Galloway Capital Partners Announces 6.01% Stake in Noodles & Company

Check out the companies making headlines yesterday:

DoorDash : On-demand food delivery service DoorDash (NYSE:DASH)rose by 4.3% on Monday after a director at the company and partner at a major investor, Sequoia Capital, purchased approximately $100 million worth of its shares. See our full article here.

Is now the time to buy DoorDash? Access our full analysis report here.

Chegg : Online study and academic help platform Chegg fell by 8.7% on Monday after the Federal Trade Commission (FTC) took action against peer company Illuminate Education, Inc. over a major data breach. See our full article here.

Is now the time to buy Chegg? Access our full analysis report here.

Red Robin : Burger restaurant chain Red Robin fell by 1.8% on Monday after the company announced the appointment of Christopher Meyer as its interim Chief Financial Officer. See our full article here.

Is now the time to buy Red Robin? Access our full analysis report here.

DraftKings : Fantasy sports and betting company DraftKings rose by 3.1% on Monday after the company received mixed reviews from analysts, with one firm reiterating a "Buy" rating while another cut its price target. See our full article here.

Is now the time to buy DraftKings? Access our full analysis report here.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how modern fast food stocks fared in Q3, starting with Noodles .

Modern fast food is a relatively newer category representing a middle ground between traditional fast food and sit-down restaurants. These establishments feature an expanded menu selection priced above traditional fast food options, often incorporating fresher and cleaner ingredients to serve customers prioritizing quality. These eateries are capitalizing on the perception that your drive-through burger and fries joint is detrimental to your health because of inferior ingredients.

The 7 modern fast food stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.9%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.7% since the latest earnings results.

Noodles

Offering pasta, mac and cheese, pad thai, and more, Noodles & Company is a casual restaurant chain that serves all manner of noodles from around the world.

Noodles reported revenues of $122.1 million, flat year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Noodles scored the biggest analyst estimates beat but had the weakest full-year guidance update of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $0.66.

Is now the time to buy Noodles? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Shake Shack

Started as a hot dog cart in New York City's Madison Square Park, Shake Shack is a fast-food restaurant known for its burgers and milkshakes.

Shake Shack reported revenues of $367.4 million, up 15.9% year on year, outperforming analysts’ expectations by 1%. The business had a very strong quarter with an impressive beat of analysts’ same-store sales estimates and a solid beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 3.9% since reporting. It currently trades at $86.34.

Is now the time to buy Shake Shack? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Sweetgreen

Founded in 2007 by three Georgetown University alum, Sweetgreen is a casual quick service chain known for its healthy salads and bowls.

Sweetgreen reported revenues of $172.4 million, flat year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and full-year EBITDA guidance missing analysts’ expectations significantly.

Sweetgreen delivered the highest full-year guidance raise but had the slowest revenue growth in the group. As expected, the stock is down 4.7% since the results and currently trades at $5.96.

Read our full analysis of Sweetgreen’s results here.

Portillo's

Begun as a Chicago hot dog stand in 1963, Portillo’s is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.

Portillo's reported revenues of $181.4 million, up 1.8% year on year. This print missed analysts’ expectations by 0.7%. Zooming out, it was actually a strong quarter as it recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ same-store sales estimates.

The stock is down 10.5% since reporting and currently trades at $4.69.

Read our full, actionable report on Portillo's here, it’s free for active Edge members.

Chipotle

Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.

Chipotle reported revenues of $3.00 billion, up 7.5% year on year. This number was in line with analysts’ expectations. However, it was a slower quarter as it recorded a miss of analysts’ EBITDA estimates and revenue in line with analysts’ estimates.

The stock is down 22.9% since reporting and currently trades at $30.71.

Read our full, actionable report on Chipotle here, it’s free for active Edge members.

Noodles & Company’s third quarter drew a positive reaction from the market, with management highlighting improving sales momentum and enhanced operational discipline. CEO Joe Christina pointed to the strong performance of new menu items, the success of the Delicious Duos value platform, and improved digital sales channels as key factors. Christina specifically noted, “Comparable sales grew 4% in the third quarter, improving sequentially each month,” attributing this to deliberate investments in menu innovation and targeted marketing. The company also benefited from closing underperforming restaurants, transferring sales volume to higher-performing locations and supporting bottom-line improvement.

Is now the time to buy NDLS? Find out in our full research report (it’s free for active Edge members).

Noodles (NDLS) Q3 CY2025 Highlights:

• Revenue: $122.1 million vs analyst estimates of $119.8 million (flat year on year, 1.9% beat)
• Adjusted EPS: -$0.10 vs analyst estimates of -$0.11 (in line)
• Adjusted EBITDA: $6.50 million vs analyst estimates of $5.78 million (5.3% margin, 12.4% beat)
• The company slightly lifted its revenue guidance for the full year to $493.5 million at the midpoint from $491 million
• Operating Margin: -0.5%, up from -1.8% in the same quarter last year
• Locations: 435 at quarter end, down from 471 in the same quarter last year
• Same-Store Sales rose 4% year on year (-3.3% in the same quarter last year)
• Market Capitalization: $35.11 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Noodles’s Q3 Earnings Call

• Todd Brooks (The Benchmark Company) asked about the effectiveness and repeat rates of the Delicious Duos platform. CEO Joseph Christina explained that the platform is attracting both new and existing guests, and that a steady mix of 4% to 5% supports menu upselling opportunities.

