Noodles & Company (NDLS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue declined 2% year-over-year to $121.8 million, with system-wide comparable sales up 0.8% and traffic nearly flat at -0.1%.

• Net loss widened to $9.7 million in Q4 and $36.2 million for the year, with operating margin at (6.0)% in Q4.

• Sales momentum accelerated into Q1 2025, with comp sales growth over 3% and positive traffic, outperforming the fast casual benchmark for four consecutive months.

• Major menu transformation underway, with nine new dishes launching in March and nearly two-thirds of the menu new or improved by end of Q2 2025.

• Leadership changes include a new President/COO and recent executive hires, supporting operational excellence and brand relaunch.

Financial highlights

• Q4 2024 total revenue was $121.8 million, down 2% year-over-year; full-year revenue was $493.3 million, down 2%.

• System-wide comp restaurant sales increased 0.8% in Q4, with company-owned up 0.5% and franchise up 1.9%.

• Restaurant-level contribution margin was 11.2% in Q4, down from 14.7% in Q4 2023; full-year margin was 13.2%.

• Net loss for Q4 was $9.7 million ($0.21 per diluted share), compared to $6.1 million loss ($0.14 per share) last year; full-year net loss was $36.2 million ($0.80 per share).

• Adjusted EBITDA was $4 million in Q4 (down from $7.5 million) and $23.6 million for the year (down from $33 million).

Outlook and guidance

• 2025 full-year revenue expected between $503–$512 million, with mid-single-digit comp sales growth.

• Restaurant contribution margin guidance of 12.5%–14.0%, including a 100 basis point permanent investment in food quality.

• G&A expenses projected at $49–$52 million; depreciation and amortization at $27–$29 million; interest expense at $8–$10 million.

• Plan to open two new company-owned restaurants and close 12–15 company-owned and four franchise restaurants in 2025; capex estimated at $11–$13 million.

• Anticipates debt reduction in the back half of 2025 due to lower capital expenditures.