Noodles & Company announced its third quarter 2024 financial results on November 6, 2024, reporting a net loss of $6.8 million, or $0.15 per share. Total revenue for the quarter decreased by 4.0% year-over-year to $122.8 million. Comparable restaurant sales declined by 3.3% across the system, with company-owned restaurants also seeing a 3.3% decrease.
The restaurant contribution margin for Q3 2024 was 12.8%, a decrease from 15.5% in the third quarter of 2023. Adjusted EBITDA for the quarter was $6.0 million, down from $10.9 million in the prior year. The company's cash balance stood at $3.3 million, with $89.9 million in outstanding debt and $32.1 million available under its revolving credit facility as of October 1, 2024.
Management revised its full-year 2024 guidance, now expecting comparable restaurant sales growth between -2.5% and -1.5%, a reduction from the previous range of -1.0% to 1.0%. The projected restaurant contribution margin was also lowered to 12.5% to 13.5% from 13.5% to 14.5%. CEO Drew Madsen attributed the shortfall to a challenging consumer environment, increased promotional activity, and an unexpected decline in third-party delivery sales.
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