Noodles & Company increased its annual guidance after reporting one of its strongest quarters since its 2013 initial public offering. The improvement was driven by double-digit same-store sales growth and higher customer traffic.
The Broomfield-based chain reported same-store sales rose 10.3% in the second quarter, marking the seventh consecutive quarter of growth. Company-owned locations saw an 11.4% increase, while franchised units grew 5.5%. Traffic at company restaurants climbed 7.6%, and the average check increased 3.8%, including a 2.1% rise from menu price adjustments. Average unit volumes at company-owned locations reached $1.57 million, a nearly 16% jump.
Asian dishes fuel growth, ramen expansion planned
CEO Joe Christina said the results reflected the brand’s turnaround efforts. He described the operating model as effective during an analyst call and pointed to strong performance from Asian menu items. The Indonesian Peanut Sauté and Chili Garlic Ramen saw a 42% increase in category mix during promotions. About 65% of guests who tried the limited-time offers were new to the brand, Christina noted.
Additional ramen dishes will launch in the fourth quarter. The chain ended the period with 318 company-owned and 78 franchised locations. It plans to close 30 to 35 company restaurants and five franchised units in 2026 as part of a portfolio review. Since early 2025, Noodles has closed about 60 underperforming locations, which boosted average unit volumes at nearby stores.
Revenue grew 0.5% to $127 million, though the company reported a net loss of $3.9 million, down from a $17.5 million loss the previous year. The decline stemmed partly from impairment charges tied to closing four restaurants during the quarter.
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Restaurant margins expanded by 440 basis points to 17.2%, while adjusted EBITDA nearly doubled, rising nearly 80%. The stronger financials allowed the company to reduce debt. It is now evaluating strategic options, launched last year, including a potential sale, refranchising, or refinancing debt due in July 2027.
The latest results lifted its stock, which rose nearly 29% in midday trading to $15.90 per share—near its 52-week high of $16.65. Earlier this year, the stock had fallen below $1, prompting delisting warnings.
Guidance raised as turnaround gains speed
For the full year, Noodles expects revenue between $485 million and $500 million, up from its prior forecast of $483 million to $498 million. Same-store sales are projected to grow 8% to 11%, compared to the earlier 7% to 10% range. Margins are now expected to land between 16% and 17%.
Christina said the results demonstrate progress is accelerating, reinforcing confidence in the business’s long-term sustainability. The focus on menu innovation, especially with Asian-inspired dishes, appears successful even as the company refines its footprint.
The planned closures indicate selectivity about locations remains a priority. The chain’s ability to draw new customers while maintaining core menu strength suggests a balance between novelty and familiarity. Sustaining this momentum will depend on executing the next phase of its turnaround, including the ramen rollout and any strategic decisions in the coming months.
