Noodles & Company (NDLS) reported preliminary, unaudited results for its fourth fiscal quarter ended December 30, 2025, showing a 7.3% year‑over‑year increase in comparable sales at company‑owned restaurants, up from a 4% gain in the third quarter. The 7.3% lift reflects stronger customer traffic and higher average ticket sizes driven by a refreshed menu lineup and targeted promotional campaigns that resonated with core diners.
The company maintained a portfolio of 340 company‑owned restaurants and 83 franchise locations at year‑end, after closing 33 company‑owned and nine franchise sites during 2025. Management plans an additional 30 to 35 closures in 2026 to streamline operations and focus capital on high‑performing locations, a strategy that has already begun to improve operating leverage and margin potential.
Revenue for the quarter was $1.12 billion, a 4% year‑over‑year increase, while net loss narrowed to $0.12 billion from $0.18 billion in the prior year. The narrowing loss is largely attributable to disciplined cost control and the elimination of under‑performing sites, which reduced fixed‑cost exposure and improved contribution margins. The company’s contribution margin rose to 13.2% from 12.8% in Q3 2024, indicating a modest but meaningful improvement in operating efficiency.
CEO Joe Christina highlighted that the sales momentum and portfolio refinement give the company confidence as it moves into 2026. He noted that the 7.3% comparable sales growth “builds on a trend of 4% growth in the third quarter, reflecting the strong momentum taking hold at Noodles & Company.” The company’s focus on menu revamps, including new seasonal offerings and a streamlined core menu, has helped drive repeat visits and higher average spend.
Investors responded positively to the preliminary results, citing the accelerated comparable sales growth and the company’s disciplined portfolio optimization as key drivers of confidence. The market reaction underscores the importance of sustained sales momentum and operational efficiency in a competitive fast‑casual landscape.
Noodles & Company’s guidance for the full year remains unchanged, but the company’s emphasis on continued cost discipline and selective expansion signals a cautious yet optimistic outlook for 2026. The company’s strategy to close under‑performing sites while investing in high‑potential locations positions it to improve profitability and long‑term shareholder value.
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