Financial Data and Key Metrics - Adjusted EBITDA for Q3 2023 was $11.7 million, nearly 20% above Q3 2022, driven by a 200 basis point improvement in restaurant-level margin to 16.4% [6] - Total revenue decreased 1.2% YoY to $127.9 million in Q3 2023, with system-wide comparable restaurant sales declining 3.7% [7] - Company average unit volumes in Q3 were $1.34 million, with comparable traffic declining 6.7% and pricing at 3.9% [15] - Full-year 2023 revenue guidance is $502 million to $506 million, with negative low-single digit comparable restaurant sales [19] - Full-year adjusted EBITDA guidance is $36 million to $40 million, with Q4 adjusted EBITDA expected between $8 million and $12 million [20] Business Line Performance - Catering grew 35% YoY in Q3, with significant potential for further expansion [14] - Digital menu boards have been installed in over 75% of company restaurants, with full rollout expected by year-end [10] - NoodlesREWARDS program reached 5 million members, contributing to a 45% increase in the likelihood of digital guests adding recommended items and a 1% lift in average check on digital platforms [11] Market Performance - Chicken Parmesan, introduced in Q3, has consistently been one of the top 3 selling dishes, with a 33% increase in rewards program sign-ups during its exclusive pre-launch period [12] - The dish appeals primarily to younger and lower-income cohorts, with a 30% higher index in trade areas with younger, lower-income demographics [28] Strategic Initiatives and Industry Competition - Five key initiatives to drive sales: price optimization, technology platform advancements, leveraging Chicken Parmesan, menu optimization with third-party consulting, and catering program expansion [8] - Price optimization efforts include testing pricing strategies and partnering with third-party research firms to understand pricing elasticity [9] - Menu optimization with The Culinary Edge focuses on menu architecture, offerings, and culinary operations, with tests expected to broaden and implement in early 2024 [33] Management Commentary on Operating Environment and Future Outlook - Management is encouraged by Q3 margin expansion and EBITDA growth, despite a challenging Q2 [7] - The company expects low-single digit food deflation for 2023, led by chicken, which is contracted for the full year [16] - Labor costs moderated in Q3, with hourly wage inflation at 5.5% YoY, down to 3.9% in September [17] - The company is focused on transforming the menu and pricing structure to optimize long-term performance [40] Other Important Information - The company retired 1.7 million shares at an average price of $2.86 per share in Q3, completing a $5 million share repurchase authorization [21] - Four new restaurants were opened in Q3, with a total of 20 expected for the full year, representing 5% gross unit growth in company-owned restaurants [21] Q&A Session Summary Question: Learnings from past pricing strategies and future optimization [25] - The company acknowledged being too aggressive with pricing in 2022 and early 2023 but sees opportunities for more surgical pricing strategies, including trade area tiering and menu item-specific pricing [26] Question: Trends among different income cohorts [27] - Chicken Parmesan has shown strong appeal among younger, lower-income demographics, with a 30% higher index in those trade areas [28] Question: Q4 guidance and comparisons to last year [30] - Q4 2022 had strong same-store sales growth above 10%, making comparisons challenging, but the company is seeing acceleration in 2-year same-store sales growth [31] Question: Menu optimization timing and balancing complexity [32] - Menu optimization with The Culinary Edge is ongoing, with tests expected to broaden and implement in early 2024, focusing on menu architecture, offerings, and culinary operations [33] Question: Chicken Parmesan sales mix [34] - Chicken Parmesan is the third highest-selling item, with top taste scores, though specific mix percentages are not disclosed [35] Question: Digital menu board rollout and impact [37] - Digital menu boards are at 85% rollout, with tests on pricing strategies already underway, and broader implementation expected in early 2024 [38] Question: Value perception and traffic recovery [39] - The company believes that transforming the menu and pricing structure will be key to improving traffic and value perception over time [40] Question: 2024 COGS and commodity inflation expectations [41] - The company is in the process of locking in 2024 prices, with initial conversations on chicken pricing showing positive progress [42][43] Question: 2024 development pipeline [44] - 2024 growth is expected to be similar to 2023, with franchise growth potentially playing a larger role, and signed leases already in place for the pipeline [45]

