Noodles & Company announced its second quarter 2025 financial results on August 13, 2025, reporting a net loss of $11.9 million, or $0.26 per share. This loss included an $11.9 million noncash impairment charge related to underperforming restaurants. Total revenue for the quarter decreased by 0.7% year-over-year to $126.4 million, despite system-wide comparable restaurant sales increasing by 1.5%.
The restaurant contribution margin for Q2 2025 declined to 12.8% from 15.5% in Q2 2024. Adjusted EBITDA for the quarter was $5.8 million, down from $10.0 million in the prior year. As of July 1, 2025, the company had $2.3 million in cash and cash equivalents, with $108.3 million in outstanding debt and $13.7 million available under its revolving credit facility.
The company revised its full-year 2025 guidance, lowering total revenue expectations to between $487 million and $495 million from the previous range of $500 million to $510 million. Critically, Noodles & Company no longer expects to be free cash flow positive in 2025, now targeting this milestone for 2026. Management noted that sales and traffic moderated after the initial new menu rollout due to an 'unexpected decline in guest value perception' and a 'strong value-conscious climate.'
In response to these challenges, the company swiftly introduced the 'delicious Duos' value platform on July 30, 2025, which showed a strong initial response, with comparable restaurant sales improving to an average of +5% in the two weeks prior to the earnings call. The company also plans to close 28 to 32 company-owned restaurants in 2025 and an additional 12 to 17 in 2026 as part of its portfolio optimization strategy.
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