NDLS

This story was originally published on QSR. To receive daily news and insights, subscribe to our free daily QSR AM Jolt. Noodles & Company spent the past year rebuilding its operating model, closing underperforming restaurants, boosting its menu pipeline, and changing how it reaches consumers. The fast casual’s Q2 results prove the work is taking hold. Systemwide same-store sales increased 10.3 percent, including an 11.4 percent jump at company-owned restaurants and 5.5 percent growth at franchised locations. Company traffic rose 7.6 percent, meaning most of the sales improvement came from more visits instead of price. Average check increased 3.8 percent, including 2.1 percent effective pricing. The performance marked Noodles’ strongest Q2 comps growth since becoming a public company in 2013. Momentum carried into the third quarter, with company-owned same-store sales up roughly 10 percent quarter to date. “When I step back and look at the progress we’ve made, I believe it’s clear that Noodles is back,” CEO Joe Christina said during the brand’s Q2 earnings call. “Not because of one quarter or one campaign, but because we’ve built an organization that’s consistently executing.” READ MORE: Noodles & Company’s Turnaround Strategy is Clicking Noodles & Company Finds Momentum After Year of Reset Noodles’ restaurant-level margin expanded 440 basis points year-over-year, from 12.8 percent to 17.2 percent, its highest level in five years. Adjusted EBITDA increased 79 percent to $10.8 million, versus $6 million in the prior-year period. Through the first half of 2026, the company more than doubled adjusted EBITDA compared with the same stretch last year. Company AUV climbed 15.9 percent to $1.57 million. Christina said same-store sales have been positive—and increasingly so—for 18 months. The chain’s sales and traffic growth also surpassed the fast-casual Black Box Index during the past year. “We aren’t looking for one big breakthrough,” Christina said. “We’re focused on making hundreds of small improvements every day, and together, those improvements create a meaningfully better guest experience.” At the restaurant level, Noodles continues to rely on an operating playbook introduced last year. It concentrates on hospitality, consistent execution throughout the day, stronger dinner operations, and greater accountability. Management believes the approach is becoming ingrained in the company’s culture. Nearly three-quarters of general manager openings and approximately 70 percent of all restaurant management positions were filled through internal promotions during Q2. Hourly employee retention also improved. Noodles closed two company-owned and two franchised restaurants during Q2. It expects to shut down 30 to 35 corporate locations and five franchised restaurants across 2026. The brand is capturing approximately one-third of sales from closed restaurants at nearby locations, Christina said. The chain’s high off-premises mix and brand recognition have allowed sales to transfer across a wider area than management initially anticipated. The impact added an estimated 250 to 300 basis points to second-quarter same-store sales. It also lifted AUVs and improved efficiency at the restaurants receiving those customers. Menu innovation has become another important piece of the recovery. The chain now has a consistent restaurant-testing process and an 18-month development calendar containing potential limited-time offers and permanent additions. Noodles leaned into its Asian menu during Q2 by bringing back Indonesian Peanut Sauté and Chili Garlic Ramen. The Asian category’s menu mix increased 42 percent during the promotion. The share of customers ordering an Asian entrée climbed from 12.5 percent before the campaign to 17.8 percent during it. Core entrées remained strong, indicating that the returning dishes generated incremental demand instead of shifting orders from other menu items. The customer mix was equally encouraging. About 65 percent of participating guests were new to Noodles. The other 35 percent were existing customers trying an Asian entrée for the first time. Noodles plans to launch multiple ramen dishes in the fourth quarter and is still determining whether they will remain limited-time offers or eventually join the permanent menu. The company also introduced Chicken Artichoke and Asparagus Rigatoni in May through a partnership with Chrissy Teigen’s Cravings brand. Christina said the collaboration helped Noodles reach a target customer demographic and expand awareness. Mac & Cheese remains the chain’s best-known platform. Noodles supported it during the third quarter with Mac Month and an exclusive Coca-Cola partnership featuring a Fanta Vanilla Cherry Spritz developed to pair with the lineup. The beverage has gained traction among younger consumers and generated earned media and social conversation, Christina said. The brand will introduce another limited-time dish on August 5. It will be a baked offering inspired by guest demand that performed well in testing. Noodles also improved how it communicates its food quality. Consumer research showed that fresh preparation and ingredients are major drivers of quality and value perceptions, especially among younger diners. That insight led to the “Made Right, Right Now” campaign, which showcases bowls being cooked to order over open sauté pans. It was the company’s strongest-performing paid-media creative of the quarter, producing its highest video completion rates and generating more website traffic and attributed purchases than other campaigns across Meta and TikTok. Noodles nearly doubled its total media impressions year-over-year despite increasing spending by only about 6 percent. The company has placed more of its investment into creator partnerships and platforms such as TikTok, YouTube, and Pinterest. Second-quarter digital comps increased 18 percent. Digital channels now account for roughly 60 percent of total sales, and rewards members generate about 25 percent. Noodles plans to increase the number of Boost Weeks it runs in 2026 after leaning into the loyalty events during the second half of last year. The targeted promotions bring new and lapsed customers into the rewards program and encourage repeat visits without depending on broad discounting. Given the stronger performance, Noodles raised its full-year outlook. It now expects $485 million to $500 million in revenue, same-store sales growth of 8 to 11 percent, restaurant contribution margin of 16 to 17 percent, and adjusted EBITDA between $34 million and $38 million. The company also expects one new franchised restaurant to open. Noodles finished Q2 with 396 restaurants systemwide—318 corporate stores and 78 franchised units. The post Noodles & Company Declares it’s ‘Back’ After Historic Sales Quarter appeared first on QSR Magazine.

