With its transformation efforts showing signs of traction, Noodles & Company is getting ready to launch its biggest menu overhaul in company history next week with the brand strategy: “We know noodles.”
Drew Madsen, the Broomfield, Colorado-based chain’s CEO, said he is very encouraged by indications of a turnaround. As previously announced for the fourth quarter, systemwide same-store sales were up 0.8% with traffic down 0.1%, or basically flat—which was a big improvement from the 5.8% decline in traffic in the prior third quarter.
More encouraging, though, was a 3% increase in same-store sales during the first eight weeks of this year, which included positive traffic, Madsen said.
And coming next week is the next wave in a comprehensive menu upgrade that has been in the works for about two years, with help from consulting firm The Culinary Edge. This follows the debut of three new dishes last year as teasers, including Lemon Garlic Shrimp Scampi, Chipotle Chicken Cavatappi and Crispy Chicken Bacon Alfredo.
Next week, the chain will unveil nine dishes, including five that are new to the menu and four traditional favorites that have been reimagined. By the end of the second quarter, two thirds of the menu will be new or improved, Madsen said.
He didn’t reveal all details, but fans of mac and cheese will be happy. Madsen promised a whole new lineup.
One of the new dishes will be a Buffalo Chicken Ranch Mac and Cheese, for example, with elbow noodles in a creamy cheddar and jack cheese sauce with parmesan-crusted chicken, topped with Buffalo sauce, green onions, crispy onions and a drizzle of ranch.
Another dish coming is a new-and-improved Basil Pesto Cavatappi—one of Noodles’ oldest and best-selling dishes. This version will feature fire-roasted tomatoes (rather than Roma) and aged parmesan (rather than shredded). The dish will also have a 60% increase in sauce and will be topped with fresh herbs.
The latter had a taste-of-food score that was nine points above the current version, he said. “In addition, more than 20% of orders for this improved dish are from new guests, despite limited marketing support to build awareness,” Madsen said.
The menu launch will be accompanied by a comprehensive marketing push to build brand awareness of the new dishes, followed by a campaign in May to deepen engagement. The chain expects to double its year-over-year investment in marketing over the next few months, Madsen said.
Overall, Noodles wants to reclaim its pasta expertise.
“We believe we are the only restaurant chain of scale to offer a variety of expertly crafted noodle bowls across cuisine types,” Madsen said. “This is what we do, and we will do it better than anyone else.”
Madsen said Noodles has also fixed its third-party delivery pricing problem, which had dragged down sales in the third quarter last year. A revised pricing and promotion strategy has brought double-digit traffic growth through that channel, he said.
His confidence was reflected in the chain’s guidance for the year. The company expects same-store sales growth in the mid-single digits, with revenue between $503 million to $512 million, and two new restaurant openings.
The 463-unit chain, however, shuttered six underperforming company units in the fourth quarter, and three franchised units also closed, as part of an ongoing review of the portfolio.
In 2025, another 12 to 15 underperforming company restaurants are expected to close, along with another four franchised locations. Two company units are expected to open.
Madsen said they are continuing to work with landlords to determine future potential closures on a case-by-case basis.
Noodles’ stock price dropped more than 7% on Thursday, but then climbed in after-hours trading more than 20% to $1.50 per share, which was still well below its 52-week high of $2.55. The company, however, has successfully kept its stock price above $1 per share since late January after receiving a warning that it could face delisting.
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