Noodles's Q2 Earnings Call: Our Top 5 Analyst Questions
Noodles & Company’s second quarter results disappointed investors, with revenue and profit metrics missing Wall Street expectations and the stock declining sharply after the report. Management attributed the underperformance primarily to weaker guest traffic and a misalignment between new menu pricing and consumer value perception. CEO Andrew Madsen acknowledged that the nationwide launch of the revamped menu, intended to improve food quality and brand identity, did not deliver the expected lift in guest visits, noting, “We experienced an unexpected decline in guest value perception following our menu launch in March.”
Is now the time to buy NDLS? Find out in our full research report (it’s free).
Noodles (NDLS) Q2 CY2025 Highlights:
- Revenue: $126.4 million vs analyst estimates of $131.6 million (flat year on year, 3.9% miss)
- Adjusted EPS: -$0.12 vs analyst estimates of -$0.06 (significant miss)
- Adjusted EBITDA: $6.02 million vs analyst estimates of $7.61 million (4.8% margin, 20.9% miss)
- The company dropped its revenue guidance for the full year to $491 million at the midpoint from $507.5 million, a 3.3% decrease
- Operating Margin: -0.9%, down from 0.4% in the same quarter last year
- Locations: 453 at quarter end, down from 473 in the same quarter last year
- Same-Store Sales rose 1.5% year on year, in line with the same quarter last year
- Market Capitalization: $33.07 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Noodles’s Q2 Earnings Call
No analyst Q&A was included in the company’s earnings call transcript. As such, no individual analyst questions or attributions can be reported for this quarter.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will watch (1) the sustained impact of the Duos platform and other value-focused menu initiatives on both guest traffic and check size, (2) progress on the closure of underperforming restaurants and the resulting effects on overall profitability, and (3) operational improvements in menu execution and cost control. New product launches, especially limited time offers, will also be important signposts for potential recovery.
Noodles currently trades at $0.70, down from $1.01 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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