Stronger comps lift Noodles & Company (NDLS) margins despite store closures

Rhea-AI Filing Summary

Noodles & Company narrowed its quarterly loss as stronger restaurant performance offset a smaller store base. Total revenue was $123.8 million, essentially flat year over year, but net loss improved to $3.4 million from $9.1 million, or $0.58 per share after a 1-for-8 reverse stock split.

System-wide comparable restaurant sales rose 9.1%, and average unit volumes increased 13.5% to $1.49 million, helped by menu innovation and closures of underperforming locations. Restaurant contribution margin expanded to 14.9% from 10.3%, and adjusted EBITDA rose to $7.7 million. The company closed 20 company-owned restaurants, ended the quarter with 400 locations, and carried $106.8 million of debt against $1.4 million of cash while remaining in compliance with credit covenants and continuing a strategic review of alternatives.

Insights

Restaurant sector equity analyst

Stronger unit economics and comps, but leverage and net losses remain key constraints.

Noodles & Company delivered much better unit-level performance in the first quarter of 2026. System-wide comparable sales grew 9.1%, company-owned comps rose 9.4%, and average unit volumes increased to $1.49M, helped by menu changes and traffic consolidation from permanently closed stores.

Restaurant contribution margin expanded to 14.9% from 10.3%, and adjusted EBITDA rose to $7.65M from $2.40M, driving a net loss improvement to $3.4M. However, long-term debt of $106.8M against cash of $1.4M keeps the balance sheet tight, even though the company reports covenant compliance under its credit facility.

The 1-for-8 reverse stock split and the ongoing strategic review, which could include refinancing, refranchising or a sale, underscore the importance of restoring sustainable profitability. Future quarters will show whether margin gains and planned restaurant closures translate into consistent positive cash flow under the amended leverage and coverage covenants.

Key Figures

Total revenue: $123.8M Net loss: $3.4M Loss per share: $0.58 +5 more

8 metrics

Total revenue $123.8M Fiscal quarter ended March 31, 2026

Net loss $3.4M Q1 2026 vs $9.1M in Q1 2025

Loss per share $0.58 Basic and diluted, Q1 2026, post 1-for-8 reverse split

System-wide comparable sales 9.1% Increase in first quarter 2026 vs first quarter 2025

Restaurant contribution margin 14.9% Q1 2026 vs 10.3% in Q1 2025

Adjusted EBITDA $7.65M Q1 2026 vs $2.40M in Q1 2025

Debt outstanding $106.8M Indebtedness under A&R Credit Agreement as of March 31, 2026

Restaurants in system 400 units 320 company-owned, 80 franchised, as of March 31, 2026

Key Terms

Reverse Stock Split, Adjusted EBITDA, Consolidated Total Lease Adjusted Leverage Ratio, valuation allowance, +2 more

6 terms

Reverse Stock Split financial

"The reverse stock split was effectuated on February 18, 2026 at a 1-for-8 ratio"

A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.

Adjusted EBITDA financial

"Adjusted EBITDA was $7,652 for the fiscal quarter ended March 31, 2026"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Consolidated Total Lease Adjusted Leverage Ratio financial

"conditioned the use of the general restricted payment basket on satisfaction of a Consolidated Total Lease Adjusted Leverage Ratio"

valuation allowance financial

"The effective tax rate for the first quarter of 2026 and 2025, reflects the impact of the previously recorded valuation allowance"

A valuation allowance is a reserve set aside to reduce the value of certain assets on a company's financial records when there is uncertainty about whether they will generate the expected benefits. It acts like a caution sign, indicating that some assets might not be fully recoverable or worth their recorded amount. This matters to investors because it provides a more realistic picture of a company's financial health and potential risks.

Noodles Rewards program financial

"The Company operates the Noodles Rewards program, which is primarily a spend-based loyalty program"

A&R Credit Agreement financial

"the Company amended and restated its Credit Agreement by entering into the Amended and Restated Credit Agreement"

10-Q Quarterly Reports: What Changes Quarter to Quarter →

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

_____________________________________________________________

FORM 10-Q

_____________________________________________________________

    ☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the quarterly period ended March 31, 2026

or

    ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission File Number: 001-35987

___________________________________________________________

NOODLES & COMPANY

(Exact name of registrant as specified in its charter)

_____________________________________________________________

Delaware						84-1303469
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

520 Zang Street, Suite D
Broomfield, CO						80021
(Address of principal executive offices)						(Zip Code)

(720) 214-1900

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act

Title of each class			Trading Symbol			Name of each exchange on which registered
Class A Common Stock, $0.01 par value per share			NDLS			Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  

Yes  ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ☐  No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class						Outstanding at May 1, 2026
Class A Common Stock, $0.01 par value per share						5,892,049 shares

Table of Contents

TABLE OF CONTENTS

									Page
PART I
			Item 1.			Financial Statements (unaudited)			2
						Condensed Consolidated Balance Sheets			2
						Condensed Consolidated Statements of Operations			3
						Condensed Consolidated Statements of Stockholders’ Equity (Deficit)			4
						Condensed Consolidated Statements of Cash Flows			5
						Notes to Condensed Consolidated Financial Statements			6
			Item 2.			Management's Discussion and Analysis of Financial Condition and Results of Operations			15
			Item 3.			Quantitative and Qualitative Disclosures About Market Risk			25
			Item 4.			Controls and Procedures			25
PART II
			Item 1.			Legal Proceedings			27
			Item 1A.			Risk Factors			27
			Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			27
			Item 3.			Defaults Upon Senior Securities			27
			Item 4.			Mine Safety Disclosures			27
			Item 5.			Other Information			27
			Item 6.			Exhibits			28
SIGNATURES									29

1

Table of Contents

PART I

Item 1. Financial Statements

Noodles & Company

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

						March 31, 2026						December 30, 2025
						(unaudited)
Assets
Current assets:
Cash and cash equivalents						$	1,444					$	1,265
Accounts receivable						4,291						4,064
Inventories						9,580						10,218
Prepaid expenses and other assets						2,431						3,034
Income tax receivable						314						312
Total current assets						18,060						18,893
Property and equipment, net						102,498						107,359
Operating lease assets, net						116,859						126,319
Goodwill						7,154						7,154
Intangibles, net						406						420
Other assets, net						1,338						1,526
Total long-term assets						228,255						242,778
Total assets						$	246,315					$	261,671
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable						$	16,361					$	16,545
Accrued payroll and benefits						11,487						7,235
Accrued expenses and other current liabilities						10,813						11,808
Current operating lease liabilities						25,691						26,257
Total current liabilities						64,352						61,845
Long-term debt, net						105,597						108,776
Long-term operating lease liabilities, net						115,856						126,924
Deferred tax liabilities, net						322						316
Other long-term liabilities						8,231						9,115
Total liabilities						294,358						306,976
Stockholders’ deficit:
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of March 31, 2026 and December 30, 2025; no shares issued or outstanding						—						—
Common stock—$0.01 par value, 180,000,000 shares authorized as of March 31, 2026 and December 30, 2025; 6,195,034 issued and 5,892,050 outstanding as of March 31, 2026 and 6,155,333 issued and 5,852,349 outstanding as of December 30, 2025 (1)						62						62
Treasury stock, at cost, 302,984 shares as of March 31, 2026 and December 30, 2025 (1)						(35,000)						(35,000)
Additional paid-in capital						217,337						216,658
Accumulated deficit						(230,442)						(227,025)
Total stockholders’ deficit						(48,043)						(45,305)
Total liabilities and stockholders’ deficit						$	246,315					$	261,671

_________________

(1) Shares have been retroactively adjusted to reflect the decreased number of shares resulting from a 1-for-8 reverse stock split effectuated on February 18, 2026.