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Noodles & Company raised its guidance for the year after reporting one of its strongest quarters since becoming a public company in 2013. The Broomfield, Colorado-based chain said same-store sales grew 10.3% during the second quarter — the seventh consecutive quarter of comparable sales growth — including an 11.4% increase at company restaurants and a 5.5% increase at franchised units.  Traffic at company units was up 7.6%, and the average check increased 3.8%, including a 2.1% increase in menu prices during the quarter. Average unit volumes at company-owned units increased nearly 16% to $1.57 million, the company said. Noodles ended the quarter with 318 company and 78 franchised locations. Restaurant margins grew by 440 basis points to 17.2%, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased nearly 80%. The improved financial results allowed the chain to pay down debt. Revenues increased 0.5% to $127 million. The fast-casual chain, however, ended the quarter with a net loss of $3.9 million, down from a loss of $17.5 million the prior year, in part because of impairment charges from the closure of four restaurants during the quarter, including two company-owned and two franchised units. Noodles & Company expects to close between 30 to 35 company owned restaurants and five franchised units in 2026 as part of an ongoing portfolio review. The chain has shuttered around 60 units since the beginning of 2025, and the removal of underperforming locations has boosted average unit volumes at nearby units. CEO Joe Christina, however, credits the brand’s ongoing turnaround efforts with the vastly improved results. “The operating model we have built is working well,” said Christina in a call with analysts on Friday. “These results showcase that progress is happening faster than even we anticipated, and they reinforce our confidence in the long-term sustainability of the improvements we are making in the business.” Christina said Noodles’ Asian menu offerings during the second quarter performed well, including the Indonesian Peanut Saute and the Chili Garlic Ramen. The limited-time offers grew in the category mix by 42% during the promotional period, but core entrees also remained strong. About 65% of guests who came for the promotion were new, Christina said. More ramen dishes are coming in the fourth quarter. For the year, Noodles now expects total revenue between $485 million to $500 million, with same-store sales growth between 8% to 11%. That’s up from the projection after the first quarter of revenue growth between $483 million and $498 million, and comparable sales of 7% to 10%. Margins are now expected to range between 16% to 17% for the year. The company is continuing to consider a review of strategic alternatives, launched last year, including a possible sale, refranchising, or refinancing of debt that is scheduled to mature in July 2027. The positive results injected momentum into Noodles’ stock price, which was up nearly 29% in midday trading at $15.90 per share, close to its 52-week high of $16.65. It’s a vast improvement, after Noodles has faced multiple warnings for possible delisting after the stock price dipped below $1 over the past year.

Noodles & Company (NASDAQ:NDLS) shares climbed 5.02% in premarket trading on Friday after the restaurant chain delivered second-quarter results that comfortably exceeded Wall Street expectations, driven by strong comparable sales growth, improving margins and a stronger full-year outlook. The company also reported a sharp improvement in profitability as customer demand continued to strengthen across both company-owned and franchised restaurants. Noodles & Company reported adjusted earnings of $0.18 per share for the second quarter, significantly outperforming analysts’ expectations for a loss of $0.08 per share. Revenue increased 0.5% year-on-year to $127 million, exceeding the consensus forecast of $119.7 million and improving from $126.4 million in the same quarter last year. System-wide comparable restaurant sales rose 10.3%, led by an 11.4% increase at company-owned restaurants, while franchise locations recorded comparable sales growth of 5.5%. The company significantly reduced its quarterly losses while expanding restaurant-level profitability. Net loss narrowed to $4 million, or $0.67 per diluted share, from $17.6 million, or $3.04 per diluted share, a year earlier. Restaurant contribution margin improved to 17.2%, compared with 12.8% in the prior-year period, while adjusted EBITDA increased 79% to $10.8 million from $6 million. “We are extremely pleased with our second quarter results with system-wide comparable restaurant sales increasing over 10%, an equally impressive 440 basis point year over year improvement in restaurant margin to 17.2%, and a near 80% increase in Adjusted EBITDA,” said Joe Christina, President and Chief Executive Officer. Following the stronger quarterly performance, Noodles & Company raised its revenue guidance for fiscal 2026. The company now expects annual revenue of between $485 million and $500 million, with the midpoint of $492.5 million exceeding analysts’ consensus estimate of $483.3 million. Management also increased its adjusted EBITDA forecast to a range of $34 million to $38 million and reaffirmed expectations for restaurant-level contribution margins of between 16% and 17%. Alongside its improved financial outlook, Noodles & Company said it plans to close between 30 and 35 company-owned restaurants during fiscal 2026 as part of its ongoing efforts to optimise its restaurant portfolio and improve overall operating performance. The combination of stronger sales, expanding margins and higher earnings guidance helped boost investor confidence following the earnings release. Noodles & Company stock price

Interested in Noodles & Company? Here are five stocks we like better. Noodles & Company posted stronger second-quarter results, with revenue of $127 million, comparable restaurant sales up 10.3%, and adjusted EBITDA jumping 79% to $10.8 million. The net loss also narrowed sharply versus a year earlier. Management raised full-year guidance for revenue, comparable sales, restaurant contribution margin and adjusted EBITDA, signaling confidence in continued momentum. The company also expects to be free-cash-flow positive and reduce debt by about $10 million in 2026. Menu innovation, marketing and closures are driving performance, as Asian-inspired promotions and the “Made Right Now” campaign helped lift traffic and digital sales. Noodles also said closures of weaker stores are transferring sales to nearby locations, boosting same-store sales at stronger restaurants. Noodles & Co Stock is a Tasty Turnaround Play Noodles & Company (NASDAQ:NDLS) reported second-quarter 2026 revenue of $127 million, up $600,000 from a year earlier, as double-digit comparable restaurant sales growth largely offset the impact of restaurant closures. The company also raised its full-year outlook for revenue, restaurant contribution margin and adjusted EBITDA. Chief Executive Officer Joe Christina said the quarter represented one of the company’s strongest performances since it became publicly traded, citing expanding restaurant-level margins, sales growth and improved operating execution. “Our operating model is working,” Christina said, pointing to restaurant operations, menu innovation, marketing efforts and portfolio optimization. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Systemwide comparable restaurant sales rose 10.3% during the second quarter. Comparable sales at company-owned restaurants increased 11.4%, while franchise restaurant comparable sales increased 5.5%. At company-owned locations, comparable traffic increased 7.6% and average check rose 3.8%, including 2.1% of effective price. Average unit volumes increased 15.9% to $1.57 million. → GE Vernova Just Sent a Mixed AI Signal to Investors Restaurant contribution margin increased 440 basis points from the prior-year period to 17.2%, compared with 12.8% in the second quarter of 2025. Hynes said the gain reflected higher sales, pricing, favorable menu mix, lower food waste and labor efficiencies. Cost of sales declined 160 basis points to 24.9% of sales, despite 0.7% overall cost-of-sales inflation. Labor costs declined 230 basis points to 29.4% of sales, with hourly wage inflation of 1.6%. Occupancy costs fell to $10.2 million from $11.4 million, reflecting a lower company-owned restaurant count. Other restaurant operating costs increased 60 basis points to 20.3% of sales, primarily because of higher third-party delivery fees associated with increased delivery sales. Second-quarter net loss narrowed to $4 million, or $0.67 per diluted share, from a loss of $17.6 million, or $3.04 per diluted share, a year earlier. The 2026 quarter included a $4.8 million non-cash impairment charge primarily related to planned restaurant