[Management View]
Noodles & Company reported a slight decrease in revenue but highlighted rising sales momentum driven by menu innovation, expanded digital engagement, and strategic closures of underperforming restaurants. The company emphasized its commitment to delivering great food and an exceptional guest experience, with a focus on sustaining growth.

[Outlook]
The company provided full-year 2025 guidance with expected revenue between $492 million and $495 million, comp sales growth of 3.6% to 4.2%, and a restaurant contribution margin of 12.3%-12.7%. Strategic alternatives, including refinancing or financial transactions, are under review with no decisions or timetable announced.

[Financial Performance]
Noodles & Company reported a net loss of $9.2 million in Q3 2025, compared to a net loss of $6.8 million in Q3 2024. System-wide comparable restaurant sales increased by 4.0%, with company-owned restaurants up 4.0% and franchise restaurants up 4.3%. Adjusted EBITDA increased by 33% to $6.5 million.

[Q&A Highlights]
Question 1: Can you discuss the success of the Delicious Duos and its impact on value perception and repeat frequency?
Answer: Delicious Duos, launched in late July, filled a value void and is mixing around 4% to 5% depending on the restaurant. It attracts both new and existing guests, with teams upselling to other menu items. The value scores indicate it's working against competition.

Question 2: How do you differentiate organic traffic from sales transfer due to store closures?
Answer: October saw a 1% lift from closures, with positive traffic outside of sales transfer. Despite heavy discounting, positive traffic in October is encouraging.

Question 3: What are your thoughts on making Ramen a permanent menu category?
Answer: It's too early to decide on a permanent menu spot for Ramen. The current LTO is successful, with trial and repeat business. The future of Ramen on the menu is promising, and the promotion will be monitored.

Question 4: What was the benefit of underperforming closures on margins this quarter?
Answer: Closures provided a $300,000 benefit to adjusted EBITDA in Q3, with more closures occurring in September and October.

Question 5: How does the check benefit from lapping promotions affect Q4?
Answer: The impact of last year's discounts falls off post-Thanksgiving, leading to a more normal year-over-year check increase in December. This is embedded in the full-year and Q4 guidance.

[Sentiment Analysis]
Analysts expressed positive sentiment, acknowledging the company's strategic efforts and momentum. Management maintained a confident tone, emphasizing strategic initiatives and growth potential.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|---------------------------------|---------|---------|
| Net Loss | $9.2M | $6.8M |
| Comp Sales Growth | 4.0% | N/A |
| Adjusted EBITDA | $6.5M | $4.9M |
| Restaurant Contribution Margin | 13.2% | 12.8% |

[Risks and Concerns]
The company faces risks from rising food costs, inflation, and the impact of restaurant closures. The strategic review process introduces uncertainty, and the net loss highlights ongoing financial challenges.

[Final Takeaway]
Noodles & Company is navigating a challenging environment with strategic closures and menu innovations driving growth. The company's focus on digital engagement and value offerings is resonating with guests, leading to positive sales momentum. While financial challenges persist, the strategic review process and operational improvements position the company for potential long-term success.