   See accompanying notes to condensed consolidated financial statements.

2

Table of Contents

Noodles & Company

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data, unaudited)

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
Revenue:
Restaurant revenue						$	121,440					$	121,326
Franchising royalties and fees, and other						2,346						2,468
Total revenue						123,786						123,794
Costs and expenses:
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Cost of sales						30,893						32,293
Labor						36,410						39,396
Occupancy						10,354						11,494
Other restaurant operating costs						25,712						25,656
General and administrative						12,514						12,810
Depreciation and amortization						5,981						7,090
Pre-opening						—						151
Restaurant impairments, closure costs and asset disposals						2,734						1,291
Total costs and expenses						124,598						130,181
Loss from operations						(812)						(6,387)
Interest expense, net						2,598						2,647
Loss before income taxes						(3,410)						(9,034)
Provision for income taxes						7						23
Net loss						$	(3,417)					$	(9,057)
Loss per Class A and Class B common stock, combined
Basic and diluted (1)						$	(0.58)					$	(1.58)
Weighted average shares of Class A and Class B common stock outstanding, combined
Basic and diluted (1)						5,861,370						5,722,919

__________________

(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 effectuated on February 18, 2026.

See accompanying notes to condensed consolidated financial statements.

3

Table of Contents

Noodles & Company

Condensed Consolidated Statements of Stockholders’ Equity (Deficit)

(in thousands, except share data, unaudited)

						Fiscal Quarter Ended
						Common Stock(1)												Treasury												Additional Paid-In Capital						Accumulated Deficit						Total Stockholders’ Equity (Deficit)
						Shares (2)						Amount						Shares (2)						Amount
Balance—December 30, 2025						6,155,333						$	62					302,984						$	(35,000)					$	216,658					$	(227,025)					$	(45,305)
Stock plan transactions and other						39,701						—						—						—						(81)						—						(81)
Stock-based compensation expense						—						—						—						—						760						—						760
Net loss						—						—						—						—						—						(3,417)						(3,417)
Balance—March 31, 2026						6,195,034						$	62					302,984						$	(35,000)					$	217,337					$	(230,442)					$	(48,043)
Balance—December 31, 2024						6,020,235						$	60					302,984						$	(35,000)					$	213,818					$	(184,457)					$	(5,579)
Stock plan transactions and other						25,704						—						—						—						(51)						—						(51)
Stock-based compensation expense						—						—						—						—						782						—						782
Net loss						—						—						—						—						—						(9,057)						(9,057)
Balance—April 1, 2025						6,045,939						$	60					302,984						$	(35,000)					$	214,549					$	(193,514)					$	(13,905)

_____________

(1)Unless otherwise noted, activity relates to Class A common stock.

(2)Shares have been retroactively adjusted to reflect the decreased number of shares resulting from a 1-for-8 reverse stock split effectuated on February 18, 2026.

See accompanying notes to condensed consolidated financial statements.

4

Table of Contents

Noodles & Company

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
Operating activities
Net loss						$	(3,417)					$	(9,057)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization						5,981						7,090
Deferred income taxes, net						6						23
Restaurant impairments, closure costs and asset disposals						1,337						257
Amortization of debt issuance costs						220						220
Stock-based compensation						760						771
Changes in operating assets and liabilities:
Accounts receivable						(227)						(218)
Inventories						4						(744)
Prepaid expenses and other assets						824						642
Accounts payable						84						3,319
Income taxes						(2)						(6)
Operating lease assets and liabilities						(1,105)						(739)
Accrued expenses and other liabilities						1,551						2,475
Net cash provided by operating activities						6,016						4,033
Investing activities
Purchases of property and equipment						(2,077)						(2,918)
Net cash used in investing activities						(2,077)						(2,918)
Financing activities
Net payments from swing line loan						(399)						(5,939)
Proceeds from borrowings on long-term debt						—						5,600
Payments on long-term debt						(3,000)						—
Payments on finance leases						(280)						(478)
Stock plan transactions and tax withholding on share-based compensation awards						(81)						(51)
Net cash used in financing activities						(3,760)						(868)
Net increase in cash and cash equivalents						179						247
Cash and cash equivalents
Beginning of period						1,265						1,149
End of period						$	1,444					$	1,396

See accompanying notes to condensed consolidated financial statements.

5

Table of Contents

NOODLES & COMPANY

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Business Summary and Basis of Presentation

Business

Noodles & Company (the “Company”), a Delaware corporation, develops and operates fast-casual restaurants that serve globally-inspired noodle and pasta dishes, soups, salads and appetizers. As of March 31, 2026, the Company had 400 restaurants system-wide in 31 states, comprised of 320 company-owned restaurants and 80 franchise restaurants. The Company operates its business as one operating and reportable segment.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of the Company, all adjustments considered necessary for the fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of December 30, 2025 was derived from audited financial statements. These financial statements should be read in conjunction with the audited financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2025.

Fiscal Year

The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. The Company’s fiscal quarters each contain 13 operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains 14 operating weeks. Fiscal year 2026, which ends on December 29, 2026, and fiscal year 2025, which ended on December 30, 2025, each contain 52 weeks. The Company’s fiscal quarter that ended March 31, 2026 is referred to as the first quarter of 2026, and the fiscal quarter ended April 1, 2025 is referred to as the first quarter of 2025.

Reverse Stock Split

On February 4, 2026, the Company's Board of Directors approved a reverse stock split of the Company's issued and outstanding

Class A common stock, par value $0.01 per share. The reverse stock split was effectuated on February 18, 2026 at a 1-for-8 ratio (the “Reverse Stock Split”). All issued and outstanding common stock and per share amounts contained in this 10-Q related to prior periods have been adjusted retroactively to reflect the change in capital structure as a result of the reverse stock split.

Recently Adopted Accounting Pronouncement

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The Company adopted ASU No. 2023-09 prospectively during the year ended December 30, 2025.

Recently Issued Accounting Pronouncement

6

In November 2024, the FASB issued ASU No. 2024-03, "Disaggregation of Income Statement Expenses (Subtopic 220-40)." The ASU requires public entities to disaggregate, in a tabular presentation, certain income statement expenses into different categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and may be applied retrospectively. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements and related disclosures.

2. Supplemental Financial Information

Accounts receivable consist of the following (in thousands):

						March 31, 2026						December 30, 2025
Delivery program receivables						$	2,246					$	1,412
Vendor rebate receivables						416						704
Franchise receivables						797						780
Other receivables						832						1,168
Accounts receivable						$	4,291					$	4,064

Prepaid expenses and other assets consist of the following (in thousands):

						March 31, 2026						December 30, 2025
Prepaid insurance						$	156					$	510
Prepaid occupancy related costs						758						814
Prepaid expenses						1,496						1,689
Other current assets						21						21
Prepaid expenses and other assets						$	2,431					$	3,034

Property and equipment, net, consists of the following (in thousands):

						March 31, 2026						December 30, 2025
Leasehold improvements						$	203,120					$	214,545
Furniture, fixtures and equipment						168,931						176,948
Construction in progress						1,562						2,095
						373,613						393,588
Accumulated depreciation and amortization						(271,115)						(286,229)
Property and equipment, net						$	102,498					$	107,359

Accrued payroll and benefits consist of the following (in thousands):

						March 31, 2026						December 30, 2025
Accrued payroll and related liabilities						$	7,846					$	4,400
Accrued bonus						1,801						1,088
Insurance liabilities						1,840						1,747
Accrued payroll and benefits						$	11,487					$	7,235

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Accrued expenses and other current liabilities consist of the following (in thousands):