closures. → D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? Adjusted EBITDA increased 79% to $10.8 million from $6 million in the prior-year quarter. Through the first half, the company said adjusted EBITDA more than doubled from the same period of 2025. Noodles & Company closed two company-owned restaurants and two franchise restaurants during the quarter. The company’s portfolio optimization strategy focuses on closing restaurants that are generally near stronger-performing locations. Chief Financial Officer Mike Hynes said sales transfers from recently closed restaurants benefited second-quarter comparable sales by an estimated 250 to 300 basis points. The company has seen higher-than-expected sales transfer to nearby restaurants, which it attributed in part to its off-premise sales mix. Christina said the company has averaged sales transfers of roughly one-third from closed restaurants to nearby Noodles locations. He added that the majority of sales and traffic growth was generated beyond the effect of those transfers. The company expects to close 30 to 35 company-owned restaurants and five franchise restaurants during fiscal 2026. It expects one new franchise restaurant opening for the year. Management highlighted menu innovation centered on Asian-inspired offerings during the quarter. The company brought back Indonesian Peanut Saute and Chili Garlic Ramen, and said Asian category mix increased 42% during the promotional period. The percentage of guests ordering an Asian entrée rose to 17.8% during the promotion from 12.5% before it. According to Christina, about 65% of guests participating in the promotion were new to the brand, while 35% were existing customers trying an Asian entrée for the first time. The company plans to launch multiple ramen offerings in the fourth quarter, though management said it had not determined whether those products would be limited-time offers or permanent menu additions. Noodles & Company also introduced Chicken Artichoke & Asparagus Rigatoni in May, supported by a partnership with Chrissy Teigen’s Cravings brand. Management said it plans to introduce another baked limited-time dish on Aug. 5. The company’s “Made Right Now” marketing campaign, emphasizing meals prepared to order, was its strongest-performing creative campaign of the quarter across paid media, Christina said. He said the campaign generated the company’s highest video completion rates and more attributed digital and restaurant purchases than other creative across Meta and TikTok. Digital-channel comparable sales increased 18% in the quarter. Digital sales represented about 60% of total sales, while the rewards program represented approximately 25% of sales, according to Christina. The company plans to continue “Boost Weeks,” targeted rewards events designed to attract loyalty members as well as new and lapsed customers, during the second half and beyond. Management said total media impressions nearly doubled year over year while marketing spending increased approximately 6%. For fiscal 2026, Noodles & Company raised its outlook and now expects: Total revenue of $485 million to $500 million. Comparable restaurant sales growth of 8% to 11%. Restaurant contribution margin of 16% to 17%. Adjusted EBITDA of $34 million to $38 million. General and administrative expense of $51 million to $54 million, including $2.5 million to $3 million in stock-based compensation. Capital expenditures of $9 million to $10 million. The company ended the second quarter with $1.3 million of available cash and $105.4 million in debt, down $1.4 million from the end of the first quarter. It expects to be free-cash-flow positive and reduce debt by approximately $10 million during 2026, including a $4.8 million reduction through the second quarter. Based on its adjusted EBITDA outlook and an expected year-end debt balance of about $100 million, the company expects debt to be at or below three times 2026 adjusted EBITDA. Hynes also said the company continues to review options related to the third-quarter 2027 maturity of its credit facility as part of its ongoing review of strategic alternatives. Noodles & Company is an American fast-casual restaurant chain that specializes in a variety of noodle and pasta dishes inspired by global cuisines. Its menu features signature entrees such as the Wisconsin Mac & Cheese and Japanese Pan Noodles, alongside soups, salads, shareable sides and seasonal offerings. The brand emphasizes fresh ingredients, customizable meals and a quick-service format designed to accommodate dine-in, takeout and digital ordering channels. The company was founded in 1995 by Aaron Kennedy in Boulder, Colorado, with the aim of introducing a diverse noodle-centric menu to the American market. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Noodles & Company Q2 Earnings Call Highlights" was originally published by MarketBeat. 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Second Quarter 2026 Comparable Restaurant Sales Increased 10.3% System-Wide BROOMFIELD, Colo., July 24, 2026 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today announced financial results for its second quarter ended June 30, 2026. Key highlights for the second quarter of 2026 versus the second quarter of 2025 include: Total revenue increased 0.5% to $127.0 million from $126.4 million. Comparable restaurant sales increased 10.3% system-wide, comprised of an 11.4% increase at company-owned restaurants and a 5.5% increase at franchise restaurants. Net loss was $4.0 million, or $0.67 loss per diluted share, compared to net loss of $17.6 million, or $3.04 loss per diluted share, in the second quarter of 2025. Operating margin was (1.2)% compared to (11.7)% in the second quarter of 2025. Restaurant contribution margin(1) was 17.2% compared to 12.8% in the second quarter of 2025. Adjusted EBITDA(1) increased 79% to $10.8 million compared to $6.0 million in the second quarter of 2025. _____________________ Joe Christina, President and Chief Executive Officer of Noodles & Company, remarked, “We are extremely pleased with our second quarter results with system-wide comparable restaurant sales increasing over 10%, an equally impressive 440 basis point year over year improvement in restaurant margin to 17.2%, and a near 80% increase in Adjusted EBITDA, which has more than doubled year to date compared to the same period last year. Significantly increased comparable restaurant sales, and the commensurate improvement in margins and Adjusted EBITDA, have also strengthened our financial flexibility as we’ve been able to generate positive free cash flow and reduce our debt balance. Given our results to date and our outlook for the second half of the year, we have raised our fiscal 2026 guidance for revenue, margins and Adjusted EBITDA. When combined with our expectation to further pay down debt with free cash flow, we now expect our year end debt balance to be at or below three times 2026 Adjusted EBITDA.” Christina continued, “Our second quarter sales continued a trend of seven consecutive fiscal quarters of positive comparable restaurant sales growth as well as strong traffic growth, which have both far exceeded the fast casual Black Box index for the last twelve months. The strong sales performance has continued into the third quarter with quarter to date company-owned comparable restaurant sales up approximately 10%. These results reinforce that the momentum at Noodles & Company is sustainable and our strategies are working well. The combination of better execution by our team members, improved menu offerings, more effective marketing, and the success of our portfolio optimization program are all working together to deliver impressive financial results. I'm incredibly proud of our teams and grateful for everything they've done to get us to this point. Given our plans for further menu innovation and continuing our focus on additional improvement in all areas, we are very excited for what lies ahead for Noodles & Company.” Liquidity Update As of June 30, 2026, the Company had available cash and cash equivalents of $1.3 million and outstanding debt of $105.4 million. The amount available for future borrowings under its revolving credit facility was $16.6 million as of June 30, 2026. Business Outlook Based upon management’s assessment of recent trends, the Company is raising its revenue, restaurant level contribution margin and Adjusted EBITDA guidance for fiscal year 2026.  