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Noodles & Company (NDLS+0.37%) has submitted its 10-Q filing for the quarterly period ended October 1, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $122.8 million from $127.9 million in the same quarter the previous year. The decrease is attributed to a decline in comparable restaurant sales and the refranchising of six company-owned restaurants.
Cost of sales for the quarter was $30.7 million, representing 25.5% of restaurant revenue, compared to 25.1% in the same quarter of the previous year. This increase is due to inflation and menu mix shifts.
The company reported a net loss of $6.8 million for the quarter, compared to a net income of $0.7 million in the previous year, with the decline attributed to sales deleverage and increased operating costs.
General and administrative expenses increased to $12.9 million from $11.9 million, primarily due to costs associated with the company's bi-annual national summit and obsolete inventory related to menu changes.
Net cash provided by operating activities was $17.5 million, down from $27.3 million in the previous year. Cash used in investing activities was $22.9 million, primarily for new restaurant openings and technology investments.
Noodles & Company had a working capital of $3.3 million as of October 1, 2024. The company maintains its credit facility with U.S. Bank National Association (USB-2.16%), with $89.9 million of indebtedness outstanding.
The filing also details amendments to the company's credit agreement, including changes to interest rate ranges and leverage ratios.
Noodles & Company does not anticipate material income tax expense or benefit for the remainder of fiscal 2024 due to a valuation allowance recorded against deferred tax assets.
The company continues to focus on revitalizing its menu and improving operational efficiencies amidst a challenging consumer environment.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Noodles & Company quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.