Q2 2025 Noodles & Co Earnings Call Transcript
Key Points
- Noodles & Co (NDLS) reported a positive same-store sales growth of 1.5% for the second quarter, outperforming many in the fast casual segment.
- The introduction of the Delicious Duos value platform has shown strong initial response, contributing to improved sales and traffic trends.
- The company's new menu, including the signature Mac & Cheese dishes, has been well-received, with significant growth in sales and high ratings for taste and value.
- Digital engagement has increased, with a 2% year-over-year traffic increase on digital platforms and a 4% increase in rewards member check-ins.
- The company has implemented an operations excellence coaching program to improve operational execution and guest experience, which is expected to enhance performance.
- Overall results for the second quarter were below expectations, with a total revenue decrease of 0.7% compared to last year.
- The company experienced a decline in guest value perception following the March menu launch, impacting traffic negatively.
- Net loss for the second quarter was $17.6 million, an increase from the $13.6 million loss in the same period last year.
- The restaurant level contribution margin decreased to 12.8% from 15.5% in the second quarter of 2024.
- Noodles & Co (NDLS) revised its full-year guidance, no longer expecting to be free cash flow positive in 2025, and has increased the number of underperforming restaurant closures planned for the year.
Good afternoon, and welcome to Noodles & Company's second quarter 2025 earnings conference call. All participants are now in a listen earning mode. As a reminder, this call is being recorded.
I would now like to introduce Noodles Company Chief Financial Officer, Mike Hynes. Please go ahead.
Thank you, and good afternoon everyone. Welcome to our second quarter of 2025 earnings call. Here with me this afternoon is Drew Madsen, our Chief Executive Officer; and Joe Christina, our President and Chief Operating Officer.
I'd like to start by going over a few regulatory matters. During the call, we may make forward-looking statements regarding future events or the future financial performance of the company. Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act.
Such statements are only projections and actual events or results could differ from those projections due to a number of risks and uncertainties,
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