Noodles & Co Q3 revenue beats expectations

Reuters
Nov 06
Noodles & Co Q3 revenue beats expectations

Overview

  • Noodles & Co Q3 rev decreases 0.5% yr/yr but beats analyst expectations

  • Adjusted EBITDA for Q3 beats analyst expectations, increasing 32.7% yr/yr

  • Company reports Q3 net loss of $9.2 mln, impacted by restaurant impairments

Outlook

  • Noodles & Co expects 2025 revenue between $492 mln and $495 mln

  • Company anticipates 2025 restaurant level margins of 12.3% to 12.7%

  • Noodles & Co plans 31 to 34 company-owned restaurant closures in 2025

Result Drivers

  • MENU ROLLOUT - Co attributes sales growth to new menu rollout and value proposition of Delicious Duos platform

  • RESTAURANT CLOSURES - Co continues to close underperforming restaurants, transferring sales to nearby locations

  • MARKETING AND EXECUTION - Improved marketing and operational execution contributed to positive sales trends

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$122.10 mln

$119.77 mln (2 Analysts)

Q3 Net Income

-$9.20 mln

Q3 Adjusted EBITDA

Beat

$6.50 mln

$6.15 mln (2 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the restaurants & bars peer group is "buy"

  • Wall Street's median 12-month price target for Noodles & Co is $2.00, about 65.8% above its November 4 closing price of $0.68

Press Release: ID:nGNX9xG1kQ

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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