Noodles & Company Announces Third Quarter 2026 Financial Results
Sentiment and the balance of points
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Rhea-AI Summary
Noodles & Company (NDLS) reported third-quarter 2026 revenue of $120.9 million, down year over year despite higher comparable restaurant sales. System-wide comparable sales rose 9.5%, including 10.7% at company-owned restaurants and 4.9% at franchises. Net loss narrowed to $2.1 million, or $0.36 per diluted share, from $9.2 million, or $1.58 per share. Operating margin improved to 0.1% from negative 5.2%. Non-GAAP adjusted EBITDA rose 34.3% to $8.7 million.
The company expects 2026 revenue of $485 million to $495 million and adjusted EBITDA of $35 million to $37 million. At September 29, it had $1.5 million in cash, $101.0 million in debt and $21.2 million available under its revolving credit facility. A November 12 amendment extended the facility’s maturity to November 30, 2027. A review of strategic alternatives remains underway.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointSystem-wide comparable restaurant sales increased 9.5% in the third quarter versus 2025.
- Moderate pointThird-quarter net loss narrowed to $2.1 million, or $0.36 per diluted share, from $9.2 million, or $1.58.
- Moderate pointOperating margin improved to 0.1% from negative 5.2% in the third quarter of 2025.
- Moderate pointNon-GAAP restaurant contribution margin improved to 16.7% from 13.2% in the third quarter of 2025.
- Moderate pointThird-quarter adjusted EBITDA increased 34.3% to $8.7 million from $6.5 million.
- Moderate pointYear-to-date debt reduction exceeded $9.0 million. 11% of market cap
- Moderate pointCredit facility maturity extended to November 30, 2027 under the November 12 amendment.
- Moderate pointRevolving credit facility provided $21.2 million in available borrowing capacity at September 29, 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Company expects 2026 revenue of $485 million to $495 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Company expects 2026 adjusted EBITDA of $35 million to $37 million.
13 minor points
- Minor pointCompany-owned comparable restaurant sales increased 10.7% in the third quarter versus 2025.
- Minor pointFranchise comparable restaurant sales increased 4.9% in the third quarter versus 2025.
- Minor pointThird-quarter cost of sales decreased to $29.347 million from $30.709 million a year earlier.
- Minor pointThird-quarter labor costs decreased to $34.908 million from $37.499 million a year earlier.
- Minor pointThird-quarter occupancy costs decreased to $9.773 million from $11.076 million a year earlier.
- Minor pointThird-quarter depreciation and amortization decreased to $5.672 million from $6.604 million a year earlier.
- Minor pointThird-quarter impairment, closure and asset disposal costs decreased to $2.748 million from $5.681 million.
- Minor pointThird-quarter net interest expense decreased to $2.288 million from $2.827 million a year earlier.
- Minor pointFirst-three-quarter net loss narrowed to $9.514 million from $35.760 million in 2025.
- Minor pointFirst-three-quarter operating loss narrowed to $2.208 million from $27.484 million in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.Company expects 2026 comparable restaurant sales growth of 9.0% to 10.0%.
- Minor point. Forward-looking: it has not happened yet and may not happen.Company expects 2026 restaurant contribution margins of 16.0% to 16.7%.
- Minor point. Forward-looking: it has not happened yet and may not happen.Company expects one new franchise restaurant opening in 2026.
Negative
- Moderate pointThird-quarter total revenue decreased 1.0% to $120.9 million from $122.1 million.
- Moderate pointCash and cash equivalents totaled $1.5 million against outstanding debt of $101.0 million at September 29, 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Company expects 34 to 36 company-owned restaurant closures in 2026.
- Minor pointThird-quarter restaurant revenue declined to $118.509 million from $119.579 million a year earlier.
- Minor pointThird-quarter franchising royalties, fees and other revenue declined to $2.363 million from $2.507 million.
8 minor points
- Minor pointThird-quarter general and administrative expenses increased to $13.583 million from $12.272 million a year earlier.
