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NOODLES & Co (NDLS) Fundamental Analysis & AI Grade 2026

NDLS Nasdaq Retail-Eating Places CIK: 0001275158
Updated This Month • Analysis: May 8, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
88% Confidence
STRONG AGREEMENT
D
92% Conf
D
85% Conf

📊 NDLS Key Takeaways

Revenue: $123.8M
Net Margin: -2.8%
Free Cash Flow: $3.9M
Current Ratio: 0.28x
Debt/Equity: N/A
EPS: $-0.58
AI Grade: D with 92% confidence
NOODLES & Co (NDLS) receives a D fundamental grade with 88% confidence from our AI analysis based on SEC 10-K filings. With revenue of $123.8M, net profit margin of -2.8%, NOODLES & Co demonstrates mixed fundamentals in the Consumer sector. Below is our complete NDLS stock analysis for 2026.

Is NOODLES & Co (NDLS) a Good Investment?

Claude

Noodles & Co exhibits severe financial distress with negative stockholders' equity (-$48M), indicating balance sheet insolvency, combined with unprofitable operations (net margin -2.8%) and a liquidity crisis (current ratio 0.28x). While operating cash flow remains positive, the company cannot cover interest expenses and possesses only $1.4M in cash against $294.4M in liabilities, creating acute financial risk.

ChatGPT

Noodles & Co is posting persistent operating and net losses with negative shareholders’ equity, severe liquidity constraints, and insufficient interest coverage. Revenue growth is flat and free cash flow is negative, limiting internal capacity to fund a turnaround. Without rapid margin improvement and liquidity relief, financial risk dominates the outlook.

NOODLES & Co Key Strengths (NDLS)

Claude
  • + Positive operating cash flow ($6.0M) providing short-term flexibility
  • + Positive free cash flow ($3.9M) despite operating losses
  • + Stable revenue base ($123.8M) in established quick-service restaurant sector
ChatGPT
  • + Stable revenue base (+0.4% YoY)
  • + Positive operating cash flow ($7.28M)
  • + FCF near breakeven (-1.0% margin) offers potential leverage to small efficiency gains

NDLS Stock Risks: NOODLES & Co Investment Risks

Claude
  • ! Negative stockholders' equity of -$48M indicating balance sheet insolvency
  • ! Critical liquidity crisis with current ratio of 0.28x and quick ratio of 0.13x
  • ! Unprofitable operations with negative net income (-$3.4M) declining 17.5% YoY
  • ! Unable to cover interest obligations with negative interest coverage ratio
  • ! Minimal cash reserves ($1.4M) insufficient for $294.4M liability obligations
  • ! High leverage with $105.6M long-term debt relative to negative equity
ChatGPT
  • ! Severe liquidity pressure (current ratio 0.31x, quick 0.14x; cash $1.26M)
  • ! Negative equity and leverage with inadequate interest coverage (-5.2x)
  • ! Sustained and worsening losses (net income -$42.57M, -17.5% YoY)

Key Metrics to Watch

Claude
  • * Operating cash flow sustainability and burn rate
  • * Debt covenant compliance and refinancing risk
  • * Path to profitability and operating margin improvement
  • * Revenue growth acceleration beyond current 0.4% YoY
  • * Cash balance changes and working capital management
ChatGPT
  • * Interest coverage
  • * Liquidity (current/quick ratios and cash balance)

NOODLES & Co (NDLS) Financial Metrics & Key Ratios

Revenue
$123.8M
Net Income
$-3.4M
EPS (Diluted)
$-0.58
Free Cash Flow
$3.9M
Total Assets
$246.3M
Cash Position
$1.4M

💡 AI Analyst Insight

The relatively thin 3.2% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.

NDLS Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin -0.7%
Net Margin -2.8%
ROE N/A
ROA -1.4%
FCF Margin 3.2%

NDLS vs Consumer Sector: How NOODLES & Co Compares

How NOODLES & Co compares to Consumer sector averages

Net Margin
NDLS -2.8%
vs
Sector Avg 8.0%
NDLS Sector
ROE
NDLS 0.0%
vs
Sector Avg 18.0%
NDLS Sector
Current Ratio
NDLS 0.3x
vs
Sector Avg 1.5x
NDLS Sector
Debt/Equity
NDLS 0.0x
vs
Sector Avg 0.8x
NDLS Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is NOODLES & Co Stock Overvalued? NDLS Valuation Analysis 2026

Based on fundamental analysis, NOODLES & Co has mixed fundamental signals relative to the Consumer sector in 2026.