						March 31, 2026						December 30, 2025
Gift card liability						$	1,976					$	2,236
Occupancy related						932						1,262
Utilities						1,454						1,498
Current portion of finance lease liability						1,892						1,877
Other restaurant expense accruals						1,220						1,144
Other corporate expense accruals						3,339						3,791
Accrued expenses and other current liabilities						$	10,813					$	11,808

3. Long-Term Debt

On July 27, 2022, the Company amended and restated its Credit Agreement by entering into the Amended and Restated Credit Agreement (as further amended, restated, extended, supplemented, modified and otherwise in effect from time to time, the “A&R Credit Agreement”), with each other Loan Party (as defined in the A&R Credit Agreement) party thereto, each lender from time to time party thereto, and U.S. Bank National Association, as Administrative Agent, L/C Issuer and Swing Line Lender (each as defined in the A&R Credit Agreement). The A&R Credit Agreement matures on July 27, 2027. Among other things, the A&R Credit Agreement: (i) increased the credit facility from $100.0 million to $125.0 million; (ii) eliminated the term loan and principal amortization components of the credit facility; (iii) removed the Company’s capital expenditure covenant; (iv) enhanced flexibility for certain covenants and restrictions; and (v) lowered the spread of the Company’s cost of borrowing and transitioned from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.50% to 2.50% per annum, based upon the consolidated total lease-adjusted leverage ratio. The A&R Credit Agreement is secured by a pledge of stock of substantially all of the Company’s subsidiaries and a lien on substantially all of the personal property assets of the Company and its subsidiaries. The A&R Credit Agreement was subsequently amended on December 21, 2023.

On October 29, 2024, the Company further amended its A&R Credit Agreement, by entering into that certain Second Amendment to the Amended and Restated Credit Agreement (the “Second Amendment”). Among the modifications, the Second Amendment: (i) increased the maximum applicable rate ranges (ii) conditioned the use of the general restricted payment basket on satisfaction of a Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) of less than or equal to 4.00 to 1.00 and a Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) of greater than or equal to 1.25 to 1.00, (iii) restricted entry into new lease agreements so long as the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the A&R Credit Agreement is greater than or equal to 4.50 to 1.00, (iv) increased the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the A&R Credit Agreement to be no greater than (1) 5.25 to 1.00 for the fiscal quarter ending December 30, 2025, (2) 5.00 to 1.00 for the fiscal quarters ending March 31, 2026 and June 30, 2026, (3) 4.75 to 1.00 for the fiscal quarters ending September 29, 2026 and December 29, 2026 and (4) 4.50 to 1.00 for the fiscal quarter ended March 30, 2027 and thereafter and (v) amended the Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(b) of the A&R Credit Agreement to be no less than (x) 1.05 to 1.00 for the fiscal quarter ending on October 1, 2024 until and including the last day of the fiscal quarter ending September 30, 2025 and (y) stepping up to (1) 1.15 to 1.00 for the fiscal quarters ending December 30, 2025 and March 31, 2026 and (2) 1.25 to 1.00 for the fiscal quarter ending June 30, 2026 and thereafter.

As of March 31, 2026, the Company had $106.8 million of indebtedness (excluding $1.2 million of unamortized debt issuance costs) and $3.0 million of letters of credit outstanding under the A&R Credit Agreement. As of March 31, 2026, the Company had cash on hand of $1.4 million.

The Company’s revolver, which had a balance of $106.8 million as of March 31, 2026, bore interest at rates between 7.52% and 7.58% during the first quarter of 2026. The Company’s swingline, which did not have a balance as of March 31, 2026, bore interest at 9.50% in the first quarter of 2026.

The Company also maintains outstanding letters of credit to secure obligations under its workers’ compensation program and certain lease obligations. The Company was in compliance with all of its debt covenants as of March 31, 2026.

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4. Fair Value Measurements

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current assets and liabilities approximate fair value due to their short-term nature. The carrying amounts of borrowings approximate fair value as the line of credit borrowings vary with market interest rates and negotiated terms and conditions are consistent with current market rates. The fair value of the Company’s revolving line of credit borrowings are measured using Level 2 inputs.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Assets recognized or disclosed at fair value in the condensed consolidated financial statements on a non-recurring basis include items such as leasehold improvements, property and equipment, operating lease assets, goodwill and other intangible assets. These assets are measured at fair value if determined to be impaired.

Adjustments to the fair value of assets measured at fair value on a non-recurring basis as of March 31, 2026 and April 1, 2025 are discussed in Note 7, Restaurant Impairments, Closure Costs and Asset Disposals.

5. Income Taxes

The following table presents the Company’s provision for income taxes (in thousands):

			Fiscal Quarter Ended
			March 31, 2026						April 1, 2025
Provision for income taxes			$	7					$	23
Effective income tax rate			(0.2)		%				(0.3)		%

The effective tax rate for the first quarter of 2026 and 2025, reflects the impact of the previously recorded valuation allowance. For the remainder of fiscal 2026, the Company does not anticipate material income tax expense or benefit as a result of the valuation allowance recorded. The Company will maintain the valuation allowance against deferred tax assets until there is sufficient evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit from income tax.

On July 4, 2025, the United States Congress enacted H.R.1, commonly known as the One Big Beautiful Bill Act, which introduces a wide range of tax reform measures. These include extensions and modifications of key provisions from the Tax Cuts and Jobs Act, as well as changes to rules allowing accelerated tax deductions for qualified property and research expenditures. The legislation includes multiple effective dates, with certain provisions that took effect in 2025 and others phased in through 2027. The Company has evaluated the provisions of the legislation and does not expect the adoption or implementation of these measures to have a material impact on its financial statements, effective tax rate, or cash tax position. The Company will continue to monitor forthcoming administrative guidance and regulatory developments that may further clarify the application of the provisions.

6. Stock-Based Compensation

In May of 2023, the Company’s stockholders approved the 2023 Stock Incentive Plan (the “2023 Plan”). The 2023 Plan authorizes the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance share units and incentive bonuses to employees, officers, non-employee directors and other service providers, as applicable. As of March 31, 2026, approximately 0.5 million share-based awards were available to be granted under the 2023 Plan. In July of 2024, the Company’s Board of Directors adopted the 2024 Inducement Plan (the “Inducement Plan”). The Inducement Plan provides for the potential grant of options, stock appreciation rights, restricted stock and restricted stock units, any of which may be performance-based, and for incentive bonuses, which may be paid in cash or stock or a combination thereof, for certain newly hired employees. As of March 31, 2026, 37,982 share-based awards were available to be granted under the Inducement Plan.

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The following table shows total stock-based compensation expense (in thousands):

			Fiscal Quarter Ended
			March 31, 2026						April 1, 2025
Stock-based compensation expense			$	786					$	790
Capitalized stock-based compensation expense			$	—					$	11

7. Restaurant Impairments, Closure Costs and Asset Disposals

The following table presents restaurant impairments, closure costs and asset disposals (in thousands):

			Fiscal Quarter Ended
			March 31, 2026						April 1, 2025
Restaurant impairments (1)			$	2,661					$	626
Closure costs (1)			(511)						(747)
Loss on disposal of assets and other			584						1,412
			$	2,734					$	1,291

_____________________________

(1)Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed.

Impairment is based on management’s current assessment of the expected future cash flows of a restaurant based on recent results and other specific market factors. Impairment expense is a Level 3 fair value measure and is determined by comparing the carrying value of restaurant assets to the estimated fair value of the restaurant assets at resale value, if any, and the right-of-use asset based on a discounted cash flow analysis utilizing market lease rates.

The Company has identified a group of restaurants that the Company will seek to close on or before their next lease renewal dates, and are unlikely to recover the net book value of their assets. In the first quarter of 2026, the Company recorded fixed asset impairment charges on three restaurants, and wrote down lease related assets on ten restaurants. In the first quarter of 2025, no restaurants were identified as having impaired fixed assets. In the first quarter of 2025, the Company wrote down lease related assets for one restaurant. All periods include ongoing equipment costs for restaurants previously impaired.

