Noble Roman's, Inc.

The company said pre-tax income was $578,918 for the quarter versus $193,314 in 2024. Total revenue was up 6.8% year over year. Same-store sales in Craft Pizza & Pub rose 4.2%, and CPP margins increased to 12.8% from 7.9% a year ago. Convenience store program margin contribution rose 14.8% to about $1.1 million, with the margin rate improving to 73.4% from 65.2%. Trailing 12-month adjusted EBITDA was approximately $3,825,000 at the end of Q3, up from $3,501,000 at the end of Q2 and $3,135,000 at the end of Q1 2025. For Q4, management expects about 27 additional new units to open during the quarter, and said it has already opened 13 this quarter, with 3 new locations opening this week. They also said they expect to finish the year at about 57 to 60 franchise openings, and noted the current debt agreement with Corbel runs through the end of June 2026.

Scott Mobley said the company is navigating weak consumer sentiment by leaning into value while also introducing premium items to protect margins. He emphasized a two-track strategy: use the XL pizza line and other value promotions to drive traffic, while pushing higher-margin items like Stuffed Crust and the planned Spicy Buffalo Chicken Pizza. He sounded constructive on unit growth and said the convenience store rollout is moving along despite timing issues from tariffs and the government shutdown.

Paul Mobley highlighted improving cost control, saying cost of sales was 20.8% in Q3 versus 21.4% last year, and 20.7% for the first nine months versus 21.1% a year ago. On debt, he said the current loan terms are signed through June 2026 and management is still paying down principal aggressively without losing cash flow; he added that the company is “gaining a little cash all the time.” He also said the company still owes approximately $6 million to Corbel.

Analysts asked about the refinancing process, the amount still owed to Corbel, unit openings, the Majors development agreement, commodity costs, and whether value promotions were hurting sales. Management said the Corbel balance is approximately $6 million, that no new agreement has been added to the Majors plan yet, and that cheese is around the 10-year average while meat and chicken remain pressured by shortages and avian flu. On same-store sales, management said early Q4 was choppy due to external events and government shutdown effects, but underlying sales trends improved when those disruptions passed.