Operations

Noodles making comeback amid pandemic

Provided

October 1, 2020

After clawing its way back from years of sales losses, Noodles & Co. has returned to positive comparable sales growth during fiscal September with the company seeing a 146% increase in digital sales versus the prior year. Loyalty members have been a key contributor to the brand's recovery, with significant growth recognized in monthly sales attributed to rewards members, CEO Dave Boennighausen said in a company press release about the company's expected Q3 financials.

"With more than 90% of our dining rooms now open and most others anticipated to open in the next few weeks, we are excited about our continued growth and strong positioning," said Boennighausen, who believes the chain was emerging from the pandemic even stronger than before.

"We were well-positioned going into COVID with our enhanced digital ordering process, a best-in-class rewards program, and simple to use off-premise options, which have enabled us to better serve our guests during this rapidly changing time," he said. "Furthermore, our food inherently travels well, making it optimal for takeout and delivery, which has allowed guests to enjoy our food at home."

Expected 3Q sales highlights include:

• Comparable sales decreased 3.8%, comprised of a 3.6% decrease at company-owned restaurants and a 5 % decrease at franchise restaurants.
• Company-owned average unit volumes were flat versus the prior year at $1.2 million.
• Company-owned comparable sales increased 1.1%.during the 5-week fiscal period ending Sept. 29, 2020 compared to the prior year.
• Company-owned average unit volumes increased 2.4% versus the prior year to $1.2 million during the 5-week fiscal period ending Sept. 29, 2020 compared to the prior year.
• Digital sales during the fiscal September period increased 146% year-over-year.
• Preliminary total revenue of approximately $106.3 million, representing a $12 million decrease versus the prior year due to fewer company operating weeks from prior refranchising activities as well as temporary closures during the COVID-19 pandemic.

Celebrating 25 years
To celebrate its 25th anniversary, Noodles is offering throwback pricing and free delivery for 25 days. The offers kick off Tuesday on the company's namesake holiday — National Noodle Day — when Noodles Rewards members will receive 25% off their orders as a nod to the restaurant's pricing 25 years ago. They also get free delivery from Oct. 7 to 31.

"To say we are grateful for the amazing people who've dined and worked with us for the past 25 year is an understatement — our loyal guests and team members are the heartstring of our business and the reason why we love what we do," Boennighausen said.