At Noodles & Company, our team seeks to be transparent when it comes to running our business. As a public company, we’re able to share all the crucial facts about our restaurant franchise, including new restaurant performance, updated sales performance, and more. Continue reading to learn about our Q3 earnings and how we help build confidence and credibility in our brand.
A CLOSER LOOK AT NOODLES & COMPANY Q3 EARNINGS
In 2022, Noodles & Company’s total revenue increased 3.4% to $129.4 million from $125.1 million in the third quarter of 2021. Moreover, our company experienced a 16.8% increase to $1.39mm in the third quarter of 2019. Our pattern of growth continued throughout our third quarter, showing an increase in many other key areas. We even expanded our restaurant operations with three new company-owned restaurants and one new franchise location opening in the third quarter of 2022, ending the quarter with 459 restaurants system-wide.
Our total revenue increase was largely due to sales growth in the comparable restaurant base as well as an incremental $3.5 million benefit from new restaurant openings since the start of the third quarter in 2021.
LOOKING TOWARD THE FUTURE
In our earnings report, Noodles & Company also looked toward the future and provided our expectations for the fourth quarter. We anticipate a fourth-quarter 2022 total revenue of $133.5 million to $136.5 million and a restaurant-level contribution margin of 14.5% to 15.0%. These expectations reiterate the full-year 2022 unit growth of approximately 5% and full-year 2022 capital expenditures of $30.0 to $33.0 million.
Overall, Noodles & Company is very satisfied with our third-quarter sales performance and it’s clear that our on-trend innovation still resonates with guests. Additionally, although we’re in the midst of a challenging inflationary environment, it resulted in meaningful improvements in some of our key input costs.
LONG-TERM GROWTH STRATEGY & TRANSPARENCY
Our ability to be transparent and discuss our performance is part of how Noodles & Company shows pride in what we do, which is a key value at our fast-casual franchise. This includes championing the success and incredible bench strength of unit managers to hit new long-range targets set by Carl Lukach, Chief Financial Officer. The goal is to obtain a 30 percent cash-on-cash return. “By 2024, we want to be $1.45 million AUV and 20 percent contribution margins,” Lukach says. Noodles’ long-term growth strategy also includes recruiting franchisees from the Pathways to Black Franchise Ownership program, which aims to create 100 Black-owned franchise restaurants by the end of 2023.
OPEN A RESTAURANT FRANCHISE WITH NOODLES & COMPANY TODAY
Are you looking for an addition to your portfolio that gives you the edge over other fast-casual players? With a differentiated concept that boasts globally-inspired, made-to-order dishes in record time – the Noodles & Company franchise may be the right path for you. We’re looking for driven entrepreneurs who share our love for life, care about their community, and believe in showing pride in what they do. Don’t hesitate to schedule a call with us today to request more information about this unique business opportunity. Our team is looking forward to hearing from you and learning about your goals!