Noodles & Co. stock remains soggy despite menu revamp

RESTAURANTS

‘Contemporary comfort kitchen’ less than appetizing for investors

Broomfield-based Noodles and Co. revamped its menu recently with items such as buffalo chicken ranch mac and cheese. HYOUNG CHANG — THE DENVER POST

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By Lucas High

BizWest

Broomfield-bsaed Noodles & Co. (Nasdaq: NDLS) rolled out a system-wide menu update in the first quarter of 2025, but the fast-casual chain’s stock remains less than appetizing for investors.

The company’s shares were trading at 94 cents as of 10:50 a.m. Thursday, down 6.44% on the day and below Nasdaq’s $1 threshold for listing. The exchange warned Noodles in January that it could face delisting if it can’t consistently eclipse that threshold.

Noodles posted sales of $123.8 million in the first quarter of 2025, up 2% year over year. But the company’s net loss grew from $6.1 million to $9.1 million over that period.

In March, Noodles began serving a host of new or updated menu items that included cajun shrimp fettuccine, buffalo chicken ranch mac and cheese, green goddess Cobb salad, lemon parmesan broccoli, rigatoni rosa and basil pesto cavatappi.

Noodles CEO Drew Madsen, a former president at Panera Bread who was hired in late 2023 to replace Noodles’ long-time CEO Dave Boennighausen, unveiled the company’s “menu transformation” efforts to investors and analysts in March 2024, saying that Noodles must adopt a “new ‘contemporary comfort kitchen’ culinary identity.”

Noodles hired restaurant-industry consulting firm The Culinary Edge to help shape its updated culinary identity.

“We believe we have positioned the company to capitalize on the significant growth opportunities we see ahead. Our new brand strategy focused on our comprehensive new menu is increasing relevance and demand, our loyalty program continues to grow, and our emphasis on operations excellence is helping deliver a more consistent guest experience while ensuring the successful execution of the new menu,” Madsen said in a statement when the company filed its first quarter earnings report on Wednesday afternoon.

“Combined with a significant reduction in capital spending and continued emphasis on smart cost savings, we are well-positioned to strengthen our balance sheet as well. Overall, we are confident in the foundation we have put in place and are excited by our sales momentum to start 2025.”