Latest news with #Noodles&Company
USA Today
3 days ago
- Business
- USA Today
Noodles & Company closing up to 32 locations after revenue decline
A national noodle chain is closing down dozens of locations amid a decline in revenue. Noodles & Company announced on Wednesday, Aug. 13, through its 2025 second-quarter financial results news release, that it would be closing 28 to 32 company-owned locations by the year's end. The Broomfield, Colorado-based chain has been operating since 1995 and specializes in classic pasta and noodle dishes, such as pad thai and basil pesto cavatappi. A delicious duo, the company's signature combo, comes with a small entree, protein and a side beginning at $9.95. Noodles & Company reported a net loss of $17.6 million compared to a net loss of $13.6 million from the same time last year, according to the company's 2025 second-quarter financial results. Additionally, revenue decreased 0.7% to $126.4 million from $127.4 million. Here is what to know about Noodles & Company's upcoming location closures. How many Noodles & Company restaurants closed in 2025? So far, the company has closed six restaurants in 2025 and opened one new location. An additional two franchise locations have also shut down. The noodle chain has more than 400 locations operating around the United States. Noodles & Company CEO Drew Madsen blamed the business's economic headwinds on 'the strong value-conscious climate' and a 'slower guest adoption of the upgrades made to some of our historic menu items.' The company completed an overhaul of its menu earlier this year. 'We've been moving decisively to address these factors, particularly around guest value perception,' said Madsen, who announced he'd be stepping down as CEO. He will be succeeded by Joe Christina, the company's current chief operating officer. 'Joe Christina is absolutely the right leader to guide this brand forward,' Madsen said in a statement. What is next for Noodles & Company? Noodles & Company is planning to close another 12 to 17 restaurants in 2026, while simultaneously opening an additional two locations. The company did not reveal which locations are likely to close and where the new restaurants will open. USA TODAY contacted Noodles & Company for comment on Friday, Aug. 15, but has not received a response. Michelle Del Rey is a trending news reporter at USA TODAY. Reach her at mdelrey@
Newsweek
5 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.
Miami Herald
12-06-2025
- Business
- Miami Herald
Famous fast-food chain unveils bold new menu to win back customers
Expanding its menu from basic dishes to chef-curated creations may seem like an unexpected choice for a fast-casual restaurant. However, when aiming to attract a bigger audience, range is key if a chain needs to appeal to more taste buds. Don't miss the move: Subscribe to TheStreet's free daily newsletter A slowdown in consumer spending and inflation have started to affect even the most popular restaurant chains, causing many to close locations due to underperformance and sales declines. Related: McDonald's brings back unexpected breakfast item after 6 years Companies tend to make this move as a last resort to mitigate financial strain and reduce costs, so no more unnecessary debt accumulates. However, one restaurant chain made a strategic move that has worked in its favor, as it has managed to turn around its declining numbers. Image source: Shutterstock Noodles & Company has partnered with Food Network to release four new noodle-based dishes, renowned as the network's favorites. These new entrées were hand-picked by Food Network and include Basil Pesto Cavatappi, Buffalo Chicken Ranch Mac & Cheese, Rigatoni Rosa with Parmesan Chicken, and Lemon Garlic Shrimp Scampi. More Food News: Popular chicken chain menu brings back fan-favorite value combosPopular chicken chain launches its version of McDonald's wrapsPopular fast-food burger chain aims major comeback amid closures "We're excited to introduce guests to a lineup of reimagined favorites and bold new flavors that showcase our culinary expertise," said Noodles & Company SVP of Marketing Stephen Kennedy in a press release. "It's an honor to have four of our most popular noodle bowls selected by the experts at Food Network as 'Food Network Favorites.' These dishes promise to deliver comfort, indulgence, and creativity in every bowl - just as we always strive to do," he added. To strengthen its business, Noodles & Company (NDLS) initiated a menu revamp in March, adding new dishes and improving fan favorites to better meet consumer demands and attract new audiences. Related: Popular fast-food burger chain to open first store in new market This menu transformation resonated well with consumers, driving an increase in sales during the first quarter of 2025. Total revenues were up 2% compared to the prior year, and same-store sales increased 4.4% system-wide. However, in May 2025, Noodles & Company shared plans to close some of its more than 450 restaurants, including approximately 13 to 17 company-owned and four franchise locations in 2025. The chain attributed these closures to higher food costs and increased marketing expenses. This new round of menu improvements in partnership with Food Network might be just what Noodles & Company needs to prevent further restaurant closures. