Dive Brief:
- Noodles & Company will launch the most significant phase of its comprehensive menu transformation, adding nine new dishes next week, CEO Drew Madsen said in an earnings release Thursday.
- The chain posted positive same-store sales of 0.8% during the fourth quarter, reflecting the rollout of three menu items in October, promotional offers and renewed momentum with third-party delivery, he said.
- Menu innovation became a key focus of the chain’s turnaround strategy last year and Noodles has been working to enhance existing menu items, cut unprofitable ones and add new flavors to its menu.
Dive Insight:
After several troubling quarters, including a delisting warning from Nasdaq, Noodles started the year with positive traffic and comparable restaurant sales growth of over 3%, Madsen said.
“It is an exciting time for Noodles as the sales improvements we have seen starting in the fourth quarter of 2024 combined with our menu re-launch have set the stage for a transformational 2025,” he said.
The next phase of its menu transformation will introduce five totally new dishes and four reimagined recipes from traditional favorites, Madsen said Thursday during an earnings call.
Those items will include Buffalo Chicken Ranch Mac & Cheese with elbow noodles, creamy cheddar and jack cheese sauce, and parmesan-crusted chicken with buffalo sauce, he said. This item had a food score of 11 points higher than the dish it is replacing and 15 points higher than Noodles’ menu average, he said. Roughly 40% more guests ordered the item compared to the dish that it replaced, he said.
Noodles will launch an updated Pesto Cavatappi, which is one of the chain’s oldest and best-selling items, Madsen said. The new recipe replaces Roma tomatoes with fire-roasted tomatoes and shredded parmesan with aged parmesan. It increased the basil pesto sauce by 60% and topped the sauce with fresh herbs. This version of the dish had a food score nine points higher than its current version.
The company expects its makeover to touch about two-thirds of the menu by the end of the second quarter, which represents “the single biggest culinary transformation in Noodles’ 30-year history,” Madsen said.
Test markets revealed a “significant increase” in scores for overall guest satisfaction, taste and value, he said. The new menu items have also attracted new customers.
“Our new menu does a much better job of delivering against what today's customer wants,” Madsen said.
