Latest news with #DrewMadsen
Yahoo
2 days ago
- Business
- Yahoo
Noodles & Company adjusts new menu in response to consumer sentiment
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Consumer sentiment has changed since Noodles & Company rolled out its new menu on March 12. Restaurant goers are even more price sensitive than before, and that has meant the fast-casual chain has needed to readjust its brand positioning and introduce a value-oriented combo meal. Outgoing chief executive officer Drew Madsen said that, although same-store sales were up by 1.5% for the quarter ended July 1 — perfectly respectable in the current climate — he was disappointed in the results and is taking measures to improve traffic and sales which appear to be bearing fruit. 'While we delivered positive same-store sales in a choppy consumer environment for our segment, overall results were below our expectations going into the quarter,' he told investors during a conference call after market on Wednesday. Although comps were up, that was due in part to the higher prices tied to new menu items: Average checks were up by 4%, but traffic was down by 2.5% 'We have identified what we believe drove the traffic shortfall versus our expectations and have been working quickly to address it,' said Madsen, who last week announced his resignation as CEO effective Aug. 31. He will be succeeded by current chief operating officer Joe Christina. Madsen said the decline in traffic was due to 'unexpected decline in guest value perception following our menu launch in March, something we did not see during our test market phase last year. 'This is due in part to a change in the consumer environment over the past 12 months and the growing consumer demand for increased value and affordability, which is evidenced by the heightened discounting and promotions across the QSR, fast-casual, and casual dining segments of our industry,' he said. Noodles & Company responded with the July 30 introduction of its Delicious Duos value offering of a small entrée and side starting at $9.95. It seems to have worked, at least in the first two weeks of its existence. Since the launch of Delicious Duos, same-store sales jumped by 5%. Traffic also improved to flat, and in the past few days leading up to the earnings call was actually up by between 1% and 2%. And the menu rolled out on March 12 has had positive results, Madsen said, with a J-curve in guest satisfaction, meaning it went down at first but then bounced back to higher than before the menu launch. All of the chain's four mac & cheese items — its top sellers — score above average in terms of taste and value perception, especially the new Garlic Bacon Crunch and Buffalo Ranch options. But there were some operational challenges, and one new dish, the Green Goddess Salad, was ultimately pulled from the menu 'because the recipe complexity made it difficult to execute consistently and too often left our guests dissatisfied,' Madsen said. Noodles & Company also reworked some of the new recipes to replace higher-cost secondary ingredients with less expensive ones, though still premium compared to the ingredients used before the relaunch. The changes so far have 'had no perceived impact on taste or overall guest satisfaction,' Madsen said. The chain has rolled out a new coaching program to improve operations and is working on creating six 'operations excellence' coaches who will work with general managers and their teams 'to continually improve the guest experience.' Looking forward, the next limited-time offer, to be launched early in the fourth quarter of this year is a chile-garlic ramen for which the noodles will be sautéed in butter chile garlic soy sauce and tossed with Napa and red cabbage and spinach and topped with scallions, Parmesan cheese and Asian spices for $8.95. During the second quarter the company opened one restaurant and closed six restaurants and franchisees closed two restaurants. All told, nine company-owned restaurants were closed so far this year and more closures are to come, according to chief financial officer Michael Hynes. During last quarter's earnings call, he said the company would close up to 21 underperforming restaurants, and that number has since grown to 49. 'We recently expanded our efforts to close underperforming restaurants and now expect to close a total of 28 to 32 company-owned restaurants in 2025. In addition, we expect to close 12 to 17 company owned restaurants in 2026.' Looking ahead, Hynes projected total revenue for the year at between $487 million and $495 million with same-store sales growth between 2.5% and 4%. Incoming CEO Christina, who will assume that role at the end of the month, said in the conference call, 'I am honored to lead Noodles & Company in this next chapter as we welcome 30 years of brand strength and connection. 'I am focused on enhancing the guest experience, strengthening operational execution, driving increased traffic, and expanding unit-level margins. 'Backed by our dedicated teams, franchisees and partners, we will strive to deliver meaningful value to our guests and stakeholders. 'I look forward to working with Drew during this transition period in August and speaking with you all next quarter.' Noodles & Company Q2 by the numbers: • Revenue decreased 0.7% to $126.4 million • Same-store sales increased 1.5% • Net income was -$17.6 million, or a loss of 38 cents per share, compared to -13.6 million or -30 cents per share in the same quarter last year • Restaurant margin was down 270 basis points to 12.8% from 15.5% in Q2 2024. Contact Bret Thorn at Find him on social media: @foodwriterdiary Related Articles Noodles & Company promotes Joseph Christina from president to CEO Noodles & Company rolls out long-anticipated new menu
Newsweek
3 days ago
- Business
- Newsweek
