Noodles & Company reported a net loss of $3.1m for the first quarter (Q1) of 2023, compared with a net loss of $6.4m a year ago.
Total revenue for the quarter was $126.1m, an increase of 12% from $112.6m in the Q1 of 2022.
The company attributed the increase in revenue to sales growth in the comparable restaurant base.
System-wide comparable restaurant sales increased by 6.4%.
For the period under review, the loss from operations was $2.2m against a loss of $6.1m in the corresponding period a year ago.
Adjusted net loss was $2.3m in the first quarter versus an adjusted net loss of $5.8m in the same quarter a year ago.
The company’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 218.2%, or $4.8m, to $7m in the first quarter compared to the same quarter of 2022.
Restaurant contribution margin rose to 13.7% as against 9.7% last year.
During the quarter, three company-owned restaurants were opened and two company-owned restaurants were closed.
Commenting on the performance, Noodles & Company CEO Dave Boennighausen said: “Margin expansion and driving profitable sales growth remain our focus to deliver significant improvement in adjusted EBITDA for 2023. Our results in the first quarter were an important step towards this objective.
“Additionally, we continue to make progress in overall restaurant growth with the opening of three new restaurants this quarter and the strengthening of our pipeline for 2023 and beyond.”