Noodles & Company expects to close another 30 to 35 company restaurants this year. | Photo: Shutterstock.
What a difference closing 50 underperforming restaurants can make.
Noodles & Company on Wednesday said comparable same-store sales systemwide so far in the first quarter are up more than 9%, with traffic up more than 4%. The fast-casual chain is only a week shy of its first quarter ending, so those are preliminary results shared during the company’s (quite late) fourth-quarter report.
But the numbers indicate accelerated momentum following a relatively strong fourth quarter, in which same-store sales grew 6.6%, with traffic up 1.4% in company restaurants.
Those are also standout numbers, particularly in the fast-casual segment, where bowl concepts suffered last year as consumers curtailed spending. The news sent the chain’s stock price soaring in after-market trading, up more than 24% to $7.55 per share
“The progress is not accidental. It is the result of disciplined execution and a clear focus on what matters most,” said CEO Joe Christina, who attributed the momentum to the two-year turnaround effort, which has included an overhaul of the menu and a focus on improving operations.
But the fast-casual Noodles also saw a huge benefit from the ongoing review of its portfolio, which resulted in the closure of 33 underperforming company restaurants last year, and another 20 so far in 2026.
Noodles ended fiscal 2025 with 423 restaurants, including 340 company-owned and 83 franchised units. For 2026, the company expects to close a total of 30 to 35 company units (20 of which have already closed) and five franchised locations.
And the portfolio review is ongoing, so there could be more.
Why? Because it’s working.
“We continue to see great results from this ongoing project,” said Mike Hynes, Noodles’ chief financial officer.
Restaurants near the closed units have seen an immediate benefit, particularly in off-premise sales, with better margins and average unit volumes.
The closures alone boosted comparable sales by 100 to 150 basis points in the fourth quarter, Hynes said.
And in the first quarter this year, he estimated same-store sales would see a 200- to 300-basis-point improvement with the closure of the additional 20 units so far.
In the fourth quarter, AUVs at company restaurants grew nearly 10% to $1.4 million.
Christina is also optimistic about the year ahead.
The company is projecting same-store sales growth of 6% to 9% for the full year.
The menu overhaul is resonating with guests, Christina said. The return of Steak Stroganoff in the fourth quarter was a hit, as was a return of Chili Garlic Ramen, which Christina said has been the strongest limited-time offer in the brand’s history.
“The new ramen dish not only resonated with our loyalty members, but also we believe introduced our brand to a new consumer who desired a ramen dish in a fast-casual environment,” he said. “We are currently evaluating additional ramen recipes, as we believe a ramen section of our menu could be as equally successful as our collection of Macs [and cheese].”
The value-positioned Delicious Duos has also been a traffic and frequency booster, without harming margins, he said.
“It also brings awareness of our new menu, due to the combinations Delicious Duos offers,” he said.
Noodles narrowed its net loss in the fourth quarter to $6.8 million, compared with a loss of $9.7 million the prior year. Revenues increased 0.8% to $122.8 million.
For the year, however, the company’s net loss was $42.6 million, compared with a loss of $36.2 million the prior year. Revenues increased 0.4% to $495.1 million.
Last year, Noodles initiated a strategic review, which included the possibility of a sale that would take the company private. Christina acknowledged the review is ongoing, but did not provide any update on plans.
In February, the company announced plans for a reverse stock split that would allow it to continue to trade on the Nasdaq after being warned of possible delisting.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.