The Company closed 20 restaurants during the first quarter of 2026. The Company closed three restaurants in the first quarter of 2025. Both periods included ongoing expenses from restaurant closures during the period and in prior years. Closure costs were offset by gains from lease asset remeasurements and the adjustments to liabilities as lease terminations occur resulting in net gains of $0.5 million and $0.7 million in the first quarters of 2026 and 2025, respectively.

8. Earnings (Loss) Per Share

Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using net income (loss) available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options and restricted common stock. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

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The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data). The number of shares and loss per share for the prior period have been restated to reflect the 1-for-8 Reverse Stock Split effectuated on February 18, 2026.

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
Net loss attributable to common stockholders						$	(3,417)					$	(9,057)
Shares:
Basic weighted average shares outstanding						5,861,370						5,722,919
Effect of dilutive securities						—						—
Diluted weighted average shares outstanding						5,861,370						5,722,919
Loss per share
Basic and diluted loss per share						$	(0.58)					$	(1.58)

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. Potential common shares are excluded from the computation of diluted loss per share when the effect would be anti-dilutive. Shares issuable on the vesting or exercise of share-based awards were excluded from the calculation of diluted loss per share because the effect of their inclusion would have been anti-dilutive totaled 348,382 and 474,151 for the first quarters of 2026 and 2025, respectively.

9. Leases

Supplemental balance sheet information related to leases is as follows (in thousands):

Classification									March 31, 2026						December 30, 2025
Assets
Operating			Operating lease assets, net						$	116,859					$	126,319
Finance			Property and equipment						5,785						6,373
Total leased assets									$	122,644					$	132,692
Liabilities
Current lease liabilities
Operating			Current operating lease liabilities						$	25,691					$	26,257
Finance			Accrued expenses and other current liabilities						1,892						1,877
Long-term lease liabilities
Operating			Long-term operating lease liabilities						115,856						126,924
Finance			Other long-term liabilities						4,639						5,020
Total lease liabilities									$	148,078					$	160,078

Sublease income recognized in the Condensed Consolidated Statements of Operations was $0.5 million and $0.7 million for the first quarters of 2026 and 2025, respectively.

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Supplemental disclosures of cash flow information related to leases are as follows (in thousands):

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
Cash paid for lease liabilities:
Operating leases						$	9,602					$	10,746
Finance leases						432						624
						$	10,034					$	11,370
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases						$	493					$	1,320
Finance leases						—						4,594
						$	493					$	5,914

10. Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows

The following table presents the supplemental disclosures to the Condensed Consolidated Statements of Cash Flows for the first quarter ended March 31, 2026 and April 1, 2025 (in thousands):

						March 31, 2026						April 1, 2025
Interest paid (net of amounts capitalized)						$	2,301					$	2,238
Income taxes paid						2						7
Purchases of property and equipment accrued in accounts payable						1,020						2,392

11. Revenue Recognition

Revenue

Revenue consists of sales from restaurant operations, franchise royalties and fees, and sublease income. Revenue from the operation of company-owned restaurants is recognized when sales occur. Revenue from sales made through third-party delivery services are recognized upon the transfer of food to the guest, excluding the delivery fee. Revenue from sales made through the Company website or mobile app are generally recognized including delivery fees. The Company reports revenue net of sales tax collected from customers and remitted to governmental taxing authorities.

Gift Cards

The Company sells gift cards which do not have an expiration date, and it does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer or the Company determines the likelihood of the gift card being redeemed by the customer is remote (“gift card breakage”). The determination of the gift card breakage rate is based upon Company-specific historical redemption patterns. The Company has determined that approximately 15% of gift cards will not be redeemed and recognizes gift card breakage ratably over the estimated redemption period of the gift card, which is approximately 24 months. Gift card liability balances are typically highest at the end of each calendar year following increased gift card purchases during the holiday season.

As of March 31, 2026 and December 30, 2025, the current portion of the gift card liability amounting to $2.0 million and $2.2 million, respectively, was included in accrued expenses and other current liabilities, and the long-term portion amounting to $0.6 million and $0.8 million, respectively, was included in other long-term liabilities in the Condensed Consolidated Balance Sheets.

Revenue recognized in the Condensed Consolidated Statements of Operations for the redemption of gift cards was $0.8 million for both the first quarters of 2026 and 2025, respectively.

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Franchise Fees

Royalties from franchise restaurants are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants’ sales occur. Development and franchise fees, portions of which are collected in advance, are nonrefundable and are recognized in income ratably over the term of the related franchise agreement or recognized upon the termination of the agreement between the Company and the franchisee. The Company has determined that the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement and should be treated as a single performance obligation; therefore, initial fees received from franchisees are recognized as revenue over the term of each respective franchise agreement, which is typically 20 years.

Loyalty Program

The Company operates the Noodles Rewards program, which is primarily a spend-based loyalty program. With each purchase, Noodles Rewards members earn loyalty points that can be redeemed for rewards, including free products. Using an estimate of the value of reward redemptions, we defer revenue associated with points earned, net of estimated points that will not be redeemed based upon the Company’s historical redemption patterns. Points generally expire after six months. Revenue is recognized in a future period when the reward points are redeemed. As of March 31, 2026 and December 30, 2025, the deferred revenue related to the rewards was $0.9 million and $1.1 million, respectively, and is included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets.

12. Commitments and Contingencies

In the normal course of business, the Company is subject to proceedings, lawsuits and claims. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of March 31, 2026. These matters could affect the operating results of any one financial reporting period when resolved in future periods. The Company believes that an unfavorable outcome with respect to these matters is remote or a potential range of loss is not material to its consolidated financial statements. Significant increases in the number of these claims, or one or more successful claims that result in greater liabilities than the Company currently anticipates, could materially and adversely affect its business, financial condition, results of operations or cash flows.

13. Segment Reporting

The Company’s Chief Operating Decision Maker (“CODM”) is the senior executive team that includes the President and Chief Executive Officer and the Chief Financial Officer. The Company has one reportable operating segment. The one reportable segment derives its revenue from company-owned restaurants and franchise owned restaurants. No guest accounts for 10% or more of the Company’s revenues. The Company’s CODM uses income (loss) from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.

The following table presents selected financial information with respect to our single reportable segment regularly reviewed by our CODM (in thousands):

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						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
Revenue:
Restaurant revenue						$	121,440					$	121,326
Franchising royalties and fees, and other						2,346						2,468
Total segment revenue						123,786						123,794
Less:
Cost of sales						30,893						32,293
Labor						36,410						39,396
Occupancy						10,354						11,494
Other restaurant operating costs						25,712						25,656
General and administrative						12,514						12,810
Depreciation and amortization						5,981						7,090
Pre-opening						—						151
Restaurant impairments, closure costs and asset disposals						2,734						1,291
Total segment expenses						124,598						130,181
Segment loss from operations						$	(812)					$	(6,387)
Reconciliation:
Interest expense, net						2,598						2,647
Consolidated loss before income taxes						$	(3,410)					$	(9,034)

						March 31, 2026						December 30, 2025
Other segment disclosures (in thousands):
Total long-lived assets (1)						$	219,357					$	233,678
Total assets						$	246,315					$	261,671

_____________________

(1)Long-lived assets include the Company’s property and equipment and operating lease assets presented in the Condensed Consolidated Balance Sheets.

