Page 1

noodles & COMPANY Noodles & Company Announces Third Quarter 2021 Financial Results October 27 , 2021 System - wide Comparable Restaurant Sales Growth of 16.3 % , Record Company Average Unit Volumes of $ 1.38M BROOMFIELD , Colo . , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) -- Noodles & Company ( Nasdaq : NDLS ) today announced financial results for its third quarter ended September 28 , 2021 . Key highlights for the third quarter of 2021 versus the third quarter of 2020 include : • Total revenue increased 18.1 % to $ 125.1 million from $ 106.0 million in the third quarter of 2020 . • Comparable restaurant sales increased 16.3 % system - wide , comprised of a 15.3 % increase at company - owned restaurants and a 21.0 % increase at franchise restaurants . • Record Company Average Unit Volumes of $ 1.38 million represented a 16.0 % increase compared to the third quarter of 2020 and a 15.9 % increase versus the third quarter of 2019 . • Net income was $ 4.7 million , or $ 0.10 per diluted share , compared to net loss of $ 0.1 million , or $ 0.00 per diluted share in the third quarter of 2020 . Operating margin was 4.3 % compared to operating margin of 0.7 % in the third quarter of 2020 . • Restaurant contribution margin ( 1 ) was 18.1 % compared to 15.4 % in the third quarter of 2020 . • Adjusted EBITDA ( 1 ) was $ 13.2 million , an increase of $ 5.5 million compared to the third quarter of 2020 . ● Adjusted net income ( 1 ) was $ 5.3 million , or $ 0.12 per diluted share compared to adjusted net income of $ 0.7 million , or $ 0.01 per diluted share , in the third quarter of 2020 . • Net debt ( ¹ ) decreased to $ 19.1 million compared to $ 34.2 million at the end of the fourth quarter 2020 . ( 1 ) Restaurant contribution margin , EBITDA , adjusted EBITDA , adjusted net income and net debt are non - GAAP measures . Reconciliations of operating income ( loss ) to restaurant contribution margin , net income ( loss ) to EBITDA and adjusted EBITDA , net income ( loss ) to adjusted net income and debt to net debt are included in the accompanying financial data . See " Non - GAAP Financial Measures . " " We are very pleased to report another quarter of record high average unit volumes , reflecting the continued momentum of the Noodles & Company brand and our ability to remain resilient in volatile market conditions , " said Dave Boennighausen , Chief Executive Officer of Noodles & Company . " Our results in the third quarter were driven by strength across all channels , with continued retention in our digital offering and further acceleration within our in - restaurant business . Our average unit volumes reached $ 1.38 million , representing a 15.9 % increase compared to the third quarter of 2019 . Additionally , we achieved a 270 bps expansion in restaurant contribution margin to 18.1 % despite an inflationary environment . " Boennighausen continued , " Our business fundamentals remain strong , and we have never been more encouraged by the Noodles & Company growth opportunity , both from a restaurant economics and a unit growth basis . While we anticipate continued volatility through the balance of the year due to the current staffing and supply chain environment , the progress we have made towards our accelerated growth objectives gives us further confidence in our ability to successfully navigate any market condition . " Third Quarter 2021 Financial Results Total revenue grew 18.1 % to $ 125.1 million in the third quarter of 2021 , compared to $ 106.0 million in the third quarter of 2020. This growth was due to an increase in system - wide comparable restaurant sales as well as new restaurant openings performing at higher levels than historical openings . In the third quarter of 2021 , system - wide comparable restaurant sales increased 16.3 % , comprised of a 15.3 % increase at company - owned restaurants and a 21.0 % increase at franchise restaurants . Comparable restaurant sales reflect continued strength in both digital and in - person channels . Digital sales during the third quarter accounted for 52 % of total revenue . Company average unit volumes , which normalize for the impact of temporary restaurant closures , increased 16.0 % over the third quarter of 2020 and 15.9 % compared to the third quarter of 2019 . Operating margin increased to 4.3 % from 0.7 % in the third quarter of 2020 primarily due to leverage on increased average unit volumes . Restaurant contribution margin increased to 18.1 % in the third quarter of 2021 , compared to 15.4 % in the third quarter of 2020. This increase was primarily due to leverage on increased average unit volumes in addition to the benefit of labor efficiency initiatives , partially offset by inflationary pressures on cost of goods and team member appreciation bonuses , particularly in the back half of the quarter . The safety and well - being of our team members and guests remains our highest priority and we continue to actively monitor and adhere to local and federal mandates as it relates to in - restaurant dining and safety protocols . As of October 25 , 2021 , substantially all company - owned and franchise locations are offering in - restaurant dining at varying capacities . There were two company - owned restaurant openings during the third quarter of 2021 which included one restaurant that was closed and relocated . In the third quarter of 2021 , we closed the aforementioned company - owned restaurant and had one franchise location close due to eminent domain . There were 450 restaurants system - wide at the end of the third quarter 2021 , comprised of 374 company - owned restaurants and 76 franchise restaurants . Recent openings that are not in the Company's comparable restaurant base , most offering order ahead drive - thru pick - up windows ,