- Minor pointThird-quarter other restaurant operating costs increased to $24.696 million from $24.558 million a year earlier.
- Minor pointFirst-three-quarter total revenue declined to $371.695 million from $372.313 million in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.Company expects seven to eight franchised restaurant closures in 2026.
- Minor point. Forward-looking: it has not happened yet and may not happen.Company expects 2026 general and administrative expenses of $52 million to $54 million, including stock-based compensation.
- Minor point. Forward-looking: it has not happened yet and may not happen.Company expects 2026 depreciation and amortization of $23 million to $24 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.Company expects 2026 net interest expense of approximately $10 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.Company expects 2026 capital expenditures of $8.5 million to $9.5 million.
News Explained
In its third-quarter results, Noodles & Company reported 306 company-owned restaurants as of
Key Figures
- Q3 total revenue
- $120.9 million, down 1.0%
- Q3 2026 versus Q3 2025
- Comparable restaurant sales
- 9.5% increase
- Q3 2026, system-wide
- Net loss
- $2.1 million
- Q3 2026, compared with $9.2 million in Q3 2025
- Restaurant contribution margin
- 16.7%
- Q3 2026, compared with 13.2% in Q3 2025
- Adjusted EBITDA
- $8.7 million
- Q3 2026, compared with $6.5 million in Q3 2025
- Expected full-year revenue
- $485 million to $495 million
- Fiscal year 2026 outlook
- Expected full-year Adjusted EBITDA
- $35 million to $37 million
- Fiscal year 2026 outlook
- Credit facility maturity
- November 30, 2027
- Maturity date extended in the November 12, 2026 amendment
Previous Earnings Reports
-
Comparable sales increased, losses narrowed, and adjusted EBITDA rose as management raised full-year guidance.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
non-gaap financial measures financial
adjusted ebitda financial
revolving credit facility financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Third Quarter 2026 Comparable Restaurant Sales Increased
BROOMFIELD, Colo., Nov. 13, 2026 (GLOBE NEWSWIRE) -- Noodles & Company (Nasdaq: NDLS) today announced financial results for its third quarter ended September 29, 2026.
Key highlights for the third quarter of 2026 versus the third quarter of 2025 include:
- Total revenue decreased
1.0% to$120.9 million from$122.1 million . - Comparable restaurant sales increased
9.5% system-wide, comprised of a10.7% increase at company-owned restaurants and a4.9% increase at franchise restaurants. - Net loss was
$2.1 million , or$0.36 loss per diluted share, compared to net loss of$9.2 million , or$1.58 loss per diluted share, in the third quarter of 2025. - Operating margin was
0.1% compared to (5.2)% in the third quarter of 2025. - Restaurant contribution margin(1) was
16.7% compared to13.2% in the third quarter of 2025. - Adjusted EBITDA(1) increased
34.3% to$8.7 million compared to$6.5 million in the third quarter of 2025.
| (1) | Restaurant contribution margin and adjusted EBITDA are non-GAAP measures. Reconciliations of operating income (loss) to restaurant contribution margin and net loss to adjusted EBITDA are included in the accompanying financial data. See “Non-GAAP Financial Measures.” | |||
Joe Christina, President and Chief Executive Officer of Noodles & Company, commented, “We are very excited that our third quarter performance continued our strong sales momentum and margin expansion, underscoring the sustainability of our growth and the impact of the improvements we have made across the business. System-wide comparable sales grew
Mr. Christina continued, “We have also reduced debt by more than
Liquidity Update and Strategic Review
As of September 29, 2026, the Company had available cash and cash equivalents of
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, refranchising or sale of all or part of the business, and/or other strategic or financial transactions. Such review remains in process.
