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Jul 01, 2025
Noodles & Co Q2 2025 Earnings Report
Noodles & Company reported a decrease in total revenue and an increased net loss in Q2 2025 compared to the same period last year, despite positive comparable restaurant sales.
Key Takeaways
Noodles & Company experienced a slight decrease in total revenue to $126.4 million in Q2 2025, down 0.7% from Q2 2024. The company reported a net loss of $17.6 million, or $0.38 per diluted share, which widened from a net loss of $13.6 million in the prior year. Despite these financial declines, system-wide comparable restaurant sales increased by 1.5%.
Total revenue for Q2 2025 was $126.4 million, a 0.7% decrease from $127.4 million in Q2 2024.
The company reported a net loss of $17.6 million, or $0.38 per diluted share, compared to a net loss of $13.6 million, or $0.30 per diluted share, in Q2 2024.
System-wide comparable restaurant sales increased by 1.5%, with company-owned restaurants up 1.5% and franchise restaurants up 1.6%.
Restaurant contribution margin decreased to 12.8% from 15.5% in the second quarter of 2024.
Revenue by Segment
Forward Guidance
Noodles & Company revised its fiscal year 2025 guidance, expecting total revenue between $487 million and $495 million, with comparable restaurant sales growth of 2.5% to 4.0%. Restaurant level contribution margins are projected to be 11.8% to 12.6%. The company plans to open two new company-owned restaurants and close 28 to 32 company-owned restaurants.
Positive Outlook
- Expected total revenue for fiscal year 2025 is between $487 million and $495 million.
- Anticipated comparable restaurant sales growth of 2.5% to 4.0% for the full year 2025.
- Restaurant level contribution margins are projected to be 11.8% to 12.6%.
- New Delicious Duos value-focused platform is off to a great start, with comparable restaurant sales increasing to an average of positive 5% over the past two weeks.
- Confidence in new CEO Joe Christina to drive sustainable growth.
Challenges Ahead
- Guidance for fiscal year 2025 was revised, implying a potential adjustment to previous expectations.
- Significant number of company-owned restaurant closures expected (28 to 32).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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