Return on Equity
N/A
Sector avg: 18%
Net Profit Margin
-2.8%
Sector avg: 8%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.8x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

NOODLES & Co Balance Sheet: NDLS Debt, Cash & Liquidity

Current Ratio
0.28x
Quick Ratio
0.13x
Debt/Equity
N/A
Debt/Assets
119.5%
Interest Coverage
-0.13x
Long-term Debt
$105.6M

NDLS Revenue & Earnings Growth: 5-Year Financial Trend

NDLS 5-year financial data: Year 2020: Revenue $462.4M, Net Income -$8.4M, EPS $-0.20. Year 2021: Revenue $475.2M, Net Income $1.6M, EPS $0.04. Year 2022: Revenue $509.5M, Net Income -$23.3M, EPS $-0.53. Year 2024: Revenue $509.5M, Net Income $3.7M, EPS $0.08. Year 2025: Revenue $503.4M, Net Income -$9.9M, EPS $-1.72.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: NOODLES & Co's revenue has shown modest growth of 9% over the 5-year period. The most recent EPS of $-1.72 indicates the company is currently unprofitable.

NDLS Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
3.2%
Free cash flow / Revenue

NDLS Quarterly Earnings & Performance

Quarterly financial performance data for NOODLES & Co including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $123.8M -$3.4M $-0.58
Q3 2025 $122.1M -$6.8M $-0.15
Q2 2025 $126.4M -$13.6M $-0.30
Q1 2025 $121.4M -$6.1M $-0.14
Q3 2024 $122.8M $700.0K $0.02
Q2 2024 $125.2M -$1.3M $-0.03
Q1 2024 $121.4M -$3.1M $-0.07
Q3 2023 $127.9M $700.0K $0.02

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

NOODLES & Co Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$6.0M
Cash generated from operations
Capital Expenditures
$2.1M
Investment in assets
Dividends
None
No dividend program

NDLS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for NOODLES & Co (CIK: 0001275158)

📋 Recent SEC Filings

Date Form Document Action
May 19, 2026 4 xslF345X06/wk-form4_1779236981.xml View →
May 19, 2026 4 xslF345X06/wk-form4_1779236975.xml View →
May 19, 2026 4 xslF345X06/wk-form4_1779236969.xml View →
May 19, 2026 4 xslF345X06/wk-form4_1779236963.xml View →
May 19, 2026 4 xslF345X06/wk-form4_1779236958.xml View →

Frequently Asked Questions about NDLS

What is the AI rating for NDLS?

NOODLES & Co (NDLS) has a Combined AI Grade of D from Claude (D) and ChatGPT (D) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.

What are NDLS's key strengths?

Claude: Positive operating cash flow ($6.0M) providing short-term flexibility. Positive free cash flow ($3.9M) despite operating losses. ChatGPT: Stable revenue base (+0.4% YoY). Positive operating cash flow ($7.28M).

What are the risks of investing in NDLS?

Claude: Negative stockholders' equity of -$48M indicating balance sheet insolvency. Critical liquidity crisis with current ratio of 0.28x and quick ratio of 0.13x. ChatGPT: Severe liquidity pressure (current ratio 0.31x, quick 0.14x; cash $1.26M). Negative equity and leverage with inadequate interest coverage (-5.2x).

What is NDLS's revenue and growth?

NOODLES & Co reported revenue of $123.8M.

Does NDLS pay dividends?

NOODLES & Co does not currently pay dividends.

Where can I find NDLS SEC filings?

Official SEC filings for NOODLES & Co (CIK: 0001275158) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is NDLS's EPS?

NOODLES & Co has a diluted EPS of $-0.58.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is NDLS's fundamental grade?

Based on our AI fundamental analysis in May 2026, NOODLES & Co has a D grade with 88% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is NDLS stock overvalued or undervalued?

Valuation metrics for NDLS: ROE of N/A (sector avg: 18%), net margin of -2.8% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.

What is NDLS's AI grade for 2026?

Our dual AI analysis gives NOODLES & Co a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is NDLS's free cash flow?

NOODLES & Co's operating cash flow is $6.0M, with capital expenditures of $2.1M. FCF margin is 3.2%.

How does NDLS compare to other Consumer stocks?

Vs Consumer sector averages: Net margin -2.8% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.28 (avg: 1.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 8, 2026 | Data as of: 2026-03-31 | Powered by Claude AI