Business Outlook
Based on management’s assessment of recent trends and results through the first three quarters of the year, the Company is tightening its fiscal year 2026 guidance ranges. The updated outlook reflects greater visibility into expected full-year results while remaining generally consistent with the Company’s prior expectations. The following is expected for the full year 2026:
- Total revenue of
$485 million to$495 million , including comparable restaurant sales growth of9.0% to10.0% ; - Restaurant level contribution margins of
16.0% to16.7% ; - General and administrative expenses of
$52 million to$54 million , inclusive of stock-based compensation expense of$2.5 million to$3.0 million ; - Depreciation and amortization of
$23 million to$24 million ; - Net interest expense of approximately
$10 million ; - Adjusted EBITDA of
$35 million to$37 million ; - One new franchise restaurant opening;
- Restaurant closures: 34 to 36 company-owned restaurants and seven to eight franchised restaurants; and
- Capital expenditures of
$8.5 million to$9.5 million .
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 loss on debt modifications 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 third quarter financial results on Friday, November 13, 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 13762731. The replay will be available until Friday, November 27, 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
No one knows noodles like Noodles. Since 1995, Noodles & Company has brought guests craveable, expertly prepared noodle dishes through a menu that blends classic comfort with bold, globally inspired flavors. From longtime favorites like Creamy Mac & Cheese and Japanese Pan Noodles to comforting bowls of ramen, Noodles draws on more than 30 years of noodle expertise to create dishes that deliver comfort, discovery, and connection in every bowl. 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. 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, capital expenditures, financial condition, liquidity needs, available financing sources 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 or receive any applicable waiver with respect to our covenants under the A&R Credit Agreement on or before maturity; the impact on our operations and financial condition of the need to obtain such refinancing on a timely basis; 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.
| Noodles & Company Condensed Consolidated Statements of Operations (in thousands, except share and per share data, unaudited) | ||||||||||||||||
| Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
| September 29, 2026 | September 30, 2025 | September 29, 2026 | September 30, 2025 | |||||||||||||
| Revenue: | ||||||||||||||||
| Restaurant revenue | $ | 118,509 | $ | 119,579 | $ | 364,750 | $ | 364,686 | ||||||||
| Franchising royalties and fees, and other | 2,363 | 2,507 | 6,945 | 7,627 | ||||||||||||
| Total revenue | 120,872 | 122,086 | 371,695 | 372,313 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Restaurant operating costs (exclusive of depreciation and amortization shown separately below): | ||||||||||||||||
| Cost of sales | 29,347 | 30,709 | 91,259 | 95,862 | ||||||||||||
| Labor | 34,908 | 37,499 | 108,056 | 116,174 | ||||||||||||
| Occupancy | 9,773 | 11,076 | 30,292 | 33,963 | ||||||||||||
| Other restaurant operating costs | 24,696 | 24,558 | 75,780 | 74,628 | ||||||||||||
| General and administrative | 13,583 | 12,272 | 39,954 | 37,486 | ||||||||||||
| Depreciation and amortization | 5,672 | 6,604 | 17,553 | 20,833 | ||||||||||||
| Pre-opening | — | 6 | — | 226 | ||||||||||||
| Restaurant impairments, closure costs and asset disposals | 2,748 | 5,681 | 11,009 | 20,625 | ||||||||||||
| Total costs and expenses | 120,727 | 128,405 | 373,903 | 399,797 | ||||||||||||
| Income (loss) from operations | 145 | (6,319 | ) | (2,208 | ) | (27,484 | ) | |||||||||
| Interest expense, net | 2,288 | 2,827 | 7,276 | 8,227 | ||||||||||||
| Loss before income taxes | (2,143 | ) | (9,146 | ) | (9,484 | ) | (35,711 | ) | ||||||||
| Provision for income taxes | 3 | 5 | 30 | 49 | ||||||||||||
| Net loss | $ | (2,146 | ) | $ | (9,151 | ) | $ | (9,514 | ) | $ | (35,760 | ) | ||||
| Loss per share | ||||||||||||||||
| Basic and diluted (1) | $ | (0.36 | ) | $ | (1.58 | ) | $ | (1.61 | ) | $ | (6.20 | ) | ||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic and diluted (1) | 5,970,160 | 5,807,356 | 5,919,604 | 5,766,872 | ||||||||||||
_____________________
(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.
