What Happened?
Shares of casual restaurant chain Noodles & Company (NASDAQ: NDLS) jumped 6.7% in the morning session after the company reported third-quarter 2025 results that beat Wall Street's expectations for revenue and profitability. While total revenue was flat year-on-year at $122.1 million, this figure surpassed analysts' forecasts. A key positive was a 4% increase in same-store sales, marking a significant turnaround from the prior year's decline. The company also delivered an adjusted EBITDA of $6.5 million, which was more than 12% above consensus estimates. Investors appeared to focus on these signs of improving business momentum and a slightly raised full-year revenue forecast, looking past the company's negative operating margin and an adjusted loss of $0.10 per share.
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What Is The Market Telling Us
Noodles’s shares are extremely volatile and have had 83 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 4.3% on the news that the company announced a holiday marketing campaign aimed at boosting sales by positioning its meals as an alternative to pizza for seasonal gatherings. The campaign was based on a survey the company commissioned, which found that 70% of respondents would prefer noodles over pizza during the holidays, citing "pizza fatigue." To attract customers for office parties and family events, Noodles & Company rolled out several promotions. These included discounts on catering pans and larger catering orders. The company also offered a $10 bonus card for every $50 spent on gift cards. Additionally, a giveaway on Instagram was launched, offering a chance to win one of 100 free catering pans.
Noodles is up 28.2% since the beginning of the year, but at $0.75 per share, it is still trading 55.4% below its 52-week high of $1.69 from February 2025. Investors who bought $1,000 worth of Noodles’s shares 5 years ago would now be looking at an investment worth $113.46.
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