NOODLES & Co 10-Q for FY2025 Q1

NOODLES & Co (NDLS)

10-Q 2025-05-08 For: 2025-04-01

Added on April 10, 2026

About this 10-Q

NOODLES & Co filed this 10-Q on May 8, 2025, covering the quarter ended April 1, 2025 (FY2025 Q1).

Headline figures

Quarter ended April 1, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $123.79M; up 2.0% from $121.4M a year earlier
Net loss: $9.06M; compared with a net loss of $6.14M a year earlier
Diluted EPS: -$0.20; compared with -$0.14 a year earlier

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Delaware						84-1303469
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


520 Zang Street, Suite D
Broomfield, CO						80021
(Address of principal executive offices)						(Zip Code)


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share	NDLS	Nasdaq Global Select Market


Class						Outstanding at May 2, 2025
Class A Common Stock, $0.01 par value per share						45,943,640 shares


			Page
PART I
	Item 1.	Financial Statements (unaudited)	2
		Condensed Consolidated Balance Sheets	2
		Condensed Consolidated Statements of Operations	3
		Condensed Consolidated Statements of Stockholders’ Equity	4
		Condensed Consolidated Statements of Cash Flows	5
		Notes to Condensed Consolidated Financial Statements	6
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	14
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	24
	Item 4.	Controls and Procedures	24
PART II
	Item 1.	Legal Proceedings	25
	Item 1A.	Risk Factors	25
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
	Item 3.	Defaults Upon Senior Securities	25
	Item 4.	Mine Safety Disclosures	25
	Item 5.	Other Information	25
	Item 6.	Exhibits	26
SIGNATURES			27


	April 1, 2025		December 31, 2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	1,396	$	1,149
Accounts receivable	4,111		4,058
Inventories	11,112		10,500
Prepaid expenses and other assets	3,554		4,156
Income tax receivable	335		329
Total current assets	20,508		20,192
Property and equipment, net	137,579		137,237
Operating lease assets, net	152,022		157,821
Goodwill	7,154		7,154
Intangibles, net	497		495
Other assets, net	1,690		1,749
Total long-term assets	298,942		304,456
Total assets	$	319,450	$	324,648
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	17,135	$	13,194
Accrued payroll and benefits	11,246		7,632
Accrued expenses and other current liabilities	11,626		12,836
Current operating lease liabilities	30,107		32,055

Total current liabilities	70,114		65,717
Long-term debt, net	100,623		100,742
Long-term operating lease liabilities, net	151,437		156,723
Deferred tax liabilities, net	299		276
Other long-term liabilities	10,882		6,769
Total liabilities	333,355		330,227

Stockholders’ deficit:
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of April 1, 2025 and December 31, 2024; no shares issued or outstanding	—		—
Common stock—$0.01 par value, 180,000,000 shares authorized as of April 1, 2025 and December 31, 2024; 48,367,511 issued and 45,943,640 outstanding as of April 1, 2025 and 48,161,878 issued and 45,738,007 outstanding as of December 31, 2024	484		482
Treasury stock, at cost, 2,423,871 shares as of April 1, 2025 and December 31, 2024	(35,000)		(35,000)
Additional paid-in capital	214,125		213,396
Accumulated deficit	(193,514)		(184,457)
Total stockholders’ deficit	(13,905)		(5,579)
Total liabilities and stockholders’ deficit	$	319,450	$	324,648


	Fiscal Quarter Ended
	April 1, 2025		April 2, 2024
Revenue:
Restaurant revenue	$	121,326	$	119,003
Franchising royalties and fees, and other	2,468		2,392
Total revenue	123,794		121,395
Costs and expenses:
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Cost of sales	32,293		29,701
Labor	39,396		38,417
Occupancy	11,494		11,829
Other restaurant operating costs	25,656		23,464
General and administrative	12,810		13,044
Depreciation and amortization	7,090		7,370
Pre-opening	151		437
Restaurant impairments, closure costs and asset disposals	1,291		1,229
Total costs and expenses	130,181		125,491
Loss from operations	(6,387)		(4,096)

Interest expense, net	2,647		1,979
Loss before income taxes	(9,034)		(6,075)
Provision for income taxes	23		65
Net loss	$	(9,057)	$	(6,140)
Loss per Class A and Class B common stock, combined
Basic	$	(0.20)	$	(0.14)
Diluted	$	(0.20)	$	(0.14)
Weighted average shares of Class A and Class B common stock outstanding, combined:
Basic	45,783,353		45,079,355
Diluted	45,783,353		45,079,355


	Fiscal Quarter Ended
	Common Stock(1)			Treasury			Additional Paid-In Capital		Accumulated Deficit		Total Stockholders’ Equity (Deficit)
	Shares	Amount		Shares	Amount
Balance—December 31, 2024	48,161,878	$	482	2,423,871	$	(35,000)	$	213,396	$	(184,457)	$	(5,579)
Stock plan transactions and other	205,633	2		—	—		(53)		—		(51)

Stock-based compensation expense	—	—		—	—		782		—		782
Net loss	—	—		—	—		—		(9,057)		(9,057)
Balance—April 1, 2025	48,367,511	$	484	2,423,871	$	(35,000)	$	214,125	$	(193,514)	$	(13,905)

