Noodles & Company Reports Q3 Fiscal 2025 Results with Revenue Decline and Increased Net Loss

Noodles & Company reported its financial results for the third quarter of fiscal 2025, revealing a total revenue of $122.1 million, a slight decrease of 0.5% compared to $122.8 million in the same quarter of the previous year. The decline was primarily attributed to permanent restaurant closures, which resulted in a revenue loss of approximately $5 million. However, this was partially offset by a $3.9 million increase in company comparable restaurant sales, which rose by 4.0% year-over-year. The company’s restaurant revenue for the quarter was $119.6 million, down from $120.2 million in the prior year, while franchising royalties and fees also saw a decrease from $2.6 million to $2.5 million.

In terms of profitability, Noodles & Company reported a net loss of $9.2 million for the third quarter, compared to a loss of $6.8 million in the same period last year, marking a 35.5% increase in losses. The loss per share for the quarter was $(0.20), compared to $(0.15) in the prior year. The company’s total costs and expenses increased by 0.7% to $128.4 million, driven by higher restaurant impairments and closure costs, which rose significantly to $5.7 million from $2.2 million in the previous year. This increase reflects the company's ongoing evaluation of its restaurant portfolio, leading to the closure of underperforming locations.

Operationally, Noodles & Company had 435 restaurants system-wide as of September 30, 2025, comprising 349 company-owned and 86 franchise locations. The company opened two new company-owned restaurants during the first three quarters of 2025, completing its development plans for the year. However, it also closed 24 company-owned restaurants during the same period, with plans to close an additional six to eight locations by year-end. The company’s average unit volume increased to $1,341, a 5.4% rise from the previous year, indicating improved sales performance at existing locations.

Looking ahead, Noodles & Company is undergoing a strategic review to explore options for maximizing shareholder value, which may include refinancing existing debt or refranchising parts of the business. The company anticipates that its comparable restaurant sales will continue to grow, supported by recent menu innovations and marketing efforts. However, it also faces challenges from macroeconomic conditions, including inflation and rising labor costs, which could impact future profitability. The company remains focused on optimizing its restaurant portfolio and enhancing operational efficiencies to navigate these challenges effectively.