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Noodles & Co
(NASDAQ:NDLS)
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Rating:46Neutral
Price Target:
$14.50
▼(-1.89% Downside)
Action:Reiterated
Date:08/24/26
The score is held back primarily by weak financial quality—ongoing losses, margin pressure, and especially high leverage with negative equity—despite improving revenue and cash flow. Technicals are mixed (longer-term trend supportive but short-term momentum weak), while valuation is difficult to justify with a negative P/E and no dividend support.
Positive Factors
Revenue Growth
The 12.2% TTM revenue increase indicates renewed customer demand and improved sales momentum after weaker prior periods, providing a foundation for operating leverage if growth can be sustained.
Negative Factors
High Leverage and Negative Equity
High leverage and negative equity materially reduce financial flexibility and increase refinancing risk. This capital structure can constrain investment, heighten sensitivity to operating setbacks, and limit strategic options.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
The 12.2% TTM revenue increase indicates renewed customer demand and improved sales momentum after weaker prior periods, providing a foundation for operating leverage if growth can be sustained.
Read all positive factors
Noodles & Co (NDLS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$85.44M
Dividend YieldN/A
Average Volume (3M)54.42K
Price to Earnings (P/E)―
Beta (1Y)0.73
Revenue Growth0.19%
EPS Growth46.85%
CountryUS
Employees6,500
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-4.01
Shares Outstanding5,966,660
10 Day Avg. Volume29,411
30 Day Avg. Volume54,418
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)-0.72
Price to Sales (P/S)0.07
P/FCF Ratio-6.34
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.44
Revenue Forecast (FY)$483.30M
Noodles & Co Business Overview & Revenue Model
Company Description
Noodles & Company is a fast-casual dining enterprise, engaged in both the conceptualization and operation of its eateries. Patrons can choose from an extensive menu of meals prepared fresh to order, featuring a variety of noodle and pasta dishes, ...
How the Company Makes Money
Noodles & Company makes money primarily by selling prepared food and beverages to customers through its restaurant network. The company’s core revenue stream is company-owned restaurant sales, which are generated from in-store dining and off-premi...
Noodles & Co Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: meaningful comparable sales growth, significant margin expansion, tripling of adjusted EBITDA, improved customer acquisition and raised full-year guidance. These positives are partly offset by a flat total revenue figure (due to closures), a Q1 net loss that included a $2.7M impairment, low quarter-end cash ($1.4M), elevated debt ($106.8M) and planned restaurant closures. Overall, the operational improvements, financial outperformance versus prior year, and upgraded guidance outweigh the challenges, which management positions as strategic and temporary.Positive Updates
Strong Comparable Sales Growth
System-wide comparable restaurant sales increased 9.1% in Q1 (company-owned +9.4%, franchise +8.0%); April comps continued momentum at >9% system-wide and >10% at company-operated restaurants. Company has delivered positive same-store sales for 16 consecutive months.
Negative Updates
Flat Total Revenue
Total revenue in Q1 was relatively flat year-over-year at $123.8 million, with comp sales gains largely offset by restaurant closures taken during portfolio optimization.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Comparable Sales Growth
System-wide comparable restaurant sales increased 9.1% in Q1 (company-owned +9.4%, franchise +8.0%); April comps continued momentum at >9% system-wide and >10% at company-operated restaurants. Company has delivered positive same-store sales for 16 consecutive months.
Read all positive updates
Company Guidance
Noodles & Company raised full‑year 2026 guidance to total revenue of $483–$498 million, with comp restaurant sales growth of 7%–10% and restaurant contribution margin of 15.5%–17%; adjusted EBITDA is expected to be $32.5–$37.5 million. Management forecasts G&A of $50–$53 million (including roughly $2.5 million of stock‑based compensation), depreciation & amortization of $24–$25 million, interest expense of $10–$11 million, and capital expenditures of $9.5–$10.5 million; they project 1–2 new franchise openings and plan to close about 30–35 company‑owned and 5 franchise restaurants. The company expects to be free‑cash‑flow positive and to reduce debt by approximately $10 million in 2026 (including the $3.4 million reduction already realized), having ended Q1 with $1.4 million of available cash and $106.8 million of debt.Noodles & Co Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
18
Very Negative
Cash Flow
36
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 495.69M | 495.09M | 493.27M | 503.40M | 509.48M | 475.15M |
| Gross Profit | 24.07M | 44.03M | 168.96M | 84.21M | 80.17M | 82.08M |
| EBITDA | 11.92M | -4.54M | 1.29M | 21.76M | 22.44M | 28.15M |
| Net Income | -23.33M | -42.57M | -36.21M | -9.86M | -3.31M | 3.67M |
Balance Sheet | ||||||
| Total Assets | 235.77M | 261.67M | 324.65M | 368.10M | 343.84M | 341.46M |
| Cash, Cash Equivalents and Short-Term Investments | 1.30M | 1.26M | 1.15M | 3.01M | 1.52M | 2.25M |
| Total Debt | 242.53M | 263.83M | 291.50M | 298.94M | 264.16M | 249.78M |
| Total Liabilities | 286.79M | 306.98M | 330.23M | 340.94M | 305.48M | 303.83M |
| Stockholders Equity | -51.02M | -45.30M | -5.58M | 27.16M | 38.36M | 37.63M |
Cash Flow | ||||||
| Free Cash Flow | 3.76M | -5.11M | -21.21M | -24.55M | -24.33M | 17.39M |
| Operating Cash Flow | 13.42M | 7.28M | 7.56M | 27.50M | 9.56M | 36.16M |
| Investing Cash Flow | -9.66M | -12.39M | -26.71M | -51.80M | -32.31M | -18.37M |
| Financing Cash Flow | -4.73M | 5.23M | 17.29M | 25.80M | 22.02M | -23.38M |
Noodles & Co Technical Analysis
Neutral
14.78
Price Trends
14.83
Negative
13.50
Positive
9.81
Positive
Market Momentum
-0.34
Positive
44.13
Neutral
19.96
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDLS, the sentiment is Neutral. The current price of 14.78 is below the 20-day moving average (MA) of 15.43, below the 50-day MA of 14.83, and above the 200-day MA of 9.81, indicating a neutral trend. The MACD of -0.34 indicates Positive momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 19.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NDLS.
Noodles & Co Risk Analysis
Noodles & Co disclosed 36 risk factors in its most recent earnings report. Noodles & Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Noodles & Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $43.20M | 14.75 | 19.21% | ― | 3.20% | 9.92% | |
67 Neutral | $87.34M | 13.16 | 9.84% | 1.28% | 6.14% | 53.60% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $16.05M | 7.20 | 6.62% | ― | -5.81% | 78.41% | |
46 Neutral | $85.44M | -3.57 | 50.91% | ― | 0.19% | 46.85% | |
42 Neutral | $19.18M | -6.05 | -9.79% | 5.09% | -9.48% | 77.31% |
* Consumer Cyclical Sector Average
NDLS
Noodles & Co
14.32
8.96
167.16%
ARKR
Ark Restaurants
5.32
-1.78
-25.07%
BDL
Flanigan's Enterprises
46.99
19.62
71.68%
GTIM
Good Times Restaurants
1.52
-0.03
-1.94%
RAVE
Rave Restaurant Group
3.04
-0.32
-9.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.