Balance—January 2, 2024	47,413,585	$	474	2,423,871	$	(35,000)	$	209,930	$	(148,244)	$	27,160
Stock plan transactions and other	356,635	4		—	—		(265)		—		(261)
Stock-based compensation expense	—	—		—	—		1,145		—		1,145
Net loss	—	—		—	—		—		(6,140)		(6,140)
Balance—April 2, 2024	47,770,220	$	478	2,423,871	$	(35,000)	$	210,810	$	(154,384)	$	21,904


	April 1, 2025		December 31, 2024
Delivery program receivables	$	2,037	$	1,306
Vendor rebate receivables	426		763
Franchise receivables	877		1,127
Other receivables	771		862
Accounts receivable	$	4,111	$	4,058


	April 1, 2025		December 31, 2024
Prepaid insurance	$	227	$	950
Prepaid occupancy related costs	810		850

Prepaid expenses	2,499		2,332
Other current assets	18		24
Prepaid expenses and other assets	$	3,554	$	4,156


	April 1, 2025		December 31, 2024
Leasehold improvements	$	228,949	$	230,211
Furniture, fixtures and equipment	183,231		177,070
Construction in progress	3,590		4,463
	415,770		411,744
Accumulated depreciation and amortization	(278,191)		(274,507)
Property and equipment, net	$	137,579	$	137,237


	April 1, 2025		December 31, 2024
Accrued payroll and related liabilities	$	8,604	$	4,489
Accrued bonus	1,016		1,405
Insurance liabilities	1,626		1,738
Accrued payroll and benefits	$	11,246	$	7,632


	April 1, 2025		December 31, 2024
Gift card liability	$	2,043	$	2,000
Occupancy related	1,123		1,926
Utilities	1,304		1,340
Current portion of finance lease liability	1,730		1,976

Other restaurant expense accruals	1,806		1,842
Other corporate expense accruals	3,620		3,752
Accrued expenses and other current liabilities	$	11,626	$	12,836


Classification		April 1, 2025		December 31, 2024
Assets
Operating	Operating lease assets, net	$	152,022	$	157,821
Finance	Property and equipment	8,191		3,807
Total leased assets		$	160,213	$	161,628
Liabilities
Current lease liabilities
Operating	Current operating lease liabilities	$	30,107	$	32,055
Finance	Accrued expenses and other current liabilities	1,730		1,976
Long-term lease liabilities
Operating	Long-term operating lease liabilities	151,437		156,723
Finance	Other long-term liabilities	6,324		2,014
Total lease liabilities		$	189,598	$	192,768


	April 1, 2025		April 2, 2024
Interest paid (net of amounts capitalized)	$	2,238	$	1,773
Income taxes paid	7		25
Purchases of property and equipment accrued in accounts payable	2,392		4,595


	Fiscal Quarter Ended
	April 1, 2025	April 2, 2024
Company-Owned Restaurant Activity
Beginning of period	371	380
Openings	1	2
Closures	(3)	(2)

Restaurants at end of period	369	380
Franchise Restaurant Activity
Beginning of period	92	90
Openings	—	1

Closures	(1)	(2)
Restaurants at end of period	91	89
Total restaurants	460	469


Exhibit Number						Description of Exhibit
31.1						Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2						Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1						Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104.0						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


NOODLES & COMPANY
By:			/s/ MIKE HYNES
			Mike Hynes Chief Financial Officer (principal financial officer and duly authorized signatory for the registrant)
Date			May 8, 2025


			(a)			Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;



	April 1, 2025		December 31, 2024
Other segment disclosures (in thousands):
Total long-lived assets (1)	$	289,601	$	295,058
Total assets	$	319,450	$	324,648


	Fiscal Quarter Ended						Increase / (Decrease)
	April 1, 2025			April 2, 2024			$		%

	(in thousands, unaudited)
Revenue:
Restaurant revenue	$	121,326		$	119,003		$	2,323	2.0	%
Franchising royalties and fees, and other	2,468			2,392			76		3.2	%
Total revenue	123,794			121,395			2,399		2.0	%
Costs and expenses:
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Cost of sales	32,293			29,701			2,592		8.7	%
Labor	39,396			38,417			979		2.5	%
Occupancy	11,494			11,829			(335)		(2.8)	%
Other restaurant operating costs	25,656			23,464			2,192		9.3	%
General and administrative	12,810			13,044			(234)		(1.8)	%
Depreciation and amortization	7,090			7,370			(280)		(3.8)	%
Pre-opening	151			437			(286)		(65.4)	%
Restaurant impairments, closure costs and asset disposals	1,291			1,229			62		5.0	%
Total costs and expenses	130,181			125,491			4,690		3.7	%
Loss from operations	(6,387)			(4,096)			(2,291)		55.9	%

Interest expense, net	2,647			1,979			668		33.8	%
Loss before taxes	(9,034)			(6,075)			(2,959)		48.7	%
Provision for income taxes	23			65			(42)		(64.6)	%
Net loss	$	(9,057)		$	(6,140)		$	(2,917)	47.5	%
Company-owned:
Average unit volume	$	1,314		$	1,253		$	61	4.9	%
Comparable restaurant sales	4.7		%	(5.7)		%


			(b)			Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


			(c)			Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


			(d)			Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and


			(a)			All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and


			(b)			Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


			/s/ DREW MADSEN
			Drew Madsen
			Chief Executive Officer (Principal Executive Officer)


			/s/ MIKE HYNES
			Mike Hynes
			Chief Financial Officer
			(Principal Financial Officer)


			By:						/s/ DREW MADSEN
			Name:						Drew Madsen
			Title:						Chief Executive Officer