5 days ago
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.
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