The following is expected for the full year 2026: Total revenue of $485 million to $500 million, including comparable restaurant sales growth of 8.0% to 11.0%; Restaurant level contribution margins of 16% to 17.0%; General and administrative expenses of $51 million to $54 million, inclusive of stock-based compensation expense of  $2.5 million to $3.0 million; Depreciation and amortization of $24 million to $25 million; Net interest expense of $10 million to $11 million; Adjusted EBITDA of $34 million to $38 million; One new franchise restaurant opening; Restaurant closures: 30 to 35 company-owned restaurants and five franchised restaurants; and Capital expenditures of $9 million to $10 million. Strategic Review On September 3, 2025, the Company announced that its Board of Directors had initiated a review of strategic alternatives in order to explore ways to maximize stockholder value. The review includes a range of potential strategic alternatives, including a refinancing of existing indebtedness that matures on July 27, 2027, refranchising or sale of all or part of the business, and/or other strategic or financial transactions. Such review remains in process. Key Definitions Average Unit Volumes — represent the average annualized sales of all company-owned restaurants for a given time period. AUVs are calculated by dividing restaurant revenue by the number of operating days within each time period and multiplying by the number of operating days we have in a typical year. This measurement allows management to assess changes in consumer traffic and per person spending patterns at our restaurants. In addition to the factors that impact comparable restaurant sales, AUVs can be further impacted by effective real estate site selection and maturity and trends within new markets. Comparable Restaurant Sales — represents year-over-year sales comparisons for the comparable restaurant base open for at least 18 full periods. This measure highlights performance of existing restaurants, as the impact of new restaurant openings is excluded. Changes in comparable restaurant sales are generated by changes in traffic, which we calculate as the number of entrées sold and changes in per-person spend, calculated as sales divided by traffic. Restaurant Contribution and Restaurant Contribution Margin — restaurant contribution represents restaurant revenue less restaurant operating costs, which are costs of sales, labor, occupancy and other restaurant operating items. Restaurant contribution margin represents restaurant contribution as a percentage of restaurant revenue. Restaurant contribution and restaurant contribution margin are presented because they are widely-used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency and performance. Management also uses restaurant contribution and restaurant contribution margin as metrics to evaluate the profitability of incremental sales at our restaurants, restaurant performance across periods, and restaurant financial performance compared with competitors. See “Non-GAAP Financial Measures” below. EBITDA and Adjusted EBITDA — EBITDA represents net income (loss) before net interest expense, provision (benefit) for income taxes and depreciation and amortization. Adjusted EBITDA represents net income (loss) before net interest expense, provision (benefit) for income taxes, depreciation and amortization, restaurant impairments, loss on asset disposals, net lease exit costs (benefits), severance, executive transition costs and corporate transaction costs and stock-based compensation. EBITDA and Adjusted EBITDA are presented because: (i) management believes they are useful measures for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and restaurant impairments, asset disposals and closure costs, and (ii) management uses them internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare performance to that of competitors. See “Non-GAAP Financial Measures” below. Adjusted Net Income (Loss) — represents net income (loss) before restaurant impairments, net lease exit costs (benefits), loss on disposal of assets, severance, executive transition costs and corporate transaction costs and the tax effects of such adjustments. Adjusted net income (loss) is presented because management believes it helps convey supplemental information to investors regarding the Company’s performance, excluding the impact of special items that affect the comparability of results in past quarters and expected results in future quarters. See “Non-GAAP Financial Measures” below. Conference Call Noodles & Company will host a conference call to discuss its second quarter financial results on Friday, July 24, 2026 at 8:30 AM Eastern Time. The conference call can be accessed over the phone by dialing 201-389-0920. A replay will be available after the call and can be accessed by dialing 412-317-6671; the passcode is 13761074. The replay will be available until Friday, August 7, 2026. The conference call will also be webcast live from the Company’s corporate website at investor.noodles.com, under the “Events & Presentations” page. An archive of the webcast will be available at the same location on the corporate website shortly after the call has concluded. Non-GAAP Financial Measures To supplement its condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company uses the following non-GAAP financial measures: EBITDA, adjusted EBITDA, adjusted net income (loss), adjusted earnings (loss) per share, restaurant contribution and restaurant contribution margin (collectively, the “non-GAAP financial measures”). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or to be superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. However, the Company recognizes that non-GAAP financial measures have limitations as analytical financial measures. The Company compensates for these limitations by relying primarily on its GAAP results and using non-GAAP metrics only supplementally. There are numerous of these limitations, including that: adjusted EBITDA does not reflect the Company’s capital expenditures or future requirements for capital expenditures; adjusted EBITDA does not reflect interest expense or the cash requirements necessary to service interest or principal payments, associated with our indebtedness; adjusted EBITDA does not reflect depreciation and amortization, which are non-cash charges, although the assets being depreciated and amortized will likely have to be replaced in the future, and do not reflect cash requirements for such replacements; adjusted EBITDA does not reflect the cost of stock-based compensation; adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; adjusted net income (loss) does not reflect cash expenditures, or future requirements, for lease termination payments and certain other expenses associated with reduced new restaurant development; and restaurant contribution and restaurant contribution margin are not reflective of the underlying performance of our business because corporate-level expenses are excluded from these measures. When analyzing the Company’s operating performance, investors should not consider non-GAAP financial metrics in isolation or as substitutes for net income (loss) or cash flow from operations, or other statement of operations or cash flow statement data prepared in accordance with GAAP. The Company believes that a quantitative reconciliation of the Company’s non-GAAP financial measures guidance to the most comparable financial measures calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to provide guidance for various reconciling items that are outside of the Company’s control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. A reconciliation of certain non-GAAP financial measures would also require the Company to predict the timing and likelihood of outcomes that determine future impairments and the tax benefit thereof. None of these measures, nor their probable significance, can be reliably quantified. These non-GAAP financial measures have limitations as analytical financial measures, as discussed below in the section entitled “Non-GAAP Financial Measures.”  In addition, the guidance with respect to non-GAAP financial measures is a forward-looking statement, which by its nature involves risks and uncertainties that could cause actual results to differ materially from the Company’s forward-looking statement, as discussed below in the section entitled “Forward-Looking Statements.” The non-GAAP financial measures used by the Company in this press release may be different from the measures used by other companies. For more information on the non-GAAP financial measures, please see the “Reconciliation of Non-GAAP Measurements to GAAP Results” tables in this press release. These accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. About Noodles & Company Noodles & Company has known noodles since 1995. For 30 years, the brand has brought people together over craveable classics and globally inspired flavors, from indulgent Creamy Mac & Cheese to bold Japanese Pan Noodles. With approximately 400 restaurants and a team of passionate noodle lovers, Noodles is built on flavor, comfort, and a people-first culture. To learn more and to find the location nearest you, visit www.noodles.com. Forward-Looking Statements In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties such as the number of restaurants we intend to open, projected capital expenditures and estimates of our effective tax rates. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms and similar expressions intended to identify forward-looking statements. These statements reflect our current views with respect to future events and are based on currently available operating, financial and competitive information. Examples of forward-looking statements include all matters that are not historical facts, such as statements regarding expectations with respect to our business strategy and plans to deliver financial results and continued growth. Our actual results may differ materially from those anticipated in these forward-looking statements due to reasons including, but not limited to, uncertainties as to the availability, suitability, structure, terms, and timing of any strategic transaction resulting from the strategic review and whether any such transaction will be completed, the impact of any such strategic transaction on Noodles & Company, and whether the strategic benefits of any such strategic transaction can be achieved; current performance trends and our expectations for future performance; our ability to repay, refinance or obtain new financing on acceptable terms, if at all, and comply with our covenants under the A&R Credit Agreement, which matures on July 27, 2027; our ability to sustain or achieve overall growth, including, digital sales growth; our ability to open new restaurants, if any, and cause those newly opened restaurants to be successful; our ability to effectively optimize our restaurant portfolio including closures; our ability to achieve and maintain increases in comparable restaurant sales and to successfully execute our business strategy, including new restaurant initiatives and operational strategies to improve the performance of our restaurant portfolio and guest satisfaction; the success of our brand strategy and marketing efforts, including our ability to successfully introduce new menu items, including limited time offerings and the success of our promotions; our pricing strategies; economic conditions, including those resulting from inflation, increased interest rates, recessionary economic cycles, and changes in trade policies, including tariffs or other trade restrictions or the threat of such actions; price and availability of commodities and other supply chain challenges; our ability to adequately staff our restaurants; changes in labor costs; our ability to maintain compliance with requirements for continued listing on the Nasdaq Global Select Market; other conditions beyond our control such as domestic or global conflicts, wars, terrorist activity, weather, natural disasters, disease outbreaks, epidemics or pandemics impacting our customers or food supplies; and consumer reaction to industry related public health issues and health pandemics, including perceptions of food safety. For additional information on these and other factors that could affect the Company’s forward-looking statements, see the Company’s risk factors, as they may be amended from time to time, set forth in its filings with the SEC, included in our most recently filed Annual Report on Form 10-K, and, from time to time, in our subsequently filed Quarterly Reports on Form 10-Q. The Company disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release, except as may be required by applicable law or regulation. _____________________(1) Shares and per share amounts have been retroactively adjusted to reflect the decreased number of shares resulting from a 1-for-8 reverse stock split that became effective on February 18, 2026. ______________________________ (1)           Restaurant impairments in all periods presented above include amounts related to restaurants previously impaired. EBITDA and adjusted EBITDA are supplemental measures of operating performance that do not represent and should not be considered as alternatives to net income (loss) or cash flow from operations, as determined by GAAP, and our calculation thereof may not be comparable to that reported by other companies. These measures are presented because we believe that investors’ understanding of our performance is enhanced by including these non-GAAP financial measures as a reasonable basis for evaluating our ongoing results of operations. EBITDA is calculated as net income (loss) before net interest expense, provision (benefit) for income taxes and depreciation and amortization. Adjusted EBITDA further adjusts EBITDA to reflect the eliminations shown in the table above. EBITDA and adjusted EBITDA are presented because: (i) we believe they are useful measures for investors to assess the operating performance of our business without the effect of non-cash charges such as depreciation and amortization expenses and restaurant impairments, loss on disposal of assets, net lease exit costs (benefits), severance, executive transition costs and corporate transaction costs and stock-based compensation expense, and (ii) we use adjusted EBITDA internally as a benchmark for certain of our cash incentive plans and to evaluate our operating performance or compare our performance to that of our competitors. The use of adjusted EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. Companies within our industry exhibit significant variations with respect to capital structures and cost of capital (which affect interest expense and income tax rates) and differences in book depreciation of property, plant and equipment (which affect relative depreciation expense), including significant differences in the depreciable lives of similar assets among various companies. Our management believes that adjusted EBITDA facilitates company-to-company comparisons within our industry by eliminating some of these foregoing variations. Adjusted EBITDA as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted EBITDA should not be construed as an inference that our future results will be unaffected by excluded or unusual items. _____________________________ Adjusted net income (loss) is a supplemental measure of financial performance that is not required by or presented in accordance with GAAP. We define adjusted net income (loss) as net income (loss) before restaurant impairments, net lease exit costs (benefits), and severance, executive transition costs and corporate transaction costs, and the tax effects of such adjustments. Adjusted net income (loss) is presented because management believes it helps convey supplemental information to investors regarding our performance, excluding the impact of special items that affect the comparability of results in past quarters to expected results in future quarters. Adjusted net income (loss) as presented may not be comparable to other similarly-titled measures of other companies, and our presentation of adjusted net income (loss) should not be construed as an inference that our future results will be unaffected by excluded or unusual items. Our management uses this non-GAAP financial measure to analyze changes in our underlying business from quarter to quarter based on comparable financial results. _____________________________ Restaurant contribution represents restaurant revenue less restaurant operating costs, which are the cost of sales, labor, occupancy and other operating items. Restaurant contribution margin represents restaurant contribution as a percentage of restaurant revenue. Restaurant contribution and restaurant contribution margin are non-GAAP measures that are neither required by, nor presented in accordance with GAAP, and the calculations thereof may not be comparable to similar measures reported by other companies. These measures are supplemental measures of the operating performance of our restaurants and are not reflective of the underlying performance of our business because corporate-level expenses are excluded from these measures. Restaurant contribution and restaurant contribution margin have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of our results as reported under GAAP. Management does not consider these measures in isolation or as an alternative to financial measures determined in accordance with GAAP. However, management believes that restaurant contribution and restaurant contribution margin are important tools for investors and other interested parties because they are widely-used metrics within the restaurant industry to evaluate restaurant-level productivity, efficiency and performance. Management also uses these measures as metrics to evaluate the profitability of incremental sales at our restaurants, restaurant performance across periods, and restaurant financial performance compared with competitors. Contacts:Investor [email protected] MediaDanielle [email protected]