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NOODLES & COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Noodles & Company is a Delaware corporation that was organized in 2002. Noodles & Company and its subsidiaries are sometimes referred to as “we,” “us,” “our” and the “Company” in this report. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes in Item 1 and with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for our fiscal year ended December 30, 2025. We operate on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. Our fiscal quarters each contain 13 operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains 14 operating weeks. Fiscal years 2026 and 2025 contain 52 weeks.    

Cautionary Note Regarding Forward-Looking Statements

In addition to historical information, this discussion and analysis 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 projected capital expenditures and our financial results, condition and liquidity needs. 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 and ability to obtain financing on acceptable terms, if at all, and comply with our covenants under the A&R Credit Agreement, our ability to sustain our overall growth, including, our digital sales growth; 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 operational strategies to improve the performance of our restaurant portfolio; 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 inflation, an economic recession, an elevated interest rate environment, tariffs and trade restrictions and any impact of government shutdowns on overall economic conditions and consumer spending; 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 and those discussed in “Special Note Regarding Forward-Looking Statements” and “Risk Factors” as filed in our Annual Report on Form 10-K for our fiscal year ended December 30, 2025.

Recent Trends, Risks and Uncertainties

Reverse Stock Split. On February 18, 2026, the amendment to our Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) took effect to implement the Reverse Stock Split of our issued and outstanding shares of Class A common stock, par value $0.01 per share, at a ratio of 1-for-8.

No fractional shares were issued as a result of the Reverse Stock Split and it did not impact the par value of our common stock. Neither the Reverse Stock Split nor the related amendment to the Certificate of Incorporation had any impact on the number of shares of common stock or preferred stock we are authorized to issue under the Certificate of Incorporation or the number of issued and outstanding shares of our preferred stock (of which there are currently none).

All shares of common stock, stock-based compensation awards and per share amounts for the prior periods included in the Consolidated Financial Statements and applicable notes of this 10-Q and elsewhere in this 10-Q have been adjusted retroactively to reflect the effect of the Reverse Stock Split and related amendment to the Certificate of Incorporation.

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Strategic Review. On September 3, 2025, we announced that our 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.

Revenue. In the first quarter, we saw an increase in revenue as a result of an increase in comparable restaurant sales, mostly offset by permanent restaurant closures. System-wide comparable restaurant sales increased 9.1% in the first quarter of 2026 compared to the same period of 2025, comprised of a 9.4% increase at company-owned restaurants and an 8.0% increase at franchise-owned restaurants. Our comparable restaurant sales have been positive since the introduction of our new menu aided by the introduction of Delicious Duos in late July, the introduction of recent successful limited time offerings, like Chili Garlic Ramen and Steak Stroganoff, and the benefit of sales transferring from restaurants that we closed to our nearby restaurants.

Cost of Sales. Our first quarter 2026 cost of sales benefited from an increase in menu prices and reduced food waste related to new menu items, which offset the impact of inflation. We continue to monitor commodity inflation and, throughout periods of volatility, we will continue to work with our suppliers to identify ongoing supply chain efficiencies, including adding additional suppliers as necessary.

We have evaluated and will continue to evaluate the impact of import laws and tariffs, including the potential for any refunds, on our operations as some of our food items are imported from India, Mexico and other countries. As of March 31, 2026, there was no material impact on our business, financial condition, results of operations or cash flows. However, we expect tariffs may impact our operations in certain areas, such as food and beverage costs, construction and equipment costs and other restaurant operating costs, for the remainder of fiscal 2026. We will continue to utilize fixed price contracts for certain key items to mitigate risk.

Labor Costs. Similar to much of the restaurant industry, our base labor costs have risen in recent years. We have been able to partially mitigate the impact of these market factors through a continued focus on maximizing efficiencies of labor hour usage per restaurant and wage inflation has stabilized to less than 3%.

Other Restaurant Operating Costs. We have incurred, and expect to continue to incur, increased third-party delivery fees due to significant increased usage of third-party delivery services resulting in a higher mix of third party delivery sales.

Restaurant Development. We did not open any new company-owned restaurants in the first quarter of 2026 and do not plan to open any company-owned restaurants in 2026. As of March 31, 2026, we had 320 company-owned restaurants and 80 franchise restaurants in 31 states.

Impairments and Certain Restaurant Closures. We impaired fixed assets related to three restaurants in the first quarter of 2026 primarily related to closure decisions on underperforming restaurants. In the first quarter of 2026, we wrote down lease-related assets for ten restaurants. We permanently closed 20 company-owned restaurants in the first quarter of 2026 and we anticipate closing an additional 10 to 15 restaurants in 2026. We continue to analyze our restaurant portfolio and expect to close certain restaurants that are either generating low or negative cash flows, approaching the expiration of their leases, in trade areas that are not as well positioned for current consumer trends and or there is a potential for a significant amount of sales transfer to nearby restaurants given strong off premise sales.

Key Measures We Use to Evaluate Our Performance

To evaluate the performance of our business, we utilize a variety of financial and performance measures. These key measures include revenue, comparable restaurant sales, average unit volumes (“AUVs”), restaurant contribution, restaurant contribution margin, EBITDA and adjusted EBITDA. Restaurant contribution, restaurant contribution margin, EBITDA and adjusted EBITDA are non-GAAP financial measures.

Revenue

Revenue includes both restaurant revenue and franchise royalties and fees. Restaurant revenue represents sales of food and beverages in company-owned restaurants. Several factors affect our restaurant revenue in any period, including the number of restaurants in operation and per-restaurant sales. Franchise royalties and fees represent royalty income and initial franchise fees. While we expect that the majority of our revenue and net income growth will be driven by company-owned restaurants, our franchise restaurants remain an important factor impacting our revenue and financial performance.

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Seasonal factors cause our revenue to fluctuate from quarter to quarter. Our revenue per restaurant is typically lower in the first and fourth quarters, due to reduced winter and holiday traffic, and is typically higher in the second and third quarters. As a result of these factors, our quarterly operating results and comparable restaurant sales may fluctuate.

Comparable Restaurant Sales

Comparable restaurant sales refer to year-over-year sales comparisons for the comparable restaurant base. We define the comparable restaurant base to include restaurants open for at least 18 full periods. This measure highlights the 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. Per-person spend can be influenced by changes in menu prices and the mix and number of items sold per person.

Measuring our comparable restaurant sales allows us to evaluate the performance of our existing restaurant base. Various factors impact comparable restaurant sales, including, but not limited to:

•introduction of new and seasonal menu items and limited time offerings;

•consumer recognition of our brand and our ability to respond to changing consumer preferences;

•overall economic trends, particularly those related to consumer spending;

•our ability to operate restaurants effectively and efficiently to meet consumer expectations;

•pricing and perceived value;

•the number of restaurant transactions, per-person spend and average check amount;

•marketing and promotional efforts;

•abnormal weather patterns;

•food safety and foodborne illness concerns;

•the impact of health pandemics;

•local and national competition;

•trade area dynamics;

•tariffs or trade restrictions; and

•opening and closing restaurants in the vicinity of other restaurant locations.

Consistent with common industry practice, we present comparable restaurant sales on a calendar-adjusted basis that aligns current year sales weeks with comparable periods in the prior year, regardless of whether they belong to the same fiscal period or not. Comparable restaurant sales is only one measure of how we evaluate our performance.

Average Unit Volumes

AUVs consist of 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.

Restaurant Contribution and Restaurant Contribution Margin

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Restaurant contribution represents restaurant revenue less restaurant operating costs which are cost of sales, labor, occupancy and other restaurant operating costs. Restaurant contribution margin represents restaurant contribution as a percentage of restaurant revenue. We expect restaurant contribution to increase in proportion to the number of new restaurants we open, our comparable restaurant sales growth and cost reduction initiatives.

We believe 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. We also use 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. Restaurant contribution and restaurant contribution margin 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.

