Noodles & Co (NO30) AI Stock Analysis

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Noodles & Co

(Frankfurt:NO30)

Rating:―N/A

Action:N/A

Date:―

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Positive Factors

Comparable Sales and Margin ExpansionEight consecutive quarters of positive comparable sales, higher traffic and stronger average unit volumes indicate sustained guest demand. The concurrent margin expansion shows that sales growth is translating into better restaurant economics, supporting a more durable operating model over the next several quarters.

Negative Factors

High Leverage and Negative EquityNegative equity and substantial debt leave the company with limited balance-sheet resilience if operating performance weakens. The capital structure can constrain investment and strategic flexibility, while refinancing risk remains material even though leverage improved versus 2024.

Noodles & Co (NO30) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 82.04M
Dividend Yield: ―
Average Volume (3M): 175
Price to Earnings (P/E): -3.4
Beta (1Y): 1.29
Revenue Growth: -6.60%
EPS Growth: 50.12%
Country: Germany
Employees: 6,500
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Restaurants

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, com...

Noodles & Co Earnings Call Summary

Earnings Call Date:Nov 13, 2026(Q3-2026)|Next Earnings Date:Mar 11, 2027

Earnings Call SentimentPositive

The call was strongly positive overall. Management reported broad-based comparable sales growth, higher traffic and AUVs, significant restaurant contribution margin expansion, 34% Adjusted EBITDA growth, improved net loss, debt reduction, successful menu launches, and positive early ramen results. The main challenges were the ongoing restaurant closures, a year-over-year revenue decline caused by those closures, continued net losses, higher G&A and delivery-related operating costs, limited available cash relative to debt, and a reduced top end of revenue guidance. These lowlights were outweighed by the reported operating improvements and positive outlook.

Positive Updates

Strong Comparable Sales Growth

System-wide comparable sales increased 9.5% in the third quarter, including 10.7% growth at company-owned restaurants and 4.9% growth at franchise restaurants. Company-owned restaurant traffic increased 7.8%, while average check increased 2.6%, including 1.9% effective pricing. This marked the eighth consecutive quarter of positive same-store sales growth.

Negative Updates

Total Revenue Declined Year Over Year

Third-quarter total revenue was $120.9 million, a $1.2 million decrease from the prior year. The decrease was driven by restaurant closures, which offset the significant increase in comparable sales.

Company Guidance

For the full year 2026, Noodles & Company guided to total revenue of $485 million-$495 million, including comp restaurant sales growth of 9%-10%; restaurant contribution margin between 16% and 16.7%; general and administrative expenses of $52 million-$54 million, inclusive of stock-based compensation expense of $2.5 million-$3 million; depreciation and amortization expense of $23 million-$24 million; interest expense of approximately $10 million; Adjusted EBITDA between $35 million and $37 million; one new franchise restaurant opening; 34-36 company-owned restaurant closures and seven to eight franchise restaurant closures; and total capital expenditures of $8.5 million-$9.5 million. The company continues to expect to be free cash flow positive in 2026, with the opportunity to reduce its debt balance by $10 million to approximately $100 million, and expects its debt balance to be below 3x Adjusted EBITDA; for 2027, Mike Hynes said there is no firm number, with best thinking right now being 10-15 closures next year.

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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:NO30 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RAVE	74Outperform	$30.64M	10.24	17.21%	―	6.70%	3.98%
BDL	71Outperform	$108.60M	16.07	9.84%	1.05%	6.14%	53.60%
GTIM	65Neutral	$13.94M	6.07	6.62%	―	-5.81%	78.41%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ARKR	38Underperform	$16.26M	-5.14	-9.79%	―	-9.48%	77.31%

* Consumer Cyclical Sector Average

Performance Comparison

DE:NO30 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:NO30	Noodles & Company	12.30	7.42	152.05%
ARKR	Ark Restaurants Corp.	4.51	-2.51	-35.75%
BDL	Flanigan's Enterprises	57.38	26.95	88.54%
GTIM	Good Times Restaurants	1.30	0.02	1.56%
RAVE	Rave Restaurant Group	2.11	-0.86	-28.96%

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.

Noodles & Co AI Stock Analysis