This article first appeared on GuruFocus. Total Revenue: $127 million, a $600,000 increase compared to last year. Comparable Restaurant Sales: Increased 10.3% system-wide; 11.4% at company-owned restaurants, 5.5% at franchise restaurants. Restaurant Contribution Margin: Increased 440 basis points to 17.2% from 12.8% last year. Adjusted EBITDA: Increased 79% to $10.8 million from $6 million last year. Net Loss: $4 million, or $0.67 per diluted share, compared to a net loss of $17.6 million, or $3.04 per diluted share last year. Company Average Unit Volumes: Increased 15.9% to $1.57 million. Cost of Sales: 24.9% of sales, a 160 basis point decrease from last year. Labor Costs: 29.4% of sales, down 230 basis points from the prior year. Cash and Debt: $1.3 million of available cash; debt balance of $105.4 million, reduced by $1.4 million from the previous quarter. Restaurant Closures: Closed two company-owned and two franchise restaurants in the second quarter. Warning! GuruFocus has detected 7 Warning Signs with NDLS. Is NDLS fairly valued? Test your thesis with our free DCF calculator. Release Date: July 24, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Noodles & Co (NASDAQ:NDLS) achieved one of its strongest performances since becoming a publicly traded company, with restaurant level margins expanding by over 400 basis points year over year. Adjusted EBITDA increased approximately 80% in the second quarter, and more than doubled in the first half of the year compared to the same period last year. Comparable restaurant sales have been positive for the last 18 months, significantly exceeding the fast casual Black Box index. The company raised its fiscal 2026 guidance for revenue, margins, and adjusted EBITDA, expecting year-end debt balance to be at or below three times 2026 adjusted EBITDA. Noodles & Co (NASDAQ:NDLS) has successfully implemented a portfolio optimization plan, resulting in improved profitability and a significant transfer of sales from closed restaurants to nearby locations. Net loss for the second quarter was $4 million, or a loss of $0.67 per diluted share, despite improvements in other financial metrics. The company closed two company-owned restaurants and two franchise restaurants in the second quarter, indicating ongoing challenges in certain locations. Other restaurant operating costs increased by 60 basis points from the prior year, driven by higher third-party delivery fees. General and administrative expenses increased to $13.9 million, primarily due to an increase in incentive-based compensation. The company is still dealing with variability in franchise group performance, which can create disconnects with company-owned restaurant performance. Q: Joe, regarding innovation, how much can the Asian-inspired dishes offering be broadened, and is there a point where it becomes a permanent menu item instead of LTO driven? A: Joe Christina, President and CEO: We have a consistent testing process and an 18-month calendar for items that could be relevant, whether as LTOs or permanent items. We are finishing up testing multiple ramen dishes for a Q4 launch, which will be exciting. We haven't decided if they will be LTOs or permanent yet. Q: Can you remind us about the baked launch in early August and the ramen launch in Q4, and how do these compare to last year's innovation in the second half? A: Joe Christina, President and CEO: We are lapping against last year's Chili Garlic Ramen launch. We are confident in our strong innovation pipeline, and we believe ramen will become a key part of our offerings, enhancing our brand's appeal. Q: Regarding marketing improvements and Boost Weeks, can you provide details on the loyalty base and how many Boost Weeks are planned compared to previous years? A: Joe Christina, President and CEO: Our rewards program accounts for about 25% of sales, with digital sales at 60%. We leaned into Boost Weeks in the latter half of last year and plan to have more in 2026 due to their success and engagement with rewards members. Q: There seems to be a significant spread between company and franchisee same-store sales. What drove the strength at the company level, and can you explain the 600 basis point delta? A: Joe Christina, President and CEO: We observe variability in franchise performance, which depends on the market. The franchise group is relatively small, so variability can create a disconnect. However, we see overall health and strength in the system, with some franchise groups outperforming the company average. Q: Can you elaborate on the financial results and guidance for the rest of 2026? A: Mike Hynes, CFO: We raised our full-year 2026 guidance, expecting total revenue of $485 million to $500 million, with comp restaurant sales growth of 8% to 11%. We anticipate a restaurant contribution margin between 16% and 17% and adjusted EBITDA between $34 million and $38 million. We also plan to reduce our debt balance by approximately $10 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Wednesday, March 25, 2026 at 4:30 p.m. ET Chief Executive Officer — Joseph Christina Chief Financial Officer — Michael Hynes Need a quote from a Motley Fool analyst? Email [email protected] Joseph Christina: Thanks, Mike, and good afternoon. As we look at our performance in the first quarter and into the second, the story is clear. We are delivering consistent and sustainable favorable results across Noodles & Company, demonstrated by system-wide comp sales growth of over 9% and adjusted EBITDA more than tripling year-over-year in the first quarter. More importantly, this momentum continued into the second quarter with April system-wide comp sales growth of over 9%, including over 10% for our company-operated restaurants. To date, we have delivered positive same-store sales for the last 16 consecutive months. In conjunction with the increase in comparable sales, our restaurant contribution margins increased by a significant 460 basis points in the first quarter, with the combination of the strong sales and margin increases reflected in the over tripling of our adjusted EBITDA results. What gives me confidence in the sustainability of our results is that our progress is driven not by a single initiative or unlock. It is a result of a focused, disciplined approach to executing the fundamentals of our business and doing the small things right every day, with those small improvements adding up to meaningful wins. Moreover, we are seeing those winning behaviors spread across the organization, leading to stronger execution and a better overall guest experience. What's important to understand is that this progress is not accidental. It is a result of how our teams show up and operate every day. We are seeing that come through clearly in 3 areas. First, we are running more consistent restaurant operations. Second, our marketing is more disciplined and more connected. And third, our culinary strategy is driving demand through relevant craveable food. Let me start with our restaurants. Put simply, we are operating better restaurants today than we were a year ago. Across the system, we are executing at a higher level in the moments that matter most to our guests. We are seeing meaningful improvement in service, particularly during our dinner daypart, where consistency and hospitality have the greatest impact. Our overall guest satisfaction scores increased by 10% in the last 6 months, with significant improvement achieved in all of our major sales channels: in-restaurant, native digital, and third-party delivery. That comes from more focused, more aligned teams who understand what matters most and hold themselves accountable to it. We are recognizing strong performance and reinforcing it, which raises the standards across the system. Guests are noticing the difference, and that is showing up in stronger in-restaurant sales and more consistent traffic patterns. At the same time, as execution in our restaurants has improved, our marketing has become more disciplined, more connected, and more effective. We're not relying on a single campaign or promotion. We are operating with a consistent ongoing dialogue with our guests anchored in what we do best, delivering craveable globally inspired noodle dishes. That work is showing up in the business. We're seeing it in both sales and transactions, supported by stronger engagement across our paid, owned and earned channels. Importantly, a meaningful portion of that growth is coming from new guests entering the brand. In fact, new guest active purchases increased 36% year-over-year, and loyalty sign-ups grew 33% in the quarter, clear indicators that our brand is reaching new audiences. We also become intentional in how we invest. In paid media, we are actively managing performance in real time across channels, allowing us to allocate dollars more efficiently and maximize return. We are not separating traffic from brand. The same work that brings guests into our restaurants is also strengthening how they think about noodles. In the first quarter, we introduced what we call a boost week offer, a focused, time-bound