EBITDA and Adjusted EBITDA

We define EBITDA as net income (loss) before net interest expense, provision (benefit) for income taxes and depreciation and amortization. We define adjusted EBITDA as net income (loss) before net interest expense, provision (benefit) for income taxes, depreciation and amortization, restaurant impairments, loss on disposal of assets, net lease exit costs (benefits), severance, executive transition costs, corporate transaction costs and stock-based compensation.

We believe that EBITDA and adjusted EBITDA provide clear pictures of our operating results by eliminating certain non-recurring and non-cash expenses that may vary widely from period to period and are not reflective of the underlying business performance.

The presentation of restaurant contribution, restaurant contribution margin, EBITDA and adjusted EBITDA, which may not be comparable to similarly titled financial measures used by other companies, 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 accounting principles generally accepted in the United States of America (“GAAP”). We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. We believe that they provide useful information to management and investors 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.

Results of Operations

The following table presents a reconciliation of net loss to EBITDA and adjusted EBITDA:

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
						(in thousands, unaudited)
Net loss						$	(3,417)					$	(9,057)
Depreciation and amortization						5,981						7,090
Interest expense, net						2,598						2,647
Provision for income taxes						7						23
EBITDA						$	5,169					$	703
Restaurant impairments(1)						2,660						626
Loss on disposal of assets						848						963
Lease exit benefits, net						(2,058)						(1,130)
Severance, executive transition costs and corporate transaction costs						247						452
Stock-based compensation expense						786						790
Adjusted EBITDA						$	7,652					$	2,404

_____________________

(1)Restaurant impairments in all periods presented above include amounts related to restaurants previously impaired. See Note 7, Restaurant Impairments, Closure Costs and Asset Disposals.

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The following table presents a reconciliation of loss from operations to restaurant contribution:

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
Loss from operations						$	(812)					$	(6,387)
Less: Franchising royalties and fees, and other						2,346						2,468
Plus: General and administrative						12,514						12,810
Depreciation and amortization						5,981						7,090
Pre-opening						—						151
Restaurant impairments, closure costs and asset disposals						2,734						1,291
Restaurant contribution						$	18,071					$	12,487
Restaurant contribution margin						14.9		%				10.3		%

Restaurant Openings, Closures and Relocations

The following table shows restaurants opened or closed during the periods indicated:

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
Company-Owned Restaurant Activity
Beginning of period						340						371
Openings						—						1
Closures						(20)						(3)
Restaurants at end of period						320						369
Franchise Restaurant Activity
Beginning of period						83						92
Openings						—						—
Closures						(3)						(1)
Restaurants at end of period						80						91
Total restaurants						400						460

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Statement of Operations as a Percentage of Revenue

The following table summarizes key components of our results of operations for the periods indicated as a percentage of our total revenue, except for the components of restaurant operating costs, which are expressed as a percentage of restaurant revenue.

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
						(unaudited)
Revenue:
Restaurant revenue						98.1		%				98.0		%
Franchising royalties and fees, and other						1.9		%				2.0		%
Total revenue						100.0		%				100.0		%
Costs and expenses:
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Cost of sales						25.4		%				26.6		%
Labor						30.0		%				32.5		%
Occupancy						8.5		%				9.5		%
Other restaurant operating costs						21.2		%				21.1		%
General and administrative						10.1		%				10.3		%
Depreciation and amortization						4.8		%				5.7		%
Pre-opening						—		%				0.1		%
Restaurant impairments, closure costs and asset disposals						2.2		%				1.0		%
Total costs and expenses						100.7		%				105.2		%
Loss from operations						(0.7)		%				(5.2)		%
Interest expense, net						2.1		%				2.1		%
Loss before income taxes						(2.8)		%				(7.3)		%
Provision for income taxes						—		%				—		%
Net loss						(2.8)		%				(7.3)		%

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First Quarter Ended March 31, 2026 Compared to First Quarter Ended April 1, 2025

The table below presents our unaudited operating results for the first quarters of 2026 and 2025, and the related quarter-over-quarter changes.

						Fiscal Quarter Ended												Increase / (Decrease)
						March 31, 2026						April 1, 2025						$						%
									(in thousands, unaudited)
Revenue:
Restaurant revenue						$	121,440					$	121,326					$	114					0.1		%
Franchising royalties and fees, and other						2,346						2,468						(122)						(4.9)		%
Total revenue						123,786						123,794						(8)						—		%
Costs and expenses:
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Cost of sales						30,893						32,293						(1,400)						(4.3)		%
Labor						36,410						39,396						(2,986)						(7.6)		%
Occupancy						10,354						11,494						(1,140)						(9.9)		%
Other restaurant operating costs						25,712						25,656						56						0.2		%
General and administrative						12,514						12,810						(296)						(2.3)		%
Depreciation and amortization						5,981						7,090						(1,109)						(15.6)		%
Pre-opening						—						151						(151)						(100.0)		%
Restaurant impairments, closure costs and asset disposals						2,734						1,291						1,443						111.8		%
Total costs and expenses						124,598						130,181						(5,583)						(4.3)		%
Loss from operations						(812)						(6,387)						5,575						(87.3)		%
Interest expense, net						2,598						2,647						(49)						(1.9)		%
Loss before taxes						(3,410)						(9,034)						5,624						(62.3)		%
Provision for income taxes						7						23						(16)						(69.6)		%
Net loss						$	(3,417)					$	(9,057)					$	5,640					(62.3)		%
Company-owned:
Average unit volume						$	1,492					$	1,314					$	178					13.5		%
Comparable restaurant sales						9.4		%				4.7		%

Revenue

Total revenue was flat at $123.8 million in the first quarters of 2026 and 2025. During the first quarter of 2026, significant increases in comparable restaurant sales were mostly offset by a decline in revenue related to 50 permanent company-owned closures and a decline in franchise revenue from 11 franchise restaurant closures. Average unit volumes increased 13.5% to $1.49 million in the first quarter of 2026 compared to $1.31 million in the first quarter of 2025 primarily due to increases in same store sales and the closure of underperforming restaurants. System-wide comparable restaurant sales increased 9.1% in the first quarter of 2026 compared to the same period of 2025, comprised of a 9.4% increase at company-owned restaurants and an 8.0% increase at franchise-owned restaurants.

Cost of Sales

Cost of sales decreased by 4.3%, in the first quarter of 2026 compared to the same period of 2025. As a percentage of restaurant revenue, cost of sales decreased to 25.4% in the first quarter of 2026 compared to 26.6% in first quarter of 2025, primarily due to 0.8% benefit from reduced food waste related to new menu items, a 0.6% benefit from menu price and a 0.2% benefit from lower discounts, partially offset by a 0.4% impact from a combination of menu investments and inflation.

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Labor Costs

Labor costs decreased by $3.0 million, or 7.6%, in the first quarter of 2026 compared to the same period of 2025. As a percentage of restaurant revenue, labor costs decreased to 30.0% in the first quarter of 2026 compared to 32.5% in the first quarter of 2025, primarily due to a 1.5% benefit from sales volume leverage, a 1.1% benefit from menu price and a 0.6% benefit from labor efficiencies, partially offset by a 0.7% impact from wage inflation.

Occupancy Costs

Occupancy costs decreased by $1.1 million or 9.9% in the first quarter of 2026 compared to the first quarter of 2025, primarily due to permanent restaurant closures. As a percentage of restaurant revenue, occupancy costs decreased to 8.5% in the first quarter of 2026 compared to 9.5% in the first quarter of 2025, primarily due to sales leverage.

