Noodles & Company Reports Q2 Fiscal 2025 Results with Revenue of $126.4M and Increased Net Loss

Noodles & Company reported its financial results for the second quarter of fiscal year 2025, revealing a total revenue of $126.4 million, a slight decrease of 0.7% from $127.4 million in the same quarter of the previous year. The decline was primarily attributed to a reduction in sales from permanent restaurant closures, which was partially offset by an increase in comparable restaurant sales, which rose by 1.5%. The company’s restaurant revenue was $123.8 million, down from $124.7 million year-over-year, while franchising royalties and fees increased marginally to $2.7 million from $2.6 million.

In terms of profitability, Noodles & Company reported a net loss of $17.6 million for the second quarter, compared to a loss of $13.6 million in the same period last year, marking a 28.8% increase in losses. The loss per share for the quarter was $(0.38), compared to $(0.30) in the prior year. The company’s total costs and expenses rose to $141.2 million, up from $138.9 million, driven by higher costs of sales and restaurant impairments, which increased to $13.7 million from $12.1 million.

Operationally, Noodles & Company operated 453 restaurants across 31 states as of July 1, 2025, comprising 364 company-owned and 89 franchise locations. The company opened two new company-owned restaurants in the first half of 2025, completing its development plans for the year. However, it also closed nine company-owned restaurants during the same period, with plans to close an additional 19 to 23 locations by the end of the fiscal year. The company’s average unit volume increased to $1,353, reflecting a 2.3% rise from the previous year.

The company attributed its financial performance to several factors, including ongoing menu upgrades and increased marketing efforts aimed at enhancing customer engagement. However, it acknowledged that macroeconomic uncertainties and consumer sentiment continue to constrain near-term sales growth. Looking ahead, Noodles & Company plans to focus on launching new menu items, including value offerings, to attract customers and improve sales. The company also expects to manage costs effectively amid inflationary pressures and supply chain challenges, while maintaining compliance with its debt covenants.