From Nation's Restaurant News · · 1m 30s
Noodles & Company’s turnaround remains work in progress
Noodles & Company’s financial recovery shows progress but debt and closures persist.
In brief
Noodles & Company’s financial recovery shows progress but debt and closures persist. Noodles & Company reported stronger sales and traffic but continues to face debt and store closures as part of its turnaround strategy. Originally reported by Nation's Restaurant News.
Financial results mixed
Noodles & Company reported stronger traffic and sales growth but continued losses and debt.
Third quarter results
Noodles & Company reported 9.5% same-store sales growth and 7.8% traffic increase for company-owned stores.
Store closures
14 restaurants closed in the last quarter as part of portfolio optimization strategy.
Debt and cash position
Company reported $101 million debt and $1.5 million available cash with 0.1% operating margins.
Ramen platform success
Ramen launched as LTO in October 2025 and now permanent menu category due to popular demand.
Eighth consecutive quarter
Noodles & Company achieved eighth consecutive quarter of positive same-store sales growth.
AUVs and margins
AUVs increased by 15.2% while restaurant-level margins rose 3.5 points to 16.7%.
2026 closure target
Company plans to close 41 to 44 restaurants by end of 2026 with possible closures into 2027.
CEO statement
CEO Joe Christina emphasized focus on organizational capabilities and financial discipline for continued growth.
Stock reaction
Noodles stock dropped 12% after earnings report publication.
Financial outlook
Company expects improved operating margins and reduced debt in 2027.
The short version
Noodles & Company reported stronger sales and traffic but continues to face debt and store closures as part of its turnaround strategy.
