Update shared on 03 Dec 2025
Analysts have modestly increased their price target on Noodles to reflect a slightly higher implied future valuation, despite largely unchanged fair value assumptions and only marginal revisions to long term revenue growth and profit margin expectations.
What's in the News
- Noodles & Company raised its full year 2025 guidance, forecasting total revenue of $492 million to $495 million and comparable restaurant sales growth of 3.6% to 4.2% (company guidance).
- The company changed auditors, dismissing Ernst & Young LLP and appointing Grant Thornton LLP as its new independent registered public accounting firm for the fiscal year ending December 30, 2025 (SEC filing).
- Noodles & Company launched a limited time Chili Garlic Ramen, a brothless, trend-inspired offering priced at $8.95 and rolling out nationwide after an early debut for Rewards Members (company announcement).
- For the holiday season, the chain introduced a limited time Holiday Crispy made with SNICKERS, a $3.50 dessert available in December while supplies last (company announcement).
Valuation Changes
- Fair Value: unchanged at $1.75, indicating no revision to the intrinsic value estimate.
- Discount Rate: unchanged at 12.5%, reflecting a stable view of Noodles risk profile.
- Revenue Growth: effectively unchanged at approximately minus 4.4% annually, with only a negligible upward adjustment.
- Net Profit Margin: reduced slightly from about 8.17% to 8.09%, implying a modestly lower long term profitability assumption.
- Future P/E: increased slightly from roughly 3.53x to 3.57x, indicating a marginally higher expected earnings multiple on future profits.
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