| Noodles & Company Consolidated Selected Balance Sheet Data and Selected Operating Data (in thousands, except restaurant activity, unaudited) | ||||||||
| As of | ||||||||
| September 29, 2026 | December 30, 2025 | |||||||
| Balance Sheet Data | ||||||||
| Total current assets | $ | 19,355 | $ | 18,893 | ||||
| Total assets | 233,178 | 261,671 | ||||||
| Total current liabilities | 67,576 | 61,845 | ||||||
| Total long-term debt | 100,236 | 108,776 | ||||||
| Total liabilities | 285,919 | 306,976 | ||||||
| Total stockholders’ deficit | (52,741 | ) | (45,305 | ) | ||||
| Fiscal Quarter Ended | ||||||||||||||||||||
| September 29, 2026 | June 30, 2026 | March 31, 2026 | December 30, 2025 | September 30, 2025 | ||||||||||||||||
| Selected Operating Data | ||||||||||||||||||||
| Restaurant Activity: | ||||||||||||||||||||
| Company-owned restaurants at end of period | 306 | 318 | 320 | 340 | 349 | |||||||||||||||
| Franchise restaurants at end of period | 77 | 78 | 80 | 83 | 86 | |||||||||||||||
| Revenue Data: | ||||||||||||||||||||
| Company-owned average unit volume | $ | 1,545 | $ | 1,568 | $ | 1,492 | $ | 1,440 | $ | 1,341 | ||||||||||
| Franchise average unit volume | $ | 1,413 | $ | 1,437 | $ | 1,408 | $ | 1,359 | $ | 1,311 | ||||||||||
| Company-owned comparable restaurant sales | 10.7 | % | 11.4 | % | 9.4 | % | 7.3 | % | 4.0 | % | ||||||||||
| Franchise comparable restaurant sales | 4.9 | % | 5.5 | % | 8.0 | % | 3.8 | % | 4.3 | % | ||||||||||
| System-wide comparable restaurant sales | 9.5 | % | 10.3 | % | 9.1 | % | 6.6 | % | 4.0 | % | ||||||||||
Reconciliations of Non-GAAP Measurements to GAAP Results
| Noodles & Company Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (in thousands, unaudited) | ||||||||||||||||
| Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
| September 29, 2026 | September 30, 2025 | September 29, 2026 | September 30, 2025 | |||||||||||||
| Net loss | $ | (2,146 | ) | $ | (9,151 | ) | $ | (9,514 | ) | $ | (35,760 | ) | ||||
| Depreciation and amortization | 5,672 | 6,604 | 17,553 | 20,833 | ||||||||||||
| Interest expense, net | 2,288 | 2,827 | 7,276 | 8,227 | ||||||||||||
| Provision for income taxes | 3 | 5 | 30 | 49 | ||||||||||||
| EBITDA | $ | 5,817 | $ | 285 | $ | 15,345 | $ | (6,651 | ) | |||||||
| Restaurant impairments(1) | 1,219 | 5,326 | 8,727 | 17,813 | ||||||||||||
| Loss on disposal of assets | 482 | 698 | 1,554 | 2,461 | ||||||||||||
| Lease exit (benefits) costs, net | (124 | ) | (1,278 | ) | (2,585 | ) | (2,156 | ) | ||||||||
| Severance, executive transition costs and corporate transaction costs | 823 | 334 | 1,669 | 800 | ||||||||||||
| Stock-based compensation expense | 509 | 1,133 | 2,439 | 2,651 | ||||||||||||
| Adjusted EBITDA | $ | 8,726 | $ | 6,498 | $ | 27,149 | $ | 14,918 | ||||||||
______________________________
(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.
