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a day ago
- Business
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Noodles & Company accelerates closure of underperforming restaurants
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Noodles & Company expects to close a total of 28 to 32 company-owned restaurants this year, CFO Michael Hynes said Wednesday during an earnings call. The company also expects to shutter 12 to 17 company-owned restaurants next year. So far this year, the chain has closed nine company-owned restaurants, and expects to close 13 during the third quarter. The remaining stores slated to close will cease operations during the fourth quarter. The closures come after the chain shuttered 20 stores last year following an initial review of its portfolio during Q2 2024. Other chains, including Wendy's, Denny's and Red Robin have planned or have already closed a number of underperforming restaurants. Dive Insight: The closures so far have improved the performance of Noodles' restaurant system by removing restaurants with negative cash flow, Hynes said. Nearby Noodles locations also saw a boost in sales and profits, he noted. Company-owned units totaled 364 at the end of the second quarter, down from 379 in the year-ago quarter, according to an earnings release. The projected closures will leave the chain with about 340 company-owned units this year. 'The portfolio optimization, reviewed by Mike [Hynes], combined with ongoing cost reductions will give us a stronger and more profitable foundation moving forward,' CEO Drew Madsen said during the call. Noodles remains focused on menu innovation to drive traffic and boost sales amid Madsen's impending departure as CEO. COO Joe Christina will take over the position on Aug. 31, while Madsen will remain on the board of directors. Same-store sales increased 1.5% during the second quarter, which was lower than the company's expectations, Madsen said. After its March menu launch, guest value perception unexpectedly declined, in part due to the changing consumer environment that has driven discounting and promotions within the QSR, fast casual and casual segments, he said. To improve its value perception, the chain rolled out a Duos value platform on July 30 starting at $9.95. Guests can pick from a small noodle bowl, including its mac and cheese items, add a protein and choose a side, such as Caesar salad, garden salad or Lemon Parmesan Broccoli and chicken noodle soup. This platform could help the chain strengthen its lunchtime appeal, and offers an option for a lighter dinner, Madsen said, adding that he expects this platform to be permanent. Recommended Reading Noodles & Company promotes COO to CEO Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
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@ This article originally appeared on USA TODAY: Noodles & Company closing up to 32 locations, CEO stepping down
Yahoo
2 days ago
- Business
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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
Yahoo
2 days ago
- Business
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Noodles & Company reports minor revenue dip in Q2 2025
US-based fast-casual chain Noodles & Company has announced a slight decline in total revenue, reported to be $126.4m, in the second quarter (Q2) ended 1 July 2025. This is 0.7% down from the $127.4m recorded in the same quarter of the previous year. The chain reported a net loss of $17.6m - a $0.38 loss per diluted share - against a net loss of $13.6m, or $0.30 loss per diluted share in Q2 2024. Despite the dip in revenue, the chain saw 1.5% system-wide comparable restaurant sales growth with both company-owned and franchise restaurants contributing to the increase. The operating margin for the quarter was reported at 11.7%, compared to 9% in the previous year's Q2. The restaurant contribution margin also saw a decrease to 12.8% from 15.5%. Adjusted earnings before interest, taxation, depreciation and amortisation were $6m, down from $9.2m in the comparable quarter of 2024. During the quarter, the chain opened a new company-owned restaurant, closed six locations and saw the closure of two franchise restaurants. As of 1 July 2025, Noodles & Company had $2.3m in cash and cash equivalents, with outstanding debt of $108.3m. It has revised its full-year guidance for fiscal 2025, anticipating total revenue to be between $487m and $495m, along with a comparable restaurant sales growth of between 2.5% and 4%. Restaurant-level contribution margins are projected to range from 11.8% to 12.6%, with general and administrative expenses estimated between $48m and $50m. The company also expects to incur depreciation and amortisation costs of $27m to $29m, net interest expenses of $10.5m to $11.5m, and capital expenditures of $12 million to $13m. The forecast includes the opening of two new company-owned restaurants and the closure of between 28 and 32 company-owned restaurants. The chain operates 450 restaurants and employs 7,000. It recently announced a leadership transition, with Joseph D Christina to assume the role of president and CEO on 31 August 2025. Outgoing CEO Drew Madsen stated: "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. 'Our new Delicious Duos value-focused platform, which launched at the beginning of August, is off to a great start. Comparable restaurant sales have increased to an average of positive 5% over the past two weeks, demonstrating that our value-focused initiatives are resonating with guests." "Noodles & Company reports minor revenue dip in Q2 2025" 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.
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
