Noodles & Company CEO Drew Madsen outlined his plan to turn around the fast-casual chain during an earnings call to discuss a punishing fourth quarter for the chain.

Madsen, who had been appointed interim CEO in November following the departure of his predecessor Dave Boennighausen, was named the company’s permanent CEO right before the call.

Total revenue in the quarter ended Jan. 2, 2024, fell by 8.9% to $124.3 million, and same-store sales were down by 4.2%. The company reported a net loss of $6.1 million or 14 cents per share.

Operating margins were down by 50 basis points to 14.7%.

For the year, revenue was down by 1.2% to $503.4 million and same-store sales were down by 1.9%. Noodles booked a net loss of $9.9 million or 21 cents per share.

Central to the plan to turn the brand around is an overhaul of the menu, which Madsen said looks dated, and while it offers familiar and comforting dishes that the chain’s regulars enjoy, “we are not currently a compelling alternative for lapsed guests or new guests.”

For more on what's going on at the restaurant chain, let's turn to senior editor Bret Thorn.