Noodles & Company reported a total revenue of $123.8 million for the first quarter of fiscal year 2025, reflecting a 2.0% increase from $121.4 million in the same period of the previous year. The growth was primarily driven by a 4.4% increase in system-wide comparable restaurant sales, which included a 4.7% rise at company-owned locations and a 2.9% increase at franchise restaurants. However, the company experienced a net loss of $9.1 million, compared to a loss of $6.1 million in the first quarter of 2024, resulting in a loss per share of $0.20, up from $0.14 in the prior year.
The increase in revenue was offset by a rise in total costs and expenses, which grew by 3.7% to $130.2 million, up from $125.5 million in the first quarter of 2024. Key contributors to this increase included an 8.7% rise in the cost of sales, attributed to new menu offerings and inflationary pressures. Labor costs also increased by 2.5%, while occupancy costs decreased slightly. The company closed three restaurants during the quarter, contributing to a strategic evaluation of its restaurant portfolio, which now consists of 369 company-owned and 91 franchise locations across 31 states.
Operationally, Noodles & Company opened one new company-owned restaurant in the first quarter and plans to open two more by the end of the fiscal year. The company continues to focus on enhancing customer engagement through its Noodles Rewards program and a comprehensive menu upgrade launched in March 2025. Despite the positive trends in comparable sales, the company faces challenges from macroeconomic conditions and rising operational costs, particularly in labor and third-party delivery fees.
Looking ahead, Noodles & Company anticipates continued revenue growth driven by its strategic initiatives, including the rollout of new menu items and enhanced marketing efforts. The company expects to maintain compliance with its debt covenants and has sufficient liquidity to support its operations, with a cash balance of $1.4 million and available borrowings of $19.3 million under its credit facility as of April 1, 2025. The company estimates capital expenditures for the fiscal year to be between $11 million and $13 million, primarily for reinvestment in existing restaurants and technology improvements.
About NOODLES & Co
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