Noodles & Company reported a modest increase in total revenue for the fiscal year ending December 30, 2025, reaching $495.1 million, up 0.4% from $493.3 million in the previous year. This growth was primarily driven by a 4.1% increase in system-wide comparable restaurant sales, which included a 4.3% rise for company-owned locations and a 3.2% increase for franchise restaurants. However, the company faced challenges, including the closure of 33 company-owned restaurants, which negatively impacted overall revenue. The average unit volume also saw a positive shift, increasing by 5.5% to $1.36 million.
Despite the revenue growth, Noodles & Company reported a net loss of $42.6 million for 2025, compared to a loss of $36.2 million in 2024. The increase in losses was attributed to higher costs associated with restaurant impairments, closure costs, and increased interest expenses, which rose by 30.2% to $10.9 million. The cost of sales also increased by 2.8%, reflecting ongoing volatility in commodity prices, particularly for chicken products. Labor costs decreased slightly, but overall operating expenses rose, leading to a loss from operations of $31.6 million.
In terms of strategic developments, Noodles & Company underwent a significant menu upgrade in 2025, launching eight new entrées and introducing the value-priced Delicious Duos option, which contributed to improved customer engagement. The company also initiated a strategic review process in September 2025 to explore options for maximizing shareholder value, including potential refinancing or sale of parts of the business. As of December 30, 2025, the company operated 423 restaurants across 31 states, with 340 company-owned and 83 franchise locations.
Operationally, Noodles & Company reported that approximately 59% of its sales were derived from digital ordering, highlighting a shift towards convenience in consumer preferences. The company’s loyalty program, Noodles Rewards, boasted over 7 million members, providing valuable customer data for targeted marketing efforts. However, the company anticipates closing an additional 30 to 35 company-owned restaurants in 2026, as part of its ongoing evaluation of underperforming locations.
Looking ahead, Noodles & Company has paused plans for new company-owned restaurant openings in 2026 due to increased construction costs and lower-than-expected returns on investment from recent openings. The company expects to focus on enhancing its existing restaurant portfolio and improving operational efficiencies. Despite the challenges, management remains optimistic about future growth opportunities, particularly through digital sales and menu innovation, while navigating the complexities of the current economic environment.
About NOODLES & Co
Noodles & Company is a fast-casual restaurant chain offering globally-inspired, cooked-to-order noodle, pasta, salad, and soup dishes. Serving a broad customer base across the U.S., it emphasizes menu customization, quality ingredients, and digital ordering. The company operates company-owned and franchise locations, focusing on culinary innovation, customer service, and digital engagement to deliver convenient, high-quality dining experiences.
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