $ | (0.21 | ) | $ | (0.14 | ) | $ | (0.80 | ) | $ | (0.21 | ) | |||
| Diluted | $ | (0.21 | ) | $ | (0.14 | ) | $ | (0.80 | ) | $ | (0.21 | ) | |||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 45,692,943 | 44,955,913 | 45,465,727 | 45,863,719 | |||||||||||
| Diluted | 45,692,943 | 44,955,913 | 45,465,727 | 45,863,719 | |||||||||||
| Noodles & Company Consolidated Selected Balance Sheet Data and Selected Operating Data (in thousands, except restaurant activity, unaudited) | ||||||
| As of | ||||||
| December 31, 2024 | January 2, 2024 | |||||
| Balance Sheet Data | ||||||
| Total current assets | $ | 20,192 | $ | 22,624 | ||
| Total assets | 324,648 | 368,095 | ||||
| Total current liabilities | 65,717 | 67,514 | ||||
| Total long-term debt | 100,742 | 80,218 | ||||
| Total liabilities | 330,227 | 340,935 | ||||
| Total stockholders’ (deficit) equity | (5,579 | ) | 27,160 | |||
| Fiscal Quarter Ended | |||||||||||||||||||
| December 31, 2024 | October 1, 2024 | July 2, 2024 | April 2, 2024 | January 2, 2024 | |||||||||||||||
| Selected Operating Data | |||||||||||||||||||
| Restaurant Activity: | |||||||||||||||||||
| Company-owned restaurants at end of period | 371 | 377 | 379 | 380 | 380 | ||||||||||||||
| Franchise restaurants at end of period | 92 | 94 | 94 | 89 | 90 | ||||||||||||||
| Revenue Data: | |||||||||||||||||||
| Company-owned average unit volumes | $ | 1,310 | $ | 1,272 | $ | 1,322 | $ | 1,253 | $ | 1,314 | |||||||||
| Franchise average unit volumes | $ | 1,292 | $ | 1,243 | $ | 1,300 | $ | 1,223 | $ | 1,232 | |||||||||
| Company-owned comparable restaurant sales | 0.5 | % | (3.4 | )% | 1.3 | % | (5.7 | )% | (4.3 | )% | |||||||||
| Franchise comparable restaurant sales | 1.9 | % | (2.9 | )% | 4.7 | % | (4.5 | )% | (3.6 | )% | |||||||||
| System-wide comparable restaurant sales | 0.8 | % | (3.3 | )% | 2.0 | % | (5.4 | )% | (4.2 | )% | |||||||||
Reconciliations of Non-GAAP Measurements to GAAP Results
| Noodles & Company Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (in thousands, unaudited) | |||||||||||||||
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||||||||
| December 31, 2024 | January 2, 2024 | December 31, 2024 | January 2, 2024 | ||||||||||||
| Net loss | $ | (9,693 | ) | $ | (6,137 | ) | $ | (36,213 | ) | $ | (9,856 | ) | |||
| Depreciation and amortization | 7,081 | 7,479 | 29,066 | 26,792 | |||||||||||
| Interest expense, net | 2,323 | 1,602 | 8,381 | 4,803 | |||||||||||
| Provision for (benefit from) income taxes | 6 | (21 | ) | 54 | 24 | ||||||||||
| EBITDA | $ | (283 | ) | $ | 2,923 | $ | 1,288 | $ | 21,763 | ||||||
| Restaurant impairments(1) | 2,178 | 1,747 | 13,441 | 2,987 | |||||||||||
| Loss on disposal of assets | 1,031 | 597 | 3,079 | 1,979 | |||||||||||
| Lease exit costs, net | 546 | 66 | 924 | 396 | |||||||||||
| Gain on sale of restaurants | — | — | (490 | ) | — | ||||||||||
| Severance and executive transition costs | 201 | 1,368 | 1,677 | 1,559 | |||||||||||
| Stock-based compensation expense | 339 | 765 | 3,680 | 4,346 | |||||||||||
| Adjusted EBITDA | $ | 4,012 | $ | 7,466 | $ | 23,599 | $ | 33,030 | |||||||
______________________________
(1) Restaurant impairments in all periods presented above include amounts related to restaurants previously impaired.
EBITDA and adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net income (loss) or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies. These measures are presented because we believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for evaluating our ongoing results of operations.
EBITDA is calculated as net income (loss) before interest expense, provision (benefit) for income taxes and depreciation and amortization. Adjusted EBITDA further adjusts EBITDA to reflect the eliminations shown in the table above.