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
11-06-2025
- Business
- Yahoo
NDLS Q1 Earnings Call: Menu Transformation Fuels Sales Growth Amid Margin Pressures
Casual restaurant chain Noodles & Company (NASDAQ:NDLS) met Wall Street's revenue expectations in Q1 CY2025, with sales up 2% year on year to $123.8 million. The company's outlook for the full year was close to analysts' estimates with revenue guided to $507.5 million at the midpoint. Its non-GAAP loss of $0.20 per share was 81.8% below analysts' consensus estimates. Is now the time to buy NDLS? Find out in our full research report (it's free). Revenue: $123.8 million vs analyst estimates of $123.6 million (2% year-on-year growth, in line) Adjusted EPS: -$0.20 vs analyst expectations of -$0.11 (81.8% miss) Adjusted EBITDA: $1.61 million vs analyst estimates of $5.35 million (1.3% margin, 69.8% miss) The company reconfirmed its revenue guidance for the full year of $507.5 million at the midpoint Operating Margin: -5.2%, down from -3.4% in the same quarter last year Locations: 460 at quarter end, down from 469 in the same quarter last year Same-Store Sales rose 4.4% year on year (-5.4% in the same quarter last year) Market Capitalization: $38.94 million Noodles & Company's first quarter results reflected a significant shift in sales trends, with management attributing performance to the comprehensive menu transformation and increased marketing efforts. CEO Drew Madsen cited the introduction of five new dishes and four reimagined recipes as key factors in driving higher guest traffic and average check size, noting, 'Our new menu is selling better than it did in test market, particularly mac and cheese.' The company also invested in a broad-based media campaign and extensive employee training to support the rollout. CFO Michael Hynes emphasized that these initiatives led to higher one-time costs, including training and marketing expenses, which weighed on margins during the quarter. The company's focus on brand relevance and operational execution was evident in increased loyalty program signups and improved same-store sales performance. Looking forward, management's guidance centers on sustaining elevated sales growth through ongoing marketing investment and maintaining momentum from the new menu. CEO Drew Madsen explained the company is 'updating our media mix model and looking at whether additional investment like that throughout the course of the year would make sense,' signaling a willingness to adjust strategy based on consumer response. CFO Michael Hynes outlined plans to keep capital expenditures low and target further cost savings, aiming to strengthen the balance sheet and return to free cash flow positivity in the second half of the year. While management remains confident in the foundation built by the recent menu relaunch, they acknowledge the need for continued innovation and operational discipline to navigate input cost pressures and uncertain consumer sentiment. Management pointed to the comprehensive menu overhaul, targeted marketing, and operational investments as the main drivers of sales growth, while also flagging the impact of one-time costs on near-term profitability. Menu transformation impact: The rollout of five new dishes and four enhanced recipes in March was described by CEO Drew Madsen as 'the most comprehensive menu transformation in our nearly 30-year history,' and drove significant increases in both guest traffic and check size. The new mac and cheese offerings notably exceeded internal sales expectations. Marketing and brand relaunch: The company roughly doubled its marketing investment to promote the new menu, expanding beyond traditional paid search and social channels to include connected TV and digital out-of-home advertising. Early-stage campaigns, including influencer outreach and PR, led to double-digit increases in brand awareness and digital engagement, as well as loyalty program