Noodles & Company reported its financial results for the fiscal quarter ending October 1, 2024, revealing a decline in both revenue and profitability compared to the same period in the previous year. Total revenue for the quarter was $122.8 million, down 4.0% from $127.9 million in the third quarter of 2023. Restaurant revenue also decreased by 4.0%, from $125.2 million to $120.2 million. The decline in sales was attributed to a challenging consumer environment and increased price sensitivity, with system-wide comparable restaurant sales decreasing by 3.3%.

The company's operating costs increased, with total costs and expenses rising to $127.6 million, up 1.4% from $125.8 million in the prior year. This led to a significant loss from operations of $4.8 million, compared to an income of $2.0 million in the same quarter of 2023. The net loss for the quarter was $6.8 million, a stark contrast to the net income of $0.7 million reported in the previous year.

For the first three quarters of fiscal 2024, Noodles & Company experienced a net loss of $26.5 million, compared to a loss of $3.7 million in the same period of 2023. Total revenue for this period was $371.5 million, down 2.0% from $379.1 million in the prior year. The loss from operations for the first three quarters was $20.4 million, a significant increase from a loss of $0.5 million in the same period last year.

The company’s total assets decreased to $340.5 million as of October 1, 2024, from $368.1 million at the beginning of the year. Total current liabilities increased to $76.2 million, while long-term debt rose to $88.4 million. Stockholders’ equity saw a significant decline, dropping to $3.7 million from $27.2 million at the start of the fiscal year.

Strategically, Noodles & Company opened ten new company-owned restaurants and two franchise locations in 2024, while also selling six company-owned restaurants to a franchisee. The company closed five restaurants in the third quarter, contributing to a total of seven closures in the first three quarters of 2024. The company has plans to close an additional 10 to 15 company-owned restaurants by the end of the year.

In terms of financial management, Noodles & Company amended its Amended and Restated Credit Agreement, increasing the borrowing rates and adjusting the Consolidated Total Lease Adjusted Leverage Ratio. As of October 1, 2024, the company had $89.9 million in indebtedness and $3.3 million in cash on hand. The average interest rate on outstanding bank debt increased to 8.67% during the first three quarters of 2024, reflecting higher market rates.