Noodles & Company (NDLS Quick QuoteNDLS - Free Report) reported preliminary, unaudited sales results for the fiscal fourth quarter ending Dec. 31, 2024. The company saw a notable improvement in sales compared with the third quarter of fiscal 2024.

NDLS exceeded the performance of the BlackBox Fast Casual Index in sales and customer traffic. Comparable sales growth showed consistent acceleration throughout the quarter.

Preliminary Q4 Sales Performance of NDLS

For the fourth quarter of fiscal 2024, Noodles & Company reported a 0.8% year-over-year increase in system-wide comparable sales. Company-owned restaurants experienced 0.5% growth, while franchise locations saw a 1.9% rise. Average unit volumes for company-owned locations remained flat year over year at $1.3 million. Additionally, digital sales for company-owned restaurants grew 5.6% year over year.

The improvement in comparable sales was driven by several factors, including the introduction of three new menu items and promotional offers during the first two months of the quarter. Additionally, momentum in the third-party delivery channel contributed to the growth. The strongest comparable sales performance occurred during the last four weeks of the quarter, following the end of promotional activities.

NDLS' Strategy & Growth Plans for 2025

The company’s recovery in sales and traffic during the fourth quarter provides a solid foundation for entering 2025. Looking ahead, Noodles & Company is well-positioned to capitalize on upcoming opportunities.

The company’s menu transformation is on track. It continues to drive traffic through digital channels and an expanding loyalty program. NDLS aims to strengthen its balance sheet by strategically reducing planned capital expenditures in 2025.

NDLS Stock’s Price Performance

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Shares of this national fast-casual restaurant chain have plunged 72.3% in the past year against the Retail - Restaurants industry’s 4.3% growth. The company continues to face a challenging consumer environment, marked by high industry-wide promotional and discount activity.

Nonetheless, Noodles & Company’s focus on menu innovation, digital capabilities and strong third-party delivery sales are likely to aid its growth prospects.

NDLS’ Zacks Rank & Key Picks

Noodles & Company currently carries a Zacks Rank #3 (Hold).

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