Other Restaurant Operating Costs

Other restaurant operating costs increased by $0.1 million, or 0.2%, in the first quarter of 2026 compared to the first quarter of 2025. As a percentage of restaurant revenue, other restaurant operating costs increased to 21.2% in the first quarter of 2026 compared to 21.1% in the first quarter of 2025, primarily due to a 0.4% impact from increased marketing spend and a 0.3% impact from an increase in delivery fees from higher third-party delivery sales, mostly offset by a 0.3% benefit from sales volume leverage and a 0.3% benefit from lower repairs and maintenance costs.

General and Administrative Expense

General and administrative expense decreased by $0.3 million, or 2.3%, in the first quarter of 2026 compared to the first quarter of 2025, primarily due to decreases in wages, executive transition costs, software maintenance and consulting fees partially offset by increases in incentive pay. As a percentage of revenue, general and administrative expense decreased to 10.1% in the first quarter of 2026 from 10.3% in the first quarter of 2025.

Depreciation and Amortization

Depreciation and amortization decreased by $1.1 million, or 15.6%, in the first quarter of 2026 compared to the first quarter of 2025, primarily due to restaurant closures since the first quarter of 2025.

Restaurant Impairments, Closure Costs and Asset Disposals

Restaurant impairments, closure costs and asset disposals increased $1.4 million to $2.7 million in the first quarter of 2026 compared to $1.3 million the first quarter of 2025. We recorded fixed asset impairment on three restaurants and wrote down lease related assets on ten restaurants during the first quarter of 2026. In the first quarter of 2025, we did not record any fixed asset impairment. In the first quarter of 2025, we wrote down lease related assets on one restaurant.

Interest Expense, Net

Interest expense, net decreased slightly in the first quarter of 2026 compared to the first quarter of 2025, primarily due to lower average interest rates in the first quarter of 2026 as compared to the first quarter of 2025, partially offset by higher debt balances in 2026.

Provision for Income Taxes

The effective tax rate for the first quarter of 2026 and for the first quarter of 2025 reflect the impact of the previously recorded valuation allowance. The primary components of the provision for income tax (for both quarters) are related to state tax and the change in our valuation allowance. For the remainder of fiscal 2026, we do not anticipate material income tax expense or benefit as a result of the valuation allowance recorded. We will maintain a valuation allowance against deferred tax assets until there is sufficient evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit from income tax.

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Liquidity and Capital Resources

Summary of Cash Flows

We have historically used cash and our revolving credit facility to fund capital expenditures for new restaurant openings, reinvest in our existing restaurants, invest in infrastructure and information technology and maintain working capital. Our working capital position benefits from the fact that we generally collect cash from sales to customers the same day, or in the case of credit or debit card transactions, within several days of the related sale, and we typically have up to 30 days to pay our vendors.

We believe that we will have sufficient sources of cash to meet our liquidity needs and capital resource requirements for at least the next twelve months, through currently available cash and cash equivalents, availability under our revolving credit facility and cash flows from operations. We were in compliance with our covenants as of March 31, 2026, and expect to continue to be in compliance for at least the next twelve months.

Cash flows from operating, investing and financing activities are shown in the following table (in thousands):

						Fiscal Quarter Ended
						March 31, 2026						April 1, 2025
Net cash provided by operating activities						$	6,016					$	4,033
Net cash used in investing activities						(2,077)						(2,918)
Net cash used in financing activities						(3,760)						(868)
Net increase in cash and cash equivalents						$	179					$	247

Operating Activities

Net cash provided by operating activities was $6.0 million in the first quarter of 2026 compared to net cash provided by operating activities of $4.0 million in the first quarter of 2025. The increase in operating cash flow resulted primarily from a decrease in net loss as adjusted for non cash items including depreciation and impairments, as well as changes in working capital related to the timing of accounts payable, payroll and accrued liabilities.

Investing Activities

Net cash used in investing activities decreased $0.8 million to $2.1 million in the first quarter of 2026 from $2.9 million in the first quarter of 2025. This decrease was primarily due to decreased investment in new restaurants and restaurant technology in 2026.

Financing Activities

Net cash used in financing activities was $3.8 million in the first quarter of 2026, compared to $0.9 million in the first quarter of 2025. The increase from the first quarter of 2025 was primarily due to payments on our revolving credit facility.

Capital Resources

Material Cash Requirements. Our short-term obligations consist primarily of certain lease and other contractual commitments related to our operations, normal recurring operating expenses, working capital needs, new store development, capital improvements and maintenance of our restaurants, regular interest payments on our debt obligations and certain non-recurring expenditures.

Our long-term obligations consist primarily of certain lease and other contractual commitments related to our operations and payment of our outstanding debt obligations. We are obligated under non-cancelable leases for our restaurants, administrative offices and equipment. In addition, when we have a target for new store development this will require capital for such year, which is expected to be funded by currently available cash and cash equivalents, cash flows from operations and our revolving credit facility. Our capital expenditure requirements are primarily dependent upon the pace of our real estate development program and any resulting new restaurant openings, costs for maintenance and remodeling of our existing restaurants as well as information technology expenses and other general corporate capital expenditures. We currently do not plan to open any company-owned restaurants in 2026.

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We estimate capital expenditures will be approximately $9.5 million to $10.5 million for fiscal year 2026, including $7.0 million to $8.0 million for the remainder of the year, primarily for the reinvestment in existing restaurants and investments in technology. We expect such capital expenditures to be funded by currently available cash and cash equivalents, cash flows from operations and if necessary, undrawn capacity under our revolving credit line.

Current Resources. Our operations have not historically required significant working capital and, like many restaurant companies, we operate with negative working capital. Restaurant sales are primarily paid for in cash or by credit or debit card, and restaurant operations do not require significant inventories or receivables. In addition, we receive trade credit for the purchase of food, beverages and supplies, therefore reducing the need for incremental working capital to support growth.

Liquidity. As of March 31, 2026, we had a cash balance of $1.4 million compared to $1.3 million as of December 30, 2025. The amount available for future borrowings under our A&R Credit Agreement (defined below) was $15.2 million as of March 31, 2026. We believe that our current cash and cash equivalents, the expected cash flows from company-owned restaurant operations, the expected franchise fees and royalties and available borrowings under the revolving credit facility will be sufficient to fund our cash requirements for working capital needs and capital improvements and maintenance of existing restaurants for at least the next twelve months.

Credit Facility

On July 27, 2022, we amended and restated our Credit Agreement by entering into the Amended and Restated Credit Agreement as further amended, restated, extended, supplemented, modified and otherwise in effect from time to time, the (“A&R Credit Agreement”), with each other Loan Party (as defined in the A&R Credit Agreement) party thereto, each lender from time to time party thereto, and U.S. Bank National Association, as Administrative Agent, L/C Issuer and Swing Line Lender (each as defined in the A&R Credit Agreement). The A&R Credit Agreement matures on July 27, 2027. Among other things, the A&R Credit Agreement: (i) increased the credit facility from $100.0 million to $125.0 million; (ii) eliminated the term loan and principal amortization components of the credit facility; (iii) removed the Company’s capital expenditure covenant; (iv) enhanced flexibility for certain covenants and restrictions; and (v) lowered the spread of the Company’s cost of borrowing and transitioned from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.50% to 2.50% per annum, based upon the consolidated total lease-adjusted leverage ratio. The A&R Credit Agreement is secured by a pledge of stock of substantially all of the Company’s subsidiaries and a lien on substantially all of the personal property assets of the Company and its subsidiaries. The A&R Credit Agreement was subsequently amended on December 21, 2023.