signups. Operational training investment: To prepare for the menu rollout, Noodles & Company instituted a four-week training program for all restaurant roles, achieving a 95% completion rate. This one-time training investment ensured consistent execution but contributed to higher labor and operating costs in the quarter. Cost pressures and margin decline: CFO Michael Hynes identified higher food costs from new menu items and increased third-party delivery fees as factors pressuring margins. Additionally, one-time expenses for training and marketing added to cost inflation, resulting in a lower restaurant-level margin compared to the prior year. Store network optimization: The company closed more locations than it opened in the quarter, reflecting ongoing efforts to optimize the restaurant footprint and reduce occupancy costs. Management noted that this approach, along with targeted capital spending reductions, is designed to support financial stability while focusing on core markets. Management expects future performance to hinge on sustained sales momentum, cost discipline, and strategic marketing investments as they navigate margin headwinds and evolving consumer trends. Sales momentum from new menu: Management emphasized the importance of maintaining guest interest in new and improved menu offerings, with CEO Drew Madsen stating sustained top-line sales growth is vital to supporting the business model and potential future unit growth. The ongoing success of the menu transformation and associated promotions, especially through digital and loyalty channels, is seen as central to revenue growth. Cost controls and capital allocation: CFO Michael Hynes outlined plans to keep capital expenditures low and pursue further cost savings, targeting over $5 million in annual savings. Management intends to limit new openings while closing underperforming stores, with a focus on strengthening the balance sheet and achieving free cash flow positivity in the second half of the year. Input cost and tariff risks: The company anticipates continued exposure to food cost inflation and tariffs on select imported ingredients, though over half of food purchases are locked in at fixed rates. Management expects these factors to be partially offset by operational efficiencies and smart sourcing strategies but acknowledges they could pressure margins if inflation persists. Looking ahead, the StockStory team will be monitoring (1) sustained customer engagement and repeat traffic following the menu transformation, (2) margin recovery as one-time launch costs subside and cost controls take effect, and (3) the pace of store closures relative to openings as the company optimizes its footprint. Effective execution on marketing strategies and response to input cost pressures will also be key signposts for progress. Noodles currently trades at a forward EV-to-EBITDA ratio of 1.3×. Should you double down or take your chips? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. 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Yahoo
10-06-2025
- Business
- Yahoo
Noodles & Company's New Menu Features "Food Network Favorites" Curated Selections
Four Dishes Hand-Selected from Noodles & Company's Bold New Menu Featured Nationwide Beginning May 29 BROOMFIELD, Colo., June 10, 2025 /PRNewswire/ -- Noodles & Company (NASDAQ: NDLS), the fast-casual favorite known for its globally inspired noodle bowls, has partnered with Food Network, the authority in all things flavor, to unveil four entrees that have been crowned "Food Network Favorites." This partnership between two established leaders celebrates the creativity, culinary craftsmanship, and unbeatable value that Noodles & Company is known for, now curated by some of the most trusted experts in the industry. In March, Noodles unveiled its reinvented menu, featuring bold new flavors and reimagined classics at the forefront. With more than two-thirds of the menu new or improved, this reinvention is more than just a refresh; it's a testament to Noodles' culinary craftsmanship, designed to satisfy every guest. Through this dedication to bold, expertly crafted dishes, Noodles is not only delighting longtime fans but also attracting new guests and new fans. "As the authority on all things flavor, Food Network is always looking to highlight delicious food finds for our fans, and this partnership is another way to deliver on that mission," said Lauren Burack, Senior Vice President, Marketing, Food Network & HGTV. "Noodles & Company excels in crafting delicious, noodle-focused dishes, and the new menu reflects that, but these four stood out as clear favorites to our team, showcasing