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Apr 01, 2025
Noodles & Co Q1 2025 Earnings Report
announced financial results for its first quarter ended April 1, 2025
Key Takeaways
Noodles & Company reported a 2.0% increase in total revenue to $123.8 million for the first quarter of 2025, driven by strong comparable restaurant sales growth of 4.4% system-wide. However, the company experienced a net loss of $9.1 million, wider than the $6.1 million loss in the prior year, and a decrease in restaurant contribution margin to 10.3% from 13.1%.
Total revenue increased by 2.0% to $123.8 million compared to the first quarter of 2024.
System-wide comparable restaurant sales increased by 4.4%, with company-owned restaurants increasing by 4.7% and franchise restaurants by 2.9%.
The net loss for the quarter was $9.1 million, or $0.20 per diluted share, compared to a net loss of $6.1 million, or $0.14 per diluted share, in the same period last year.
Restaurant contribution margin decreased to 10.3% from 13.1% in the first quarter of 2024.
Revenue by Segment
Forward Guidance
For the full year 2025, the Company expects total revenue between $503 million and $512 million, with mid-single digit comparable restaurant sales growth. Restaurant level contribution margins are projected to be between 12.0% and 14.0%.
Positive Outlook
- Expected mid-single digit comparable restaurant sales growth.
- Anticipated total revenue between $503 million and $512 million.
- Focus on new menu and brand strategy to drive relevance and demand.
- Continued growth of loyalty program.
- Emphasis on operations excellence to improve guest experience.
Challenges Ahead
- Revised guidance for restaurant level contribution margins to a slightly lower range (12.0% to 14.0%).
- Increased expected company-owned restaurant closures (13 to 17).
- Anticipated closure of four franchised restaurants.
- Challenging macroeconomic environment noted in the first quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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