activation designed to drive immediate profitable traffic during key periods. During this window, reward members can enjoy 2 of our culinary classics for $12. The results were strong as we added new loyalty members, reactivated last guests, and drove a meaningful increase in traffic to our website. Based on that performance, we plan to build this into a repeatable program and execute it on a quarterly basis. We also launched our fresh campaign, highlighting ingredient quality and reinforcing the care that goes into every dish, helping to elevate how our guests perceive our food. On the culinary side, we are executing a focused strategy that balances fan-favorite returns, bold global flavors, and culturally relevant partnerships to drive both frequency and new guest engagement. This progress began last year with the most significant menu transformation in our company's history as we introduced a range of new and enhanced dishes that strengthen the core of our offerings. We followed that with our Delicious Duos platform, which reinforced our value proposition in a disciplined way as well as provided further reinforcement of the new and enhanced menu items. Later in the year, we introduced Chili Garlic Ramen, one of our most successful limited-time offers, which brought new guests to the brand and further reinforced noodles as a credible, differentiated fast casual destination for globally inspired noodle dishes. In the first quarter, Steak Stroganoff returned as a highly successful limited-time offer. We brought it back in response to strong guest demand, and the results reinforce both the strength of our loyal guest base and our ability to attract new guests. We also expanded how we supported that launch through differentiated marketing initiatives to build broader awareness and reach beyond our core guests. More broadly, fan favorites like Steak Stroganoff played an important role in our strategy. For long-time guests, they create a reason to return. For new guests, they provide an easy entry point into a brand through dishes we know resonate. We continued that approach into March by highlighting our Asian category and bringing back Indonesian Peanut Saute alongside Chili Garlic Ramen. This work reinforced our global flavor profile, showcasing the variety on our menu and helped lift the overall Asian category. During this LTO window, our Asian category mix has increased 40%, a clear signal that this strategy is resonating with guests. As limited-time offers remain a key part of our menu strategy, I'm excited to share our newest LTO, Chicken Artichoke and Asparagus Rigatoni, which is available today nationwide. This dish is a bright spring-forward pasta that brings together fresh seasonal ingredients with the comforting flavors our guests expect from noodles. In tandem with this LTO, we are partnering with CRAVINGS by Chrissy Teigen to offer guests a craveable bundle, which includes our new Chicken Artichoke and Asparagus Rigatoni alongside a CRAVINGS-inspired, crispy and nostalgic sweet and salty twist on our signature treat. This is another example of how we are delivering craveable food while elevating it through the right partnership. We know noodles and the CRAVINGS brand, which has a significant following among one of our key demographics, certainly knows cravings. Together, we are bringing those strengths to life in a way that allows us to show up in culture authentically while driving awareness, trial, and engagement. Across all these efforts, the true line is clear. We are executing well in our restaurants, supporting them with disciplined marketing and delivering craveable food, creating a better guest experience that is translating into consistent performance and steady growth in both comparable sales and margins. At the same time, we have taken a disciplined look at our portfolio and how our restaurants are performing across markets. In select areas, we had too much density, particularly as our off-premise sales continue to grow, so we made the decision to optimize our footprint. By closing underperforming restaurants in these areas, we have seen a significant transfer of their sales to nearby restaurants, which results in a higher baseline average unit volume for those go-forward restaurants, which also further improves restaurant-level margin and profitability. It also allows us to focus our resources on our strongest restaurants, improving efficiency and driving better overall company profitability. The progress we are seeing is helping across the business and is building on itself. We are seeing a shift in mindset across the organization, and our teams believe they can impact results. They are taking ownership. And as we continue to reinforce strong execution, winning is becoming contagious across our teams. That is what allows this momentum to sustain. As we look ahead, we will stay focused, remain disciplined, and continue executing at a high level every day. With that, I will turn it over to Mike to walk through the financial details. Michael Hynes: Thank you, Joe. In the first quarter, our total revenue was relatively flat compared to last year at $123.8 million, with strong comp sales growth, mostly offset by the closing of underperforming locations. System-wide comp restaurant sales during the first quarter increased 9.1%, including an increase of 9.4% at company-owned restaurants and an increase of 8% at franchise restaurants. Company comp traffic during the first quarter increased 4.8%, and average check increased 4.4%, inclusive of 2% effective pricing during the quarter. Company average unit volumes in the first quarter increased 13.5% to $1.49 million. Our sales growth in the first quarter, which was an acceleration of the sales growth we saw in the back half of 2025, delivered impressive restaurant contribution margin growth. Our restaurant contribution margin in the first quarter increased 460 basis points to 14.9% from 10.3% in the first quarter of 2025. COGS in the first quarter were 25.4% of sales, a 120 basis point decrease from last year, which was driven by lower food waste related to new menu items, menu pricing, and lower discounting, partially offset by higher food costs associated with our new menu offerings and modest inflation. Our food inflation in the first quarter was 0.2%. Labor costs for the first quarter were 30.0% of sales, which was down 250 basis points from the prior year, primarily due to the benefit of sales leverage and labor efficiencies, partially offset by wage inflation. Hourly wage inflation in the first quarter was 1.9%. Occupancy costs in the first quarter decreased to $10.4 million compared to $11.5 million in 2025 due to a reduction in our company-owned restaurant count over the last 12 months. Other restaurant operating costs increased by 10 basis points in the first quarter to 21.2%. The increase in other restaurant operating costs was primarily driven by a combination of higher third-party delivery fees from higher third-party delivery channel sales and higher marketing expenses, which were mostly offset by sales leverage and lower repairs and maintenance costs. G&A in the first quarter was $12.5 million compared to $12.8 million in 2025. Net loss for the first quarter was $3.4 million, or a loss of $0.68 per diluted share, compared to a net loss of $9.1 million or a loss of $1.58 per diluted share last year. The loss in the first quarter of 2026 included a $2.7 million noncash impairment charge primarily related to our decision to close underperforming restaurants. Our adjusted EBITDA in the first quarter more than tripled to $7.7 million compared to $2.4 million in the first quarter of 2025. Our first quarter capital expenditures totaled $2.1 million compared to $2.9 million in 2025. At the end of the first quarter, we had $1.4 million of available cash, and our debt balance was $106.8 million, which was a reduction of $3.4 million from our debt balance at the end of 2025, as we were able to pay down debt in a seasonally low quarter. In the first quarter, we closed 20 company-owned restaurants and 3 franchise restaurants. The 20 company-owned restaurants were closed as part of our restaurant portfolio optimization project, which continues to yield a significant transfer of sales to nearby locations given our high mix of off-premise sales, contributing to improvement in our comp sales and overall profitability. That said, a majority of the comp restaurant sales increase in the first quarter was driven by the improvement in our underlying business fundamentals, with our portfolio optimization providing an added benefit. Overall, we are extremely pleased with our first quarter results, which exceeded our expectations, as our restaurant contribution margin and adjusted EBITDA improvements were driven by our double-digit average unit volume increases, paired with effective cost management. As we reflect on the first quarter results and look forward