Noodles & Company ( (NDLS) ) has released its Q3 earnings. Here is a breakdown of the information Noodles & Company presented to its investors.
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Noodles & Company is a restaurant chain specializing in a diverse range of noodle dishes, catering to a variety of flavor preferences across its numerous locations in the United States. Operating within the fast-casual dining sector, it offers customers a unique culinary experience with both familiar and innovative noodle-based meals.
In its third quarter of 2024, Noodles & Company reported a 4.0% decrease in total revenue to $122.8 million compared to the same period in 2023, with a net loss of $6.8 million. The company faced several challenges, including a decline in comparable restaurant sales and a reduction in third-party delivery sales, necessitating strategic shifts to improve customer engagement and sales.
Key financial metrics highlighted a decrease in comparable restaurant sales by 3.3% system-wide, and an operating margin drop to negative 3.9%. The restaurant contribution margin also fell to 12.8% from 16.4% in the previous year. Despite these challenges, the company opened four new restaurants, indicating ongoing expansion efforts. Additionally, the company revised its credit agreement to accommodate more flexible financial management.
Looking forward, Noodles & Company remains focused on strategic initiatives to drive long-term growth and shareholder value. It anticipates full-year 2024 revenue between $487 million and $495 million. The company is also planning further restaurant openings and is actively working on enhancing its menu and promotional strategies to improve traffic and sales in the upcoming quarters.
