Noodles & Company reported a total revenue of $493.3 million for the fiscal year ending December 31, 2024, a decrease of 2.0% from $503.4 million in the previous year. The decline was primarily attributed to a 1.5% drop in system-wide comparable restaurant sales, which included a 1.8% decrease for company-owned locations and a 0.2% decrease for franchise restaurants. The average unit volume also fell by 3.0% to $1.29 million, reflecting reduced customer traffic. The company experienced a net loss of $36.2 million, significantly higher than the $9.9 million loss reported in 2023, driven by increased operational costs and impairments.
In 2024, Noodles & Company opened ten new company-owned restaurants while closing thirteen, resulting in a total of 371 company-owned and 92 franchise locations across 31 states by year-end. The company also refranchised six locations, which contributed to a reduction in overall revenue. The strategic decision to close underperforming restaurants was part of an ongoing evaluation of its portfolio to align with current consumer trends. The company plans to open two additional company-owned restaurants in 2025, indicating a cautious approach to expansion amid challenging market conditions.
Operationally, Noodles & Company reported a decrease in labor costs by 2.1% to $154.3 million, aided by improved labor efficiencies and a reduction in wage inflation, which was less than 3% for the year. However, the cost of sales increased slightly as a percentage of restaurant revenue, rising to 25.6% from 25.2% in the previous year. The company also faced higher occupancy and other operating costs, which contributed to a total increase in expenses of 2.5% year-over-year. The significant rise in restaurant impairments, which totaled $20.3 million in 2024 compared to $8.4 million in 2023, further impacted the financial results.
Looking ahead, Noodles & Company is focused on revitalizing its menu offerings, having initiated a comprehensive menu upgrade in late 2024 that aims to enhance customer engagement and address gaps in its product line. The company anticipates that these changes, along with strategic marketing efforts, will help improve sales performance in the coming year. Despite the current challenges, management remains optimistic about the potential for recovery and growth, contingent on successful implementation of its strategic initiatives and favorable market conditions.
About NOODLES & Co
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.