Overview

* Noodles & Co ( NDLS ) Q2 revenue fell 0.7% to $126.4 mln, missing estimates, per LSEG data

* Adjusted EBITDA missed analyst expectations, per LSEG data

* Comparable restaurant sales rose 1.5% despite challenging consumer environment

Outlook

* Company expects 2025 revenue of $487 mln to $495 mln

* Noodles & Co ( NDLS ) sees 2025 comparable sales growth of 2.5% to 4.0%

* Company anticipates 2025 restaurant contribution margins of 11.8% to 12.6%

* Noodles & Co ( NDLS ) plans 2 new company-owned restaurant openings in 2025

Result Drivers

* COMPARABLE SALES - Comparable restaurant sales increased 1.5% system-wide, driven by new menu rollout and value-focused initiatives, per CEO Drew Madsen

* VALUE PERCEPTION - Efforts to improve guest value perception through the Delicious Duos platform showed positive early results, with recent sales averaging a 5% increase

* CHALLENGING ENVIRONMENT - Company faced a challenging consumer environment with heightened discounting and promotional activity impacting sales and traffic

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $126.40 $131.60

Revenue mln mln (2

Analysts

)

Q2 Miss -$0.12 -$0.05

Adjusted (1

EPS Analyst)

Q2 EPS -$0.38

Q2 Net -$17.60

Income mln

Q2 Miss $6 mln $8.10

Adjusted mln (2

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy."

* Wall Street's median 12-month price target for Noodles & Co ( NDLS ) is $2.75, about 60% above its August 12 closing price of $1.10

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)