Thu, May 8, 10:02 AM (15 days ago)
**Noodles & Company (NDLS) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $123.8 million, up 2.0% YoY, driven by a 4.4% increase in system-wide comparable restaurant sales. - **Profit Margins:** Net loss of $9.1 million, wider than the $6.1 million loss in Q1 2024, due to higher costs and expenses. - **Cash Flow:** Positive operating cash flow of $4.0 million, down from $7.0 million in Q1 2024. - **Earnings Changes:** Loss per share widened to $0.20 from $0.14 in Q1 2024. **Key Metrics & Trends:** - **Comparable Restaurant Sales:** Up 4.7% at company-owned restaurants and 2.9% at franchise-owned restaurants. - **Cost of Sales:** Increased by 8.7% YoY due to new menu offerings and inflation. - **Labor Costs:** Increased by 2.5% YoY due to wage inflation and training expenses. - **Occupancy Costs:** Decreased by 2.8% YoY due to sales leverage and restaurant closures. - **Other Restaurant Operating Costs:** Increased by 9.3% YoY due to third-party delivery fees, marketing, and utilities. - **General and Administrative Expense:** Decreased by 1.8% YoY due to lower salary and incentive compensation. - **Depreciation and Amortization:** Decreased by 3.8% YoY due to restaurant closures. - **Interest Expense:** Increased by 33.8% YoY due to higher average debt balances. **Uncertainties & Future Operations:** - **Macroeconomic Uncertainty:** Near-term sales growth remains constrained by macroeconomic uncertainty and consumer sentiment. - **Commodity Prices:** Inflation in commodity markets has stabilized, but increases in commodity prices could affect restaurant operating costs. - **Labor Costs:** Base labor costs have risen, but wage inflation has stabilized to less than 3%. - **Restaurant Development:** The company plans to open two new company-owned restaurants in 2025. - **Impairments and Closures:** The company continues to analyze its restaurant portfolio and expects to close certain underperforming restaurants. - **Capital Expenditures:** The company estimates capital expenditures will be approximately $11.0 million to $13.0 million for fiscal year 2025, primarily for reinvestment in existing restaurants, technology, and one additional company-owned restaurant. **Debt & Liquidity:** - **Debt:** As of April 1, 2025, the company had $102.7 million of indebtedness and $3.0 million of letters of credit outstanding under its A&R Credit Agreement. - **Liquidity:** The company believes it has sufficient sources of cash to meet its liquidity needs and capital resource requirements for at least the next twelve months.