EBITDA and adjusted EBITDA are presented because: (i) we believe they are useful measures for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and restaurant impairments, gain (loss) on disposal of assets, net lease exit costs (benefits), loss on sale of restaurants and (ii) we use adjusted EBITDA internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare our performance to that of our competitors. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structures and cost of capital (which affect interest expense and income tax rates) and differences in book depreciation of property, plant and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management believes that adjusted EBITDA facilitates company-to-company comparisons within our industry by eliminating some of these foregoing variations. Adjusted EBITDA as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items.
| Noodles & Company Reconciliation of Net Loss to Adjusted Net Loss (in thousands, except share and per share data, unaudited) | |||||||||||||||
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||||||||
| December 31, 2024 | January 2, 2024 | December 31, 2024 | January 2, 2024 | ||||||||||||
| Net loss | $ | (9,693 | ) | $ | (6,137 | ) | $ | (36,213 | ) | $ | (9,856 | ) | |||
| Restaurant impairments(1) | 2,178 | 1,747 | 13,441 | 2,987 | |||||||||||
| Lease exit costs, net | 546 | 66 | 924 | 396 | |||||||||||
| Gain on sale of restaurants | — | — | (490 | ) | — | ||||||||||
| Severance and executive transition costs | 201 | 1,368 | 1,677 | 1,559 | |||||||||||
| Tax effect of adjustments(2) | 46 | — | — | — | |||||||||||
| Adjusted net loss | $ | (6,722 | ) | $ | (2,956 | ) | $ | (20,661 | ) | $ | (4,914 | ) | |||
| Loss per share | |||||||||||||||
| Basic | $ | (0.21 | ) | $ | (0.14 | ) | $ | (0.80 | ) | $ | (0.21 | ) | |||
| Diluted | $ | (0.21 | ) | $ | (0.14 | ) | $ | (0.80 | ) | $ | (0.21 | ) | |||
| Adjusted loss per share | |||||||||||||||
| Basic | $ | (0.15 | ) | $ | (0.07 | ) | $ | (0.45 | ) | $ | (0.11 | ) | |||
| Diluted | $ | (0.15 | ) | $ | (0.07 | ) | $ | (0.45 | ) | $ | (0.11 | ) | |||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 45,692,943 | 44,955,913 | 45,465,727 | 45,863,719 | |||||||||||
| Diluted | 45,692,943 | 44,955,913 | 45,465,727 | 45,863,719 | |||||||||||
_____________________________
Adjusted net income (loss) is a supplemental measure of financial performance that is not required by or presented in accordance with GAAP. We define adjusted net income (loss) as net income (loss) before restaurant impairments, net lease exit costs (benefits), gain (loss) on sale of restaurants, severance and executive transition costs and loss on debt modification, and the tax effects of such adjustments. Adjusted net income (loss) is presented because management believes it helps convey supplemental information to investors regarding our performance, excluding the impact of special items that affect the comparability of results in past quarters to expected results in future quarters. Adjusted net income (loss) as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted net income (loss) should not be construed as an inference that our future results will be unaffected by excluded or unusual items. Our management uses this non-GAAP financial measure to analyze changes in our underlying business from quarter to quarter based on comparable financial results.
(1) Restaurant impairments in all periods presented above include amounts related to restaurants previously impaired.
(2) The tax impact of the other adjustments is immaterial while the Company has a full valuation allowance and significant net operating losses.
| Noodles & Company Reconciliation of Operating Loss to Restaurant Contribution (in thousands, unaudited) | |||||||||||||||
| Fiscal Quarter Ended | Fiscal Year Ended | ||||||||||||||
| December 31, 2024 | January 2, 2024 | December 31, 2024 | January 2, 2024 | ||||||||||||
| Loss from operations | $ | (7,364 | ) | $ | (4,556 | ) | $ | (27,778 | ) | $ | (5,029 | ) | |||
| Less: Franchising royalties and fees | 2,574 | 2,501 | 10,174 | 10,757 | |||||||||||
| Plus: General and administrative | 11,321 | 13,865 | 50,824 | 51,833 | |||||||||||
| Depreciation and amortization | 7,081 | 7,479 | 29,066 | 26,792 | |||||||||||
| Pre-opening | 121 | 573 | 1,543 | 2,215 | |||||||||||
| Restaurant impairments, closure costs and asset disposals | 4,780 | 3,087 | 20,268 | 8,400 | |||||||||||
| Restaurant contribution | $ | 13,365 | $ | 17,947 | $ | 63,749 | $ | 73,454 | |||||||
| Restaurant contribution margin | 11.2 | % | 14.7 | % | 13.2 | % | 14.9 | % | |||||||
_____________________________
Restaurant contribution represents restaurant revenue less restaurant operating costs, which are the cost of sales, labor, occupancy and other operating items. Restaurant contribution margin represents restaurant contribution as a percentage of restaurant revenue. Restaurant contribution and restaurant contribution margin are non-GAAP measures that are neither required by, nor presented in accordance with GAAP, and the calculations thereof may not be comparable to similar measures reported by other companies. These measures are supplemental measures of the operating performance of our restaurants and are not reflective of the underlying performance of our business because corporate-level expenses are excluded from these measures.
Restaurant contribution and restaurant contribution margin have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Management does not consider these measures in isolation or as an alternative to financial measures determined in accordance with GAAP. However, management believes that restaurant contribution and restaurant contribution margin are important tools for investors and other interested parties because they are widely-used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency and performance. Management also uses these measures as metrics to evaluate the profitability of incremental sales at our restaurants, restaurant performance across periods, and restaurant financial performance compared with competitors.
FAQ
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