Popular Fast Food Chain to Close Dozens of Locations: What to Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Noodles & Company is set to close up to 32 of its restaurants across the United States by the end of 2025, the restaurant chain announced on Wednesday. The Colorado-based chain said in its 2025 second-quarter financial results that it will shutter between 28 and 32 company-owned restaurants this year and will open two sites. It comes as the company reported nationwide comparable restaurant sales growth, but a net loss and tighter liquidity. Newsweek reached out to Noodles & Company for comment via email outside of regular working hours. Why It Matters The expected 2025 closures represent around a 7 percent reduction in the company's footprint. The chain, which has been running since 1995, has around 400 restaurants across the U.S., according to the company. Several other American restaurant chains, including Denny's, Applebee's, TGI Fridays and Red Lobster, have also closed dozens of branches or filed for bankruptcy within the last year. Stock image of pasta. Stock image of pasta. GDA/AP What To Know Noodles & Company reported on Wednesday that comparable restaurant sales increased 1.5 percent overall in the second quarter, including a 1.5 percent increase at company-owned restaurants and a 1.6 percent increase at franchised sites. But total revenue decreased in the second quarter by 0.7 percent to $127.4 million. Net losses also stood at $17.6 million, compared to a loss of $13.6 million in the second quarter of 2024. As of July 1, the company had $2.3 million in cash and cash equivalents and outstanding debt of $108.3 million. In the second quarter, the company closed six company-owned restaurants and two franchise restaurants, but opened one new company-owned site. The restaurant closures come amid an attempted turnaround at the company, which included an overhaul of its menu in March. What People Are Saying Drew Madsen, Noodles & Company chief executive officer, said in a statement: "We are encouraged to have delivered positive comparable restaurant sales of 1.5 percent in the second quarter despite a challenging consumer environment that has led to heightened discounting and promotional activity across the industry. Our sales and traffic moderated after the initial successful rollout of our new menu due to the strong value-conscious climate as well as slower guest adoption of the upgrades made to some of our historic menu items. "We have been moving decisively to address these factors, particularly around guest value perception. Our new Delicious Duos value-focused platform, that launched at the beginning of August, is off to a great start. Comparable restaurant sales have increased to an average of positive five percent over the past two weeks, demonstrating that our value-focused initiatives are resonating with guests." Mike Hynes, Noodles & Company chief financial officer, said in a conference call on Wednesday, according to Restaurant Business Magazine: "We're very pleased with the results from closing under-performing restaurants. The closures have removed restaurants with negative cash flow from our system, and post closure, we've seen nearby Noodles restaurants experience an increase in sales and profits." What Happens Next Madsen is stepping down as the company's CEO this month and will be succeeded by Joe Christina, who will oversee the ongoing restaurant closures and openings this year.
Yahoo
4 days ago
- Business
- Yahoo
Starbucks, Krispy Kreme, Noodles, Shake Shack, and Bloomin' Brands Stocks Trade Up, What You Need To Know
What Happened? A number of stocks jumped in the morning session after investors cheered a government report showing that inflation remained steady in July. The steady inflation figures have fueled expectations that the Federal Reserve may soon consider an interest rate cut to stimulate the economy, a move that would likely benefit consumer discretionary spending, including dining out. The July Consumer Price Index (CPI) rose 2.7% from a year earlier, meeting the previous month's pace and coming in slightly below economists' expectations of a 2.8% increase. On a monthly basis, the CPI rose 0.2%, a slowdown from the 0.3% increase seen in June. While the cost of dining out continued to climb, rising 0.3% in July, this was offset by a 0.1% dip in grocery prices, contributing to the overall stable inflation picture. The market's positive reaction sent major stock indexes, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, soaring. This optimism spilled over into the restaurant sector, which has been grappling with a challenging macroeconomic environment marked by high costs and concerns over consumer traffic. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Traditional Fast Food company Starbucks (NASDAQ:SBUX) jumped 3.4%. Is now the time to buy Starbucks? Access our full analysis report here, it's free. Traditional Fast Food company Krispy Kreme (NASDAQ:DNUT) jumped 5.9%. Is now the time to buy Krispy Kreme? Access our full analysis report here, it's free. Modern Fast Food company Noodles (NASDAQ:NDLS) jumped 6%. Is now the time to buy Noodles? Access our full analysis report here, it's free. Modern Fast Food company Shake Shack (NYSE:SHAK) jumped 3.1%. Is now the time to buy Shake Shack? Access our full analysis report here, it's free. Sit-Down Dining company Bloomin' Brands (NASDAQ:BLMN) jumped 3.6%. Is now the time to buy Bloomin' Brands? Access our full analysis report here, it's free. Zooming In On Noodles (NDLS) Noodles's shares are extremely volatile and have had 81 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 5 days ago when the stock gained 3% on the news that the company announced a change in leadership and postponed its second-quarter earnings report. The fast-casual restaurant chain appointed Joseph D. Christina as its new President and CEO, following the resignation of Drew Madsen for personal medical reasons. In conjunction with the leadership news, the company also rescheduled its second-quarter 2025 financial results conference call, pushing it from August 6th to August 13th. The sudden executive change combined with the delayed financial update likely created uncertainty among investors. This news also followed a period where earnings per share estimates experienced several downward revisions. Noodles is up 70.2% since the beginning of the year, but at $1 per share, it is still trading 41.5% below its 52-week high of $1.71 from August 2024. Investors who bought $1,000 worth of Noodles's shares 5 years ago would now be looking at an investment worth $121.36. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-08-2025
