Noodles & Company, trading under the ticker symbol "NDLS" on the NASDAQ, is a well-established fast-casual restaurant chain in the United States that offers a diverse menu of globally-inspired noodle dishes, soups, and salads. The company was founded in 1995 by Aaron Kennedy in Colorado, with the primary idea of providing high-quality, fresh ingredients noodle meals from different cultures right to the plates of Americans.
As of July 2021, Noodles & Co had more than 450 restaurant locations spread across 29 states and Washington, D.C., marking its firm footprint in the country. It operates both company-owned and franchise business models to expand its reach and lower operational risks. The restaurants primarily attract customers with their wide range of items from mac & cheese for the kids, to penny rosa pasta for the evening dinners, to gluten-sensitive dishes for individuals with particular dietary needs, thereby targeting different demographics effectively.
Financially, Noodles & Co has seen a pattern of highs and lows. At the end of fiscal year 2020, the company reported revenues of approximately $392 million down from the previous year due to COVID-19 implications. Yet, strategies such as implementing mobile order and digital platforms have enabled the business to bounce back in the pandemic environment. It has seen significant digital sales growth which accounted for about 56% of total sales in the year 2020.
Notably, NDLS follows a highly ethically responsible approach to conduct its business and maintains the standard of sustainability, ensuring their food is made fresh without using any artificial ingredients. Noodles & Company also has various charitable initiatives, including partnering with No Kid Hungry to tackle childhood hunger in the United States.
In a nutshell, Noodles & Co, despite the challenges in the fast-casual dining industry, has continued to flourish by tapping into digital advancements, diversifying their menu and acting responsibly towards their customers, community, and the environment. The NDLS stock is certainly one to watch for investors interested in the restaurant industry. The company's growth strategies combined with its commitment to environmental sustainability and social responsibility embody the future direction of fast-casual dining.