Noodles & Company Showcases 2024 Financial Results
Noodles & Company (NASDAQ: NDLS) recently disclosed its financial outcomes for the fourth quarter and the entire fiscal year of 2024. This update also included a business outlook for 2025, shedding light on the company's future direction.
Fourth Quarter Highlights
During the fourth quarter of 2024, the company experienced a total revenue of $121.8 million, which represented a decrease of 2.0% compared to the same period in the previous year when revenue was $124.3 million. Despite this overall dip, comparable restaurant sales showcased resilience, growing by 0.8% system-wide.
Key Quarterly Metrics
- Total revenue fell to $121.8 million, down from $124.3 million.
- Comparable sales rose by 0.8% system-wide; company-owned restaurants saw a 0.5% gain, while franchise restaurants rose by 1.9%.
- The net loss was $9.7 million, translating into a loss of $0.21 per diluted share, compared to a net loss of $6.1 million or a $0.14 loss per diluted share the previous year.
- Operating margin registered at (6.0%), a decline from (3.7%).
- Restaurant contribution margin dropped to 11.2%, compared to 14.7% a year prior.
Annual Overview
Examining the full fiscal year of 2024, total revenue decreased by 2.0% to $493.3 million from $503.4 million in the preceding year. Over the year, comparable restaurant sales also saw a decline of 1.5% across the system.
Annual Performance Indicators
- Total revenue registered at $493.3 million, compared to $503.4 million.
- Comparable restaurant sales dipped by 1.5% overall, with company-owned and franchise restaurants reflecting decreases of 1.8% and 0.2%, respectively.
- For fiscal 2024, the net loss expanded to $36.2 million or $0.80 loss per diluted share, significantly higher than the net loss of $9.9 million or $0.21 loss per diluted share from 2023.
- Operating margins fell to (5.6%), a drop from (1.0%).
- Restaurant contribution margin for the year was recorded at 13.2%, down from 14.9% the previous year.
- The company opened 10 new company-owned restaurants, while 13 were closed over the period.
Strategic Outlook for the Future
Following these results, Drew Madsen, CEO of Noodles & Company, emphasized the positive momentum as they entered 2025. He expressed optimism regarding the initial weeks of the first quarter, with trends indicating over 3% growth in traffic and comparable restaurant sales compared to the same period last year.
Upcoming Initiatives
The company is preparing for a significant menu transformation, launching several new dishes supported by robust marketing efforts. This initiative aims to attract customers and enhance sales growth further.
Financial Position Update
As of December 31, 2024, Noodles & Company reported available cash and cash equivalents totalling $1.1 million, along with outstanding debt of $103 million. The company indicated it has $19 million available for future borrowings under its revolving credit facility.
Looking Ahead
Noodles & Company has set expectations for fiscal year 2025, forecasting total revenue between $503 million to $512 million. They anticipate comparable restaurant sales growth in the mid-single digits, while new restaurant openings will be limited to two company-owned establishments.
Key Projections
- Total revenue forecast of $503 million to $512 million.
- Restaurant-level contribution margins expected to range between 12.5% and 14.0%.
- Total general and administrative expenses projected at $49 million to $52 million, including stock-based compensation of approximately $3.7 million.
- Depreciation and amortization costs anticipated to be between $27 million and $29 million.
- Net interest expense estimated to fall between $8 million and $10 million.
- Capital expenditures are expected to be $11 million to $13 million, with anticipated closures of about 12 to 15 company restaurants and four franchised restaurants.
Frequently Asked Questions
What financial results did Noodles & Company report for Q4 2024?
Noodles & Company reported a total revenue of $121.8 million in Q4 2024, down 2.0% from the previous year. The net loss was $9.7 million.
How did Noodles & Company perform over the fiscal year 2024?
The company experienced a total revenue of $493.3 million, a decline from $503.4 million in 2023, with a net loss of $36.2 million.
What is the company’s outlook for 2025?
Noodles & Company expects total revenue to range from $503 million to $512 million in 2025, aiming for mid-single-digit growth in comparable restaurant sales.
How many restaurants did Noodles & Company have by the end of 2024?
By the close of 2024, Noodles & Company had a total of 463 restaurants, comprising 371 company-owned and 92 franchise restaurants.
What initiatives are planned for the upcoming year?
The company plans to initiate a significant menu transformation, introducing multiple new dishes backed by increased marketing efforts and new strategic branding to drive sales.
