Restaurant chain Noodles & Co Q2 revenue misses estimates

Noodles & Co

13/08/2025 21:16

Overview

Noodles & Co Q2 revenue fell 0.7% to $126.4 mln, missing estimates, per LSEG data

Adjusted EBITDA missed analyst expectations, per LSEG data

Comparable restaurant sales rose 1.5% despite challenging consumer environment

Outlook

Company expects 2025 revenue of $487 mln to $495 mln

Noodles & Co sees 2025 comparable sales growth of 2.5% to 4.0%

Company anticipates 2025 restaurant contribution margins of 11.8% to 12.6%

Noodles & Co plans 2 new company-owned restaurant openings in 2025

Result Drivers

COMPARABLE SALES - Comparable restaurant sales increased 1.5% system-wide, driven by new menu rollout and value-focused initiatives, per CEO Drew Madsen

VALUE PERCEPTION - Efforts to improve guest value perception through the Delicious Duos platform showed positive early results, with recent sales averaging a 5% increase

CHALLENGING ENVIRONMENT - Company faced a challenging consumer environment with heightened discounting and promotional activity impacting sales and traffic

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$126.40 mln
$131.60 mln (2 Analysts)
Q2 Adjusted EPS
Miss
-$0.12
-$0.05 (1 Analyst)
Q2 EPS
-$0.38
Q2 Net Income
-$17.60 mln
Q2 Adjusted EBITDA
Miss
$6 mln
$8.10 mln (2 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy."

Wall Street's median 12-month price target for Noodles & Co is $2.75, about 60% above its August 12 closing price of $1.10

Press Release: ID:nGNX54X4Hr

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)