What is the revenue and EPS growth rate for Noodles year over year?

What guidance did Noodles's management provide for the next earnings period?

What is Noodles's gross profit margin?

What factors drove the changes in Noodles's revenue and profit?

Did Noodles beat or miss consensus estimates last quarter?

What does Noodles do and what are its main business segments?

What is Noodles's latest dividend and current dividend yield?

What were the key takeaways from Noodles’s earnings call?

- **Sales Surge**: Q3 comp sales +4%, October +8%, driven by Delicious Duos and Chili Garlic Ramen LTO. Digital sales +12%.
- **Margin Expansion**: Adjusted EBITDA +33% to $6.5M, restaurant margin 13.2% (vs. 12.8% prior year). Labor costs down 60bps.
- **Cost Efficiency**: $5M cost savings plan on track; 30% sales retention from closed restaurants boosts nearby units.
- **Strategic Closures**: 31-34 closures by year-end, saving $2M in 2026. Q3 closures contributed $300k to EBITDA.
- **Digital Growth**: Third-party delivery +12%, NoodlesREWARDS engagement up with 30th anniversary promotions.

**【CEO Summary Section】**
- **Revenue Growth and Sales Momentum**: Total revenue decreased 0.5% to $122.1 million, but system-wide comparable sales increased 4.0% in Q3, accelerating to 8% in October. Digital sales grew 12%, driven by third-party delivery.
- **Menu Innovation Success**: The Delicious Duos platform contributed 4-5% of sales, with guests upselling to other menu items. The Chili Garlic Ramen LTO drove traffic and repeat purchases, with sales transfers from closed restaurants boosting nearby units by 30%.
- **Strategic Closures and Margin Improvement**: 15 company-owned restaurants closed in Q3, contributing $300k to Q3 EBITDA and expected to save $2 million in 2026. Restaurant contribution margins improved 40bps to 13.2%, with labor costs down 60bps due to sales leverage.
- **Cost Savings and Efficiency**: A $5 million cost savings plan is on track for 2025, with further optimizations planned for 2026. Digital marketing ROI improved through targeted media spend.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EBITDA rose 33% to $6.5 million, driven by sales growth and cost controls. Food inflation was 2%, offset by menu pricing and vendor rebates. G&A expenses decreased $0.6 million due to reduced summit costs.
- **Liquidity and Debt**: $4.7 million cash on hand, $109.8 million debt, and $12 million available on revolving credit. Capital expenditures were $3.7 million, down from $7.1 million in 2024.
- **Full Year Guidance**: Revenue $492-495 million, comp sales 3.6-4.2%, restaurant margin 12.3-12.7%, and $12-13 million capex.

**【Q&A Key Highlights】**
- **Duos Platform Impact**: 4-5% sales mix, with guests trading up to full menu items. Repeat frequency shows both new and existing customers.
- **Traffic Contribution**: 1.5% organic traffic growth in Q3, with 1% lift from sales transfers. October check average up 6% vs. discounted 2024 comps.
- **Ramen LTO Extension**: Trial and repeat strong, with potential for future LTOs or permanent menu addition.
- **Promotion Impact**: Q4 check growth to normalize post-Thanksgiving, with no repeat of 2024 heavy discounts.

Noodles & Company (NDLS) Q3 2025 Earnings Call Transcript

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