to the rest of the year, we're raising our full-year 2026 guidance to the following: total revenue of $483 million to $498 million, including comp restaurant sales growth of 7% to 10%. Restaurant contribution margin between 15.5% and 17%, general and administrative expenses of $50 million to $53 million, inclusive of stock-based compensation expense of approximately $2.5 million, depreciation and amortization expense of $24 million to $25 million, and interest expense of $10 million to $11 million. Adjusted EBITDA between $32.5 million and $37.5 million, 1 to 2 new franchise restaurant openings, restaurant closures, 30 to 35 company-owned restaurants, and 5 franchise restaurants. ?And we estimate total 2026 capital expenditures of $9.5 million to $10.5 million. We continue to expect to be free cash flow positive and have the opportunity to reduce our debt balance in 2026 by approximately $10 million, including the $3.4 million reduction in the first quarter. For further information regarding our 2026 expectations, please see the Business Outlook section of our press release. With that, I'd like to turn the call back over to Joseph for final remarks. Joseph Christina: Thanks, Mike. We are very pleased with our first quarter results, reflecting continued strong momentum at Noodles & Company, which continues into the second quarter. We are very encouraged by this momentum and remain focused on executing the fundamentals every day that are delivering a better overall guest experience, as evidenced by sequential improvement in our guest satisfaction scores, sustained traffic growth, increased engagement with our guests, and more consistent in-restaurant performance. Thank you for your time today, and I'll now turn the call back over to the operator. Operator: [Operator Instructions] The first question that we have comes from Todd Brooks of Benchmark Company. Todd Brooks: Congratulations. Mike, you quantified the same-store sales in Q1 as majority driven by fundamental business improvements and the momentum in the business. I think last quarter, you parsed out the sales transfer contribution versus the contribution from the fundamental improvements. Is that something you'll do this quarter as well? Michael Hynes: You mean for the second quarter? Is that the same message for the second quarter? Todd Brooks: Well, no, for same-store sales, I'm just wondering what came from the contribution from closed locations versus just the core business? Michael Hynes: Yes. We talked about 200 to 300 basis points a few weeks ago during our Q4 call, and that's about where we landed, right in the middle of that, about 250 basis points attributable to the closed locations. So, most of the benefit was due to core business improvement, which is really encouraging to see. Todd Brooks: And then it sounds silly because the same-store sales are so strong, but did you guys have any winter weather-related impact that muted results in the first quarter that you would call out? Michael Hynes: Just timing between the periods. But overall, we feel like it washed out and didn't have a big impact for the quarter. Todd Brooks: And then, Joe, you talked about the introduction of a boost week. I was wondering if this is something you're going to tease for customers ahead of time? Or is it something you're going to drop on them? What's the strategy for how this rolls out quarter after quarter? Joseph Christina: Yes. Great question, Todd. That's a strategy for our reward members. So, it's offered to them, and it's also offered to other guests once they sign up for our reward activity. So, it's something that attracts new guests to our app, as well as our existing guests, to give them a great promotion. And with the results we saw, it's something that we're going to continue throughout the year. Todd Brooks: And I assume that you would stagger that with the new LTO rolling out today. It wouldn't be something we would see until later in the quarter than the boost week. Joseph Christina: Correct. It's specific weeks of the year outside of our existing LTOs. Todd Brooks: And you talked about the second quarter LTO. I know last quarter, you had some additional items when you were running the Sartori, you added the Raman back in. Are there any other add-ins to this LTO? Or is it going to be the dish standing on its own through the quarter? Joseph Christina: It's a partnership that we are with Cravings, with Chrissy Teigen, and getting the benefit of all her followers, as well as a new tree to put in the bundle. So, we are standing on our LTO for this quarter, and with other news coming up in the remainder of the year. Todd Brooks: Final one for me, and thanks all. Mike, I think you talked about the check being up 4.4%. Can you break that down between price and mix? Michael Hynes: Yes. We had about 2% price for the quarter, and that's really our expectation for the full year 2026, with the rest coming from mix. And the mixed benefit we've been seeing for a couple of quarters now as we've had the new menu items, which have a little higher price point. And then also the strength of our delivery channel is pushing the check up a bit as well. Operator: Thank you. Ladies and gentlemen, that then concludes today's conference call. Thank you for joining us. You may now disconnect your lines. Before you buy stock in Noodles & Co, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Noodles & Co wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $462,983!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,447!* Now, it’s worth noting Stock Advisor’s total average return is 995% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 2, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Noodles NDLS Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Noodles & Company on Wednesday raised its guidance for the year on better-than-expected results, saying its two-year turnaround effort is paying off. The fast-casual chain said same-store sales in the first quarter were up 9.1% systemwide, including a 9.4% increase at company-owned restaurants and an 8% increase at franchised units. The company said it has delivered positive comparable sales for the last 16 months consecutively. Traffic at company units was up 4.8%, and the average check increased 4.4%, which reflected a 2% menu price increase and the rest from guests choosing higher-priced items. Restaurant-level margins grew by 460 basis points to 14.9%, compared with 10.3% a year ago. The company also narrowed its net loss to $3.4 million in the March 31-ended quarter, compared with a net loss of $9.1 million in the first quarter last year. Revenues remained flat at $123.8 million. Noodles is benefitting from the closure of 33 underperforming company restaurants last year, and another 20 closures in the first quarter this year, along with the shuttering of three franchised units.  The company has said it plans to close another 10 to 15 restaurants in 2026, as it continues to review the portfolio. Another two franchised units are also expected to shutter. The closures have driven sales to nearby locations and boosted off-premise sales, which has ultimately improved unit profitability. CEO Joe Christina, however, said the improved results were less about the restaurant closures and more about improvements in the business, including “doing small things right every day, with those small improvements adding up to meaningful wins.” He credited Noodles’ overhaul of the menu last year, as well as an ongoing strengthening of operational execution and more effective marketing. “Put simply, we are operating better restaurants today than we were a year ago,” Christina said. He also said the chain’s value-positioned Delicious Duos, pairing an entrée and side for $9.95, have also continued to drive traffic, as did the return of the fan-favorite Steak Stroganoff and a Chili Garlic Ramen, which was one of the most successful limited-time offers in brand history. On Wednesday, Noodles launched a collaboration with model/actress/entrepreneur Chrissy Teigen featuring the limited-time dish Chicken Artichoke & Asparagus Rigatoni in a light garlic-herb sauce. It is paired with a dessert called Crispy, a treat with corn flakes, peanut butter and butterscotch chips inspired by Teigen’s Cravings Glorious Golden Cookie Mix. The pair is priced at $16.45. As a result of the stronger-than-expected quarter, the company is projecting same-store sales growth of between 7% to 10% this year, with revenues of $483 million to $498 million. Restaurant-level margins will increase for the year to 15.5% to 17%, the company projected. Meanwhile, Noodles is still considering a review of strategic alternatives to maximize stockholder value, including a refinancing of debt, refranchising or the sale of all or part of the business, along with other options. The review is ongoing, but the status of the effort was not addressed during the earnings call.