the perfect combination of craveable taste and incredible value." Meet The "Food Network Favorites"Hand-picked by Food Network, Noodles & Company's "Food Network Favorites" are tailored to perfection and include: Basil Pesto Cavatappi: A fan-favorite made even better, now featuring more of its signature basil pesto sauce, fire-roasted tomatoes, and aged Parmesan for deeper flavor in every forkful. Buffalo Chicken Ranch Mac & Cheese: Elbow noodles in creamy cheddar and jack cheese sauce, topped with parmesan-crusted chicken, tangy Buffalo sauce, green onions, crispy onions, and a drizzle of ranch. A flavor explosion that had the pros coming back for seconds. Rigatoni Rosa with Parmesan Chicken: Reimagined with heartier rigatoni noodles, a richer spicy tomato cream sauce, slow-roasted tomatoes, and 18-month aged Parmesan. A comforting classic turned up. Lemon Garlic Shrimp Scampi: Fettuccine noodles in a savory garlic butter sauce with sautéed shrimp, cherry tomatoes, spinach, artichoke hearts, and a splash of lemon. Fresh, light, and full of vibrant summer flavor. "Food Network knows food, and Noodles & Company knows noodles—making this partnership a natural fit," said Stephen Kennedy, SVP of Marketing at Noodles & Company. "We're excited to introduce guests to a lineup of reimagined favorites and bold new flavors that showcase our culinary expertise. It's an honor to have four of our most popular noodle bowls selected by the experts at Food Network as 'Food Network Favorites.' These dishes promise to deliver comfort, indulgence, and creativity in every bowl—just as we always strive to do." Crafted to Impress. Priced to you're craving comfort or new flavors, Noodles & Company offers elevated dishes made with high-quality ingredients, all at a reasonable price. With easy online ordering and fast, reliable delivery, enjoying chef-crafted meals at home, in the office, or on the go has never been easier. Experience the bold new flavors, exclusively at Noodles & Company locations nationwide. About Noodles & Company Since 1995, Noodles & Company has been on a mission to own the noodle, serving up craveable flavors and fresh, made-to-order dishes that bring comfort, adventure, and discovery to every bowl. From indulgent, cheesy Mac to globally inspired favorites like Japanese Pan Noodles, the menu is crafted for every taste, with options to satisfy, surprise, and inspire. With more than 460 restaurants and a team of passionate noodle lovers, Noodles is a brand built on flavor, innovation, and a culture that celebrates its people. Recognized as one of America's Favorite Restaurants and Best Loyalty Programs by Newsweek in 2024 and 2025, and one of the Most Trustworthy Companies in America, Noodles continues to redefine what it means to be a fast- casual favorite. The brand has also been honored as one of Forbes' Best Employers for Diversity (2021–2024) and Best Employers for Women (2021, 2024), while QSR has named it one of the Best Brands to Work For in both 2022 and 2023. Noodles believes in the power of great food, great people, and great experiences. That means investing in industry-leading team member benefits, fostering an inclusive culture, and continuously evolving to meet the needs of its guests. To learn more and to find the location nearest you, visit About Food Network Food Network is a unique lifestyle network, website and magazine that connects viewers to the power and joy of food. The network strives to be viewers' best friend in food and is committed to leading by teaching, inspiring, empowering and entertaining through its talent and expertise. Food Network is distributed to more than 74 million U.S. households and draws an average of 50 million unique web users monthly with a social footprint of 71 million, while Food Network Magazine reaches 11 million readers. Food Network is part of Warner Bros. Discovery (NASDAQ: WBD), a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of content and brands across television, film and streaming. Available in more than 220 countries and territories and 50 languages, Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products which also include: Discovery Channel, Max, discovery+, CNN, DC, Eurosport, HBO, HBO Max, HGTV, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, MotorTrend, Animal Planet, Science Channel, Warner Bros. Film Group, Warner Bros. Television Group, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more information, please visit Noodles & Company Media Contact:Danielle Moore, press@ Food Network Media Contact:Danielle McLaughlin, View original content to download multimedia: SOURCE Noodles & Company