- Business
- Yahoo
Noodles & Company promotes Joseph Christina to CEO
US-based fast-casual chain Noodles & Company has announced a leadership transition. Joseph D Christina, who currently holds the position of president and chief operating officer, is set to take over as president and CEO on 31 August 2025. His appointment also includes a position on the board of directors. Christina will take the helm from Drew Madsen, who will step down from the CEO position for personal reasons. Madsen will continue to aid in the leadership transition during August, and will maintain his involvement with the company as a member of the board. With a quick-service and fast-casual dining sector background, Christina has experience in market development, human resources, operations, financial management, marketing and franchise leadership. His career began at Burger King and has seen him progress ij 29 years from restaurant manager to the senior vice-president of US franchise operations for the West Division. Following Burger King, he held the position of executive vice-president of US operations at Church's Chicken, before becoming its president, CEO and a board member. His latest leadership role was as Tijuana Flats' CEO, where he played a pivotal role in steering the company through industry challenges, modernising its offerings, and expanding its market presence, according to the company's release. Christina stated: 'I am grateful for the opportunity to have joined the company under Drew's leadership and look forward to leading a laser focus on operational excellence as well as enhancing our menu offerings, to unlock long-term value for our guests, team members, franchisees and shareholders.' Noodles & Company launched an April 2025 taste tour featuring new flavours and exclusive daily offers for its rewards members. The company also expanded its presence with the opening of a new restaurant in Williston, North Dakota, lin 2024. The new location is operated by franchise partner Little Deep Pasta, a subsidiary of Cultivate Solutions, and is their 16th Noodles & Company establishment. "Noodles & Company promotes Joseph Christina to CEO" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-08-2025
- Business
- Yahoo
Noodles & Company promotes Joseph Christina from president to CEO
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Noodles & Company has promoted Joseph Christina from president and chief operating officer to president and chief executive officer. Christina will also join the board of directors, effective Aug. 31, the fast-casual chain said Tuesday. He replaces Drew Madsen, who is stepping down for personal medical reasons, the company said, but will facilitate the transition and remain on the board of directors. Christina, formerly the CEO of Tijuana Flats, joined the fast-casual noodle chain in February. The chain based in Broomfield, Colo., also announced a week delay in its quarterly earnings call, now scheduled for Aug. 13 after market. According to a filing with the Securities & Exchange Commission, Christina will receive an annual base salary of $550,000 — a $100,000 raise — and an annual bonus opportunity for the fiscal year of 100% that salary, prorated to his Feb. 2025 hire date. He will also receive 250,000 restricted stock units as an initial equity grant. Madsen previously had been president of Panera Bread. He also spent 15 years at Darden Restaurants, including a nearly 10-year stint as president and chief operating officer. He was named interim CEO in November of 2023, after the resignation of Dave Boennighausen. Madsen was named permanent CEO on March 6, 2024. Since then he has overseen the launch of a new menu in March of 2025 as well as the installation of digital menu boards. He also instituted operational efficiencies and updated the company's training processes. Christina began his career at Burger King, where he progressed from restaurant manager to franchisee to vice president of global operations and training to senior vice president of franchise operations for the West Division. He went on to join Church's Chicken, now Church's Texas Chicken, as executive vice president of U.S. operations. He went on to be the fried chicken chain's chief executive officer before joining Tijuana Flats. In a release announcing the transition, Christina said he was looking forward to his new role. 'I'm honored to lead Noodles & Company at such a pivotal moment,' Christina said in a statement. 'This is a standout brand with a unique, revitalized menu, strong culture, and tremendous runway for growth. I am grateful for the opportunity to have joined the company under Drew's leadership and look forward to leading a laser-focus on operational excellence as well as enhancing our menu offerings, to unlock long-term value for our guests, team members, franchisees and shareholders.' Chairman of the board Jeff Jones thanked Madsen for his service and expressed enthusiasm about Christina taking on a new role. 'On behalf of the entire Board, I want to thank Drew for his steady leadership and service,' Jones said in a statement. 'We're pleased he will continue to provide guidance as a board director, given his vast industry experience and leadership as we have undertaken our brand revitalization work to date, and he has our full support.' Of Christina, he said 'Joe's experience as a CEO at multiple restaurant concepts, combined with his leadership style and passion for operations excellence, will set Noodles up well for future success.' Contact Bret Thorn at Related Articles Joe Christina joins Noodles & Company as president and chief operating officer Noodles & Company rolls out long-anticipated new menu Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