On October 29, 2024, we amended our A&R Credit Agreement, by entering into that certain Second Amendment to Amended and Restated Credit Agreement (the “Second Amendment”). Among the modifications, the Second Amendment: (i) increased the maximum applicable rate ranges (A) with respect to SOFR loans, from 1.75% - 3.00% to 1.75% - 3.75% per annum and (B) with respect to base rate loans, from 0.75% - 2.00% to 0.75% - 2.75% per annum, in each case as determined by the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement), (ii) conditioned the use of the general restricted payment basket on satisfaction of a Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) of less than or equal to 4.00 to 1.00 and a Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) of greater than or equal to 1.25 to 1.00, (iii) restricted entry into new lease agreements so long as the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the A&R Credit Agreement is greater than or equal to 4.50 to 1.00, (iv) increased the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(a) of the A&R Credit Agreement to be no greater than (1) 5.00 to 1.00 for the fiscal quarters ending March 31, 2026 and June 30, 2026, (2) 4.75 to 1.00 for the fiscal quarters ending September 29, 2026 and December 29, 2026 and (3) 4.50 to 1.00 for the fiscal quarter ended March 30, 2027 and thereafter and (v) amended the Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) in Section 7.11(b) of the A&R Credit Agreement to be no less than (1) 1.15 to 1.00 for the fiscal quarters ending December 30, 2025 and March 31, 2026 and (2) 1.25 to 1.00 for the fiscal quarter ending June 30, 2026 and thereafter.

As of March 31, 2026, we had $106.8 million of indebtedness (excluding $1.2 million of unamortized debt issuance costs) and $3.0 million of letters of credit outstanding under our A&R Credit Agreement.

Off-Balance Sheet Arrangements

We had no off-balance sheet arrangements or obligations as of March 31, 2026.

Critical Accounting Policies and Estimates

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Our condensed consolidated financial statements and accompanying notes are prepared in accordance with GAAP. Preparing consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. These estimates and assumptions are affected by the application of our accounting policies. Our significant accounting policies are described in our Annual Report on Form 10-K for the year ended December 30, 2025. Critical accounting estimates are those that require application of management’s most difficult, subjective or complex judgments, often as a result of matters that are inherently uncertain and may change in subsequent periods. While we apply our judgment based on assumptions believed to be reasonable under the circumstances, actual results could vary from these assumptions. It is possible that materially different amounts would be reported using different assumptions. Our critical accounting estimates are identified and described in our annual consolidated financial statements and the related notes included in our Annual Report on Form 10-K for our fiscal year ended December 30, 2025.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

We are exposed to market risk from changes in interest rates on outstanding debt. Our exposure to interest rate fluctuations is limited to our outstanding bank debt, which bears interest at variable rates. As of March 31, 2026, we had $106.8 million of outstanding borrowings under our A&R Credit Agreement, with an average interest rate during the first quarter of 2026 of 8.0%, compared to 8.7% during the first quarter of 2025. An increase or decrease of 1.0% in the effective interest rate applied on these loans would have resulted in a pre-tax interest expense fluctuation of approximately $1.1 million on an annualized basis.

Commodity Price Risk

We purchase certain products that are affected by commodity prices and are, therefore, subject to price volatility caused by weather, market conditions, trade tariffs and other factors that are not considered predictable or within our control. Although these products are subject to changes in commodity prices, certain purchasing contracts or pricing arrangements contain risk management techniques designed to minimize price volatility. We use these types of purchasing techniques to control costs as an alternative to directly managing financial instruments to hedge commodity prices. In many cases, we believe we may be able to address material commodity cost increases by adjusting our menu pricing, but multiple price increases over a short period of time may negatively affect customer behavior, as we observed in 2023. We have evaluated and will continue to evaluate the impact of import laws and tariffs (including any refunds) on our operations as some of our food items are imported from India, Mexico and other countries. As of March 31, 2026, there was no material impact on our business, financial condition, results of operations or cash flows. However, tariffs continue to change and we expect tariffs may continue to impact our operations in certain areas, such as food and beverage costs, construction and equipment costs and other restaurant operating costs, into 2026. We will continue to utilize fixed price contracts for certain key items to mitigate risk. However, increases in commodity prices, without adjustments to our menu prices, have and could continue to increase restaurant operating costs as a percentage of restaurant revenue.

Inflation

The primary inflationary factors affecting our operations are food costs, labor costs, energy costs and materials and labor used in the construction of new restaurants. There is also uncertainty around tariffs and the potential impacts on our food costs. Additionally, many of our leases require us to pay taxes, maintenance, repairs, insurance and utilities, all of which are generally subject to inflationary increases. We anticipate inflation may continue to affect our results in the near future.

Item 4. Controls and Procedures

Our management carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2026, pursuant to Rule 13a-15 under the Exchange Act. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2026 to provide reasonable assurance that information we are required to disclose in

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reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

Item 1. Legal Proceedings

We are currently not a party to any material legal proceedings. From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Regardless of outcome, litigation can have an adverse impact on us due to defense and settlement costs, diversion of management resources, negative publicity, reputational harm and other factors, and there can be no assurances that favorable outcomes will be obtained.

Item 1A. Risk Factors

A description of the risk factors associated with our business is contained in the “Risk Factors” section of our Annual Report on Form 10-K for our fiscal year ended December 30, 2025. There have been no material changes to our Risk Factors as previously reported in our Annual Report on Form 10-K for our fiscal year ended December 30, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Director and Executive Officer Trading

During the quarter ended March 31, 2026, no director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K).

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Item 6. Exhibit Index

Exhibit Number						Description of Exhibit
31.1						Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2						Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1						Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104.0						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*Indicates management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NOODLES & COMPANY
By:			/s/  MIKE HYNES
			Mike Hynes Chief Financial Officer (principal financial officer and duly authorized signatory for the registrant)
Date			May 7, 2026

29

FAQ

How did Noodles & Company (NDLS) perform financially in Q1 2026?

Noodles & Company reported flat revenue of $123.8 million, but significantly reduced its net loss to $3.4 million from $9.1 million a year earlier. Improved restaurant-level margins and higher comparable sales drove better profitability despite operating fewer restaurants.

What were Noodles & Company’s comparable restaurant sales in Q1 2026?

System-wide comparable restaurant sales increased 9.1% in Q1 2026. Company-owned locations grew 9.4% and franchise restaurants rose 8.0%. These gains reflected a refreshed menu, successful limited-time offerings and sales transfer from underperforming restaurants that were permanently closed.

How many restaurants does Noodles & Company operate after Q1 2026 closures?

As of March 31, 2026, Noodles & Company operated 400 restaurants, including 320 company-owned and 80 franchise locations. The company closed 20 company-owned and 3 franchise restaurants during the quarter and expects to close an additional 10–15 in 2026.

What is Noodles & Company’s debt and cash position as of March 31, 2026?

At March 31, 2026, Noodles & Company had $106.8 million of indebtedness and $3.0 million of letters of credit outstanding under its credit facility, with cash on hand of $1.4 million. The company stated it was in compliance with all financial covenants.

What is the impact of Noodles & Company’s 1-for-8 reverse stock split?

The 1-for-8 reverse stock split, effective February 18, 2026, reduced the number of outstanding common shares while keeping total equity value unchanged. All share and per-share data, including the $0.58 Q1 2026 loss per share, have been retroactively adjusted to reflect the new share count.

Is Noodles & Company undergoing a strategic review in 2026?

Yes. Noodles & Company’s board began a strategic review in September 2025 that remains ongoing. The process may consider refinancing existing debt, refranchising, selling all or part of the business, or other strategic or financial transactions aimed at maximizing stockholder value.

How did restaurant margins and adjusted EBITDA change for Noodles & Company?

Restaurant contribution margin improved to 14.9% in Q1 2026 from 10.3% a year earlier. Adjusted EBITDA rose to $7.7 million from $2.4 million, supported by lower cost of sales, labor efficiencies, occupancy leverage from closures, and disciplined general and administrative spending.