Noodles & Company Reports Fourth Quarter and Full Year 2025 Financial Results and 2026 Outlook

BROOMFIELD, Colo., March 25, 2026 – Noodles & Company (Nasdaq: NDLS) announced its financial results for the fourth quarter and full year ended December 30, 2025, along with its business outlook for fiscal year 2026. The company’s latest results and strategic actions present several key developments that investors and shareholders should closely monitor, as they may impact the company’s share value.

Key Financial Highlights – Q4 and Full Year 2025

• Q4 2025 Revenue: Increased by 0.8% to \$122.8 million, up from \$121.8 million in Q4 2024.
• Q4 Comparable Restaurant Sales: Rose 6.6% system-wide, including 7.3% growth in company-owned locations and 3.8% in franchise restaurants.
• Net Loss: Improved to \$6.8 million (or \$1.16 per diluted share), compared to a \$9.7 million loss (\$1.70 per share) in Q4 2024.
• Operating Margin: Narrowed loss to (3.3)% from (6.0)% in the prior year.
• Restaurant Contribution Margin: Increased to 14.1% (from 11.2%).
• Adjusted EBITDA: Nearly doubled to \$7.6 million (from \$4.0 million).

• Full Year 2025 Revenue: Rose slightly to \$495.1 million (from \$493.3 million).
• Full Year Comparable Sales: Up 4.1% system-wide (4.3% company-owned, 3.2% franchise).
• Full Year Net Loss: Widened to \$42.6 million (or \$7.36 per diluted share), compared to a \$36.2 million loss in 2024.
• Operating Margin: (6.4)% versus (5.6)% in 2024.
• Restaurant Contribution Margin: 12.6% (versus 13.2%).
• Adjusted EBITDA: Slight decrease to \$22.5 million (from \$23.6 million).
• Store Portfolio Changes: 2 new company-owned stores opened, 33 closed. Franchise count ended at 83, company-owned at 340, totaling 423 locations.

Key Operational and Strategic Developments

• Strong Sales Momentum: Comparable sales growth exceeded 9% in early 2026, continuing a trend of seven consecutive months of over 4% growth, with monthly average comps above 7%.
• Menu Innovation: Strong customer response to a new menu, the value-oriented “Delicious Duos” offering, and limited-time items such as Ramen and the return of Steak Stroganoff.
• Store Closures and Portfolio Optimization: The company closed underperforming locations, which resulted in sales transfers to nearby stores and contributed to improved margins and baseline average unit volumes.
• Reverse Stock Split: On February 18, 2026, Noodles & Company effectuated a 1-for-8 reverse stock split, reducing the number of shares outstanding and potentially impacting per-share valuation metrics.

Liquidity and Capital Structure

• Cash and Equivalents: \$1.3 million as of December 30, 2025.
• Outstanding Debt: \$110.2 million.
• Credit Facility: \$11.9 million available for future borrowing.

Fiscal Year 2026 Outlook

• Q1 2026 Guidance: Comparable sales growth of ~9%, Adjusted EBITDA of \$5.7–\$6.3 million (more than doubling Q1 2025).
• Full Year 2026 Guidance:
  • Total revenue: \$478–\$493 million (comparable sales growth 6–9%).
  • Restaurant contribution margin: 14.7%–16.0%.
  • G&A expenses: \$49–\$52 million (including \$2.5 million in stock-based compensation).
  • Depreciation & Amortization: \$24–\$25 million.
  • Net interest expense: \$10–\$11 million.
  • Adjusted EBITDA: \$30–\$35 million.
  • Openings/Closures: 1–2 new franchise restaurants, closure of 30–35 company-owned and 5 franchised locations.
  • Capital expenditures: \$9.5–\$10.5 million.

Key Issues for Shareholders and Potential Price-Sensitive Developments

• Improving Margins and EBITDA: The company’s near doubling of Q4 Adjusted EBITDA and significant improvements in operating and restaurant contribution margins are positive developments that may signal operational turnaround potential.
• Accelerating Sales Trends: The strong start to 2026 with >9% comp sales growth and ongoing menu innovation could positively impact future revenue and profitability if sustained.
• Reverse Stock Split: The 1-for-8 reverse stock split may affect the share price by increasing the per-share valuation and could support continued Nasdaq listing, but also reflects past share price pressures.
• Continued Net Losses and Store Closures: Despite sales and margin improvements, the company remains unprofitable with another year of widening net losses and planned closures of up to 35 company-owned and 5 franchise restaurants in 2026, which may weigh on investor sentiment.
• Liquidity Concerns: With only \$1.3 million in cash and significant debt, liquidity remains tight, though the company has access to additional credit.
• Outlook Risks: The outlook includes several uncertainties tied to economic conditions, supply chain, labor costs, and the outcome of any strategic transactions.

Conclusion

The latest results from Noodles & Company show a company in transition, with encouraging sales trends, improved restaurant-level economics, and bold portfolio actions. However, persistent net losses, high leverage, and substantial planned store closures pose ongoing risks. The reverse stock split and 2026 outlook are likely to draw investor focus and could be catalysts for share price volatility.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors should conduct their own analysis and consult with professional advisors before making investment decisions. All forward-looking statements are subject to risks and uncertainties as outlined by Noodles & Company in its filings with the SEC.

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