• Todd Brooks (The Benchmark Company) inquired about traffic growth excluding the benefit from closed store sales transfers. CFO Michael Hynes clarified that organic traffic remained positive even after accounting for the approximately 1% lift from transferred sales.

• Todd Brooks (The Benchmark Company) questioned the potential for Chili Garlic Ramen to become a permanent menu item. Christina responded that while it’s too early to commit, the dish is performing well and its future status will be evaluated after the promotion ends.

• Ivan Yu (Jefferies Group) asked about the margin benefit from closures in the third quarter. Hynes reported a $300,000 adjusted EBITDA benefit in Q3, with more substantial impact expected as closures accelerate.

• Ivan Yu (Jefferies Group) sought details on the fourth quarter’s check benefit as the company laps last year’s heavy discounts. Hynes noted that the majority of the check increase would normalize post-Thanksgiving, leading to more typical year-over-year comparisons in December.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be closely tracking (1) the sustained impact of new menu launches and limited-time offerings on both traffic and average check, (2) the execution and financial effects of further restaurant closures as the company optimizes its portfolio, and (3) the effectiveness of cost-saving initiatives, including labor model adjustments and marketing efficiency improvements. Updates on the strategic alternatives review will also be a key area of focus.

Noodles currently trades at $0.72, up from $0.66 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

Our Favorite Stocks Right Now

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return).

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the modern fast food stocks, including CAVA and its peers.

Modern fast food is a relatively newer category representing a middle ground between traditional fast food and sit-down restaurants. These establishments feature an expanded menu selection priced above traditional fast food options, often incorporating fresher and cleaner ingredients to serve customers prioritizing quality. These eateries are capitalizing on the perception that your drive-through burger and fries joint is detrimental to your health because of inferior ingredients.

The 7 modern fast food stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.9%.

While some modern fast food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.8% since the latest earnings results.

CAVA

Starting from a single Washington, D.C. location, CAVA operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.

CAVA reported revenues of $292.2 million, up 19.9% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year EBITDA guidance missing analysts’ expectations and a slight miss of analysts’ same-store sales estimates.

CAVA scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 2.7% since reporting and currently trades at $49.35.

Read our full report on CAVA here, it’s free for active Edge members.

Best Q3: Shake Shack

Started as a hot dog cart in New York City's Madison Square Park, Shake Shack is a fast-food restaurant known for its burgers and milkshakes.

Shake Shack reported revenues of $367.4 million, up 15.9% year on year, outperforming analysts’ expectations by 1%. The business had a very strong quarter with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $92.35.

Is now the time to buy Shake Shack? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Sweetgreen

Founded in 2007 by three Georgetown University alum, Sweetgreen is a casual quick service chain known for its healthy salads and bowls.

Sweetgreen reported revenues of $172.4 million, flat year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations.

Sweetgreen delivered the highest full-year guidance raise but had the slowest revenue growth in the group. As expected, the stock is down 16.5% since the results and currently trades at $5.22.

Read our full analysis of Sweetgreen’s results here.

Noodles

Offering pasta, mac and cheese, pad thai, and more, Noodles & Company is a casual restaurant chain that serves all manner of noodles from around the world.

Noodles reported revenues of $122.1 million, flat year on year. This result topped analysts’ expectations by 1.9%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

Noodles achieved the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 8.3% since reporting and currently trades at $0.72.

Read our full, actionable report on Noodles here, it’s free for active Edge members.

Portillo's

Begun as a Chicago hot dog stand in 1963, Portillo’s is a casual restaurant chain that serves Chicago-style hot dogs and beef sandwiches as well as fries and shakes.

Portillo's reported revenues of $181.4 million, up 1.8% year on year. This number missed analysts’ expectations by 0.7%. Zooming out, it was actually a strong quarter as it produced a beat of analysts’ EPS estimates and a solid beat of analysts’ same-store sales estimates.

The stock is down 10.2% since reporting and currently trades at $4.71.

Read our full, actionable report on Portillo's here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

What Happened?

Shares of casual restaurant chain Noodles & Company 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.

Is now the time to buy Noodles? Access our full analysis report here.

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.

The biggest winners—Microsoft, Alphabet, Coca-Cola, Monster Beverage—were all riding powerful megatrends before Wall Street caught on. We’ve just identified an under-the-radar profitable growth stock positioned at the center of the AI boom. Get it FREE here before the crowd discovers it. GO HERE NOW.