Restaurant Operations - In the first three quarters of 2023, Noodles & Company opened 13 new company-owned restaurants, bringing the total to 377 company-owned and 91 franchise restaurants across 31 states[63]. - The company permanently closed four company-owned restaurants in the first three quarters of 2023, with no significant closures anticipated in the near future[64]. - The company opened 4 new company-owned restaurants in Q3 2023, bringing the total to 377 at the end of the period[80]. Financial Performance - Revenue for the fiscal quarter ended October 3, 2023, was $20,554,000, compared to $18,217,000 for the same quarter in the previous year, reflecting an increase[77]. - Total revenue decreased by $1.5 million, or 1.2%, to $127.9 million in Q3 2023 compared to $129.4 million in Q3 2022[87]. - Total revenue increased by $6.1 million, or 1.6%, to $379.1 million in the first three quarters of 2023 compared to $373.0 million in the same period of 2022[100]. - Net income for Q3 2023 was $700,000, a decrease of $95,000 or 11.9% compared to Q3 2022[86]. Sales and Traffic - The company experienced a decline in restaurant-level traffic and total revenue during the first three quarters of 2023, attributed to consumer response to recent price increases[59]. - Comparable restaurant sales decreased by 3.7% in Q3 2023, with a 4.3% decrease at company-owned restaurants and a 1.2% decrease at franchise-owned restaurants[87]. - Comparable restaurant sales decreased 1.3% at company-owned restaurants and 1.1% system-wide in the first three quarters of 2023, primarily due to a decline in guest traffic[100]. Cost Management - Labor costs have risen due to high competition for restaurant workers, although there was a modest deceleration in wage inflation growth during the first three quarters of 2023[62]. - Restaurant operating costs as a percentage of restaurant revenue decreased to 25.1% in Q3 2023 from 28.1% in Q3 2022, primarily due to lower food and ingredient commodity pricing[88]. - Labor costs increased by $0.1 million, or 0.2%, in Q3 2023, with labor costs as a percentage of restaurant revenue rising to 31.3% from 30.8%[89][90]. - Occupancy costs increased by $0.4 million, or 3.3%, in Q3 2023, with occupancy costs as a percentage of revenue rising to 9.2% from 8.8%[91]. - General and administrative expenses increased by $0.3 million, or 2.3%, in Q3 2023, with these expenses as a percentage of revenue increasing to 9.3% from 9.0%[93]. - Cost of sales decreased by $8.8 million, or 8.6%, to 25.1% of restaurant revenue in the first three quarters of 2023 compared to 27.9% in the same period of 2022[101]. - Labor costs increased by $5.3 million, or 4.6%, to 32.0% of restaurant revenue in the first three quarters of 2023 compared to 31.1% in the same period of 2022[102]. - Occupancy costs increased by $1.0 million, or 3.0%, to 9.3% of revenue in the first three quarters of 2023 compared to 9.1% in the same period of 2022[103]. EBITDA and Margins - Adjusted EBITDA for the three quarters ended October 3, 2023, was $28,006,000, up from $23,163,000 in the same period last year[76]. - The restaurant contribution margin improved to 16.4% in the fiscal quarter ended October 3, 2023, compared to 14.4% in the same quarter of the previous year[77]. Cash Flow and Investments - Net cash provided by operating activities was $27.3 million in the first three quarters of 2023, compared to $7.8 million in the same period of 2022[113]. - Net cash used in investing activities increased to $36.6 million in the first three quarters of 2023 from $21.0 million in the same period of 2022, primarily due to new restaurant openings[114]. - Capital expenditures are estimated to be approximately $45.0 million to $50.0 million for fiscal year 2023, primarily for new restaurant openings and technology investments[117]. Debt and Interest - As of October 3, 2023, the company had $65.4 million of outstanding borrowings under its credit facility with an average interest rate of 8.00%, up from 4.09% in the same period of 2022[126]. - Interest expense, net increased by $0.5 million in Q3 2023 due to higher interest rates and debt balances[95]. - A 1.0% increase or decrease in the effective interest rate would result in a pre-tax interest expense fluctuation of approximately $0.7 million on an annualized basis[126]. Share Repurchase and Stock - The company repurchased 1,731,952 shares of its common stock for approximately $5.0 million at an average price of $2.86 per share during the third quarter ended October 3, 2023[136]. - The company’s share repurchase program announced on July 26, 2023, allows for up to $5.0 million in Class A common stock repurchases[136]. Market Conditions and Risks - The company continues to face risks related to inflation, economic uncertainties, and consumer behavior impacting restaurant traffic and revenue[58]. - Inflationary pressures on food, labor, energy, and construction materials are expected to continue affecting the company's results in the near future[128]. - The cost of food increased in 2022 due to commodity price volatility, but began to improve materially in late 2022 and into the first three quarters of 2023, particularly for chicken[127]. Internal Controls and Legal Matters - The company has not experienced any material changes in its internal control over financial reporting during the most recent fiscal quarter[131]. - There are currently no material legal proceedings involving the company, although it may become involved in ordinary course legal matters[133]. - The company’s disclosure controls and procedures are deemed effective as of October 3, 2023, ensuring timely and accurate reporting[130].

