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Casual restaurant chain Noodles & Company (NASDAQ:NDLS) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 2% year on year to $123.8 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $507.5 million at the midpoint. Its non-GAAP loss of $0.20 per share was 81.8% below analysts’ consensus estimates.

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Noodles (NDLS) Q1 CY2025 Highlights:

• Revenue: $123.8 million vs analyst estimates of $123.6 million (2% year-on-year growth, in line)

• Adjusted EPS: -$0.20 vs analyst expectations of -$0.11 (81.8% miss)

• Adjusted EBITDA: $2.40 million vs analyst estimates of $5.35 million (1.9% margin, 55.1% miss)

• The company reconfirmed its revenue guidance for the full year of $507.5 million at the midpoint

• Operating Margin: -5.2%, down from -3.4% in the same quarter last year

• Locations: 460 at quarter end, down from 469 in the same quarter last year

• Same-Store Sales rose 4.4% year on year (-5.4% in the same quarter last year)

• Market Capitalization: $46.82 million

Company Overview

Offering pasta, mac and cheese, pad thai, and more, Noodles & Company (NASDAQ:NDLS) is a casual restaurant chain that serves all manner of noodles from around the world.

Sales Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $495.7 million in revenue over the past 12 months, Noodles is a small restaurant chain, which sometimes brings disadvantages compared to larger competitors benefiting from better brand awareness and economies of scale.

As you can see below, Noodles’s 1.3% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was weak as it didn’t open many new restaurants.

This quarter, Noodles grew its revenue by 2% year on year, and its $123.8 million of revenue was in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 2.5% over the next 12 months, similar to its six-year rate. Although this projection suggests its newer menu offerings will catalyze better top-line performance, it is still below the sector average.

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