Noodles & Company reported its financial results for the first quarter of fiscal 2026, revealing total revenue of $123.8 million, a slight decrease from $123.8 million in the same period of the previous year. Restaurant revenue was $121.4 million, up marginally from $121.3 million, while franchising royalties and fees fell to $2.3 million from $2.5 million. The company experienced a net loss of $3.4 million, a significant improvement compared to a net loss of $9.1 million in the first quarter of fiscal 2025. This resulted in a loss per share of $0.58, compared to a loss of $1.58 per share in the prior year.

The company's operational metrics showed positive trends, with system-wide comparable restaurant sales increasing by 9.1%, driven by a 9.4% increase at company-owned locations and an 8.0% increase at franchise locations. Average unit volumes rose by 13.5% to $1.49 million, attributed to improved same-store sales and the closure of underperforming restaurants. However, the company permanently closed 20 company-owned restaurants during the quarter, contributing to a total of 400 restaurants system-wide, comprising 320 company-owned and 80 franchise locations.

Noodles & Company also reported a decrease in total costs and expenses, which fell to $124.6 million from $130.2 million year-over-year. Notable reductions were seen in labor costs, which decreased by 7.6% to $36.4 million, and occupancy costs, which dropped by 9.9% to $10.4 million. The company recorded $2.7 million in restaurant impairments and closure costs, up from $1.3 million in the previous year, reflecting ongoing efforts to optimize its restaurant portfolio.

Looking ahead, Noodles & Company has indicated a cautious outlook, with plans to close an additional 10 to 15 restaurants in 2026 as part of its strategy to enhance operational efficiency. The company does not plan to open any new company-owned restaurants this year. Despite the challenges posed by inflation and rising labor costs, management remains focused on improving restaurant performance and maximizing shareholder value through strategic reviews and potential refinancing options. The company expects to maintain compliance with its debt covenants and believes it has sufficient liquidity to meet its operational needs for the next twelve months.

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.

This description was generated via AI from an annual report. Updated 8 months ago.

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