Noodles & Company (NASDAQ:NDLS) Q2 2023 Results Conference Call August 9, 2023 4:30 PM ET Company Participants Dave Boenninghausen - CEO Mike Hynes - CFO Conference Call Participants Joshua Long - Stephens Jake Bartlett - Truist Securities Andrew Barish - Jefferies Operator Good afternoon and welcome to today’s Noodles & Company's Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introduce Noodles & Company's Chief Financia ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION | --- | --- | --- | |-------|--------------------------|---------------------------------------------------------------| | | WASHINGTON, DC 20549 | _____________________________________________________________ | | | FORM 10-Q | | ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 4, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...

Noodles & Company (NASDAQ:NDLS) Q1 2023 Earnings Conference Call May 10, 2023 4:30 PM ET Company Participants Carl Lukach - CFO Dave Boennighausen - CEO Conference Call Participants Joshua Long - Stevens Inc. Andrew Barish - Jefferies Todd Brooks - The Benchmark Company Jake Bartlett - Truist Securities Operator Good afternoon and welcome to today’s Noodles & Company's First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to introdu ...

Table of Contents Securities registered pursuant to Section 12(b) of the Act. Title of each class Trading Symbol Name of each exchange on which registered Class A Common Stock, $0.01 par value per share NDLS Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _____________________________________________________________ FORM 10-Q _____________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXC ...

Noodles & Company (NASDAQ:NDLS) Q4 2022 Results Conference Call March 8, 2023 4:30 PM ET Company Participants Carl Lukach - Chief Financial Officer Dave Boennighausen - Chief Executive Officer Conference Call Participants Joshua Long - Stephens Jake Bartlett - Truist Securities Andy Barish - Jefferies Todd Brooks - Benchmark Company Operator Good afternoon and welcome to today’s Noodles & Company’s Fourth Quarter 2022 Earnings Conference Call. At this time all participants are now in a listen-only mode. Aft ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 3, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35987 NOODLES & COMPANY (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (IR ...

Noodles & Company (NASDAQ:NDLS) Q3 2022 Earnings Conference Call November 3, 2022 4:30 PM ET Company Participants Carl Lukach - Chief Financial Officer Dave Boennighausen - Chief Executive Officer Conference Call Participants Nicole Miller Regan - Piper Sandler Andrew Strelzik - BMO Capital Markets Joshua Long - Stephens Operator Good afternoon and welcome to today’s Noodles & Company’s Third Quarter 2022 Earnings Conference Call. All participants are now in a listen-only mode. After the speakers' presentat ...