| Noodles & Company Reconciliation of Net Loss to Adjusted Net Loss (in thousands, except share and per share data, unaudited) | ||||||||||||||||
| Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
| September 29, 2026 | September 30, 2025 | September 29, 2026 | September 30, 2025 | |||||||||||||
| Net loss | $ | (2,146 | ) | $ | (9,151 | ) | $ | (9,514 | ) | $ | (35,760 | ) | ||||
| Restaurant impairments (1) | 1,219 | 5,326 | 8,727 | 17,813 | ||||||||||||
| Lease exit (benefits) costs, net | (124 | ) | (1,278 | ) | (2,585 | ) | (2,156 | ) | ||||||||
| Severance, executive transition costs and corporate transaction costs | 823 | 334 | 1,669 | 800 | ||||||||||||
| Tax impact of adjustments above (2) | 2 | (3 | ) | 21 | 1 | |||||||||||
| Adjusted net loss | $ | (226 | ) | $ | (4,772 | ) | $ | (1,682 | ) | $ | (19,302 | ) | ||||
| Loss per share | ||||||||||||||||
| Basic and diluted (3) | $ | (0.36 | ) | $ | (1.58 | ) | $ | (1.61 | ) | $ | (6.20 | ) | ||||
| Adjusted loss per share (3) | ||||||||||||||||
| Basic and diluted | $ | (0.04 | ) | $ | (0.82 | ) | $ | (0.28 | ) | $ | (3.35 | ) | ||||
| Weighted average common shares outstanding (3) | ||||||||||||||||
| Basic and diluted | 5,970,160 | 5,807,356 | 5,919,604 | 5,766,872 | ||||||||||||
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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.
| (1) | Restaurant impairments in all periods presented above include amounts related to restaurants previously impaired. |
| (2) | The tax impact of the other adjustments is immaterial while the Company has a full valuation allowance and significant net operating losses. |
| (3) | 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. |
| Noodles & Company Reconciliation of Operating Income (Loss) to Restaurant Contribution (in thousands, unaudited) | ||||||||||||||||
| Fiscal Quarter Ended | Three Fiscal Quarters Ended | |||||||||||||||
| September 29, 2026 | September 30, 2025 | September 29, 2026 | September 30, 2025 | |||||||||||||
| Income (loss) from operations | $ | 145 | $ | (6,319 | ) | $ | (2,208 | ) | $ | (27,484 | ) | |||||
| Less: Franchising royalties and fees, and other | 2,363 | 2,507 | 6,945 | 7,627 | ||||||||||||
| Plus: General and administrative | 13,583 | 12,272 | 39,954 | 37,486 | ||||||||||||
| Depreciation and amortization | 5,672 | 6,604 | 17,553 | 20,833 | ||||||||||||
| Pre-opening | — | 6 | — | 226 | ||||||||||||
| Restaurant impairments, closure costs and asset disposals | 2,748 | 5,681 | 11,009 | 20,625 | ||||||||||||
| Restaurant contribution | $ | 19,785 | $ | 15,737 | $ | 59,363 | $ | 44,059 | ||||||||
| Restaurant contribution margin | 16.7 | % | 13.2 | % | 16.3 | % | 12.1 | % | ||||||||
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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 Relations
investorrelations@noodles.com
Media
Danielle Moore
press@noodles.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Noodles & Company's third-quarter 2026 earnings results?
Noodles & Company reported a $2.1 million net loss, or $0.36 per diluted share, compared with a $9.2 million loss, or $1.58 per diluted share, a year earlier. Revenue decreased 1.0% to $120.9 million, while system-wide comparable restaurant sales increased 9.5%.
What is Noodles & Company's updated 2026 outlook?
Noodles & Company expects $485 million to $495 million in revenue and $35 million to $37 million in adjusted EBITDA for 2026. Its outlook includes comparable restaurant sales growth of 9.0% to 10.0% and restaurant contribution margins of 16.0% to 16.7%.
What strategic alternatives is Noodles & Company reviewing?
Noodles & Company’s ongoing review includes refinancing existing debt, refranchising or selling all or part of the business, and other strategic or financial transactions. The board initiated the review on September 3, 2025, with the stated goal of maximizing stockholder value.
How many restaurant closures does Noodles & Company expect in 2026?
Noodles & Company expects 34 to 36 company-owned restaurant closures and seven to eight franchised restaurant closures in 2026. It also expects one new franchise restaurant opening during the year.