Noodles & Company raises guidance on strong second quarter
Noodles & Company raises revenue guidance after reporting strong second quarter performance.
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Noodles & Company reported a 10.3% increase in same-store sales during the second quarter, prompting the chain to raise its revenue guidance for the year. The fast-casual brand saw significant growth in average unit volumes, though it continues to close underperforming locations as part of a strategic review.
Why It Matters
This improvement in unit economics and sales growth for franchised locations suggests a potential shift in franchisee sentiment, making territories more appealing for existing and prospective franchisees.
Noodles & Company has reported a strong second quarter, prompting the chain to raise its financial guidance for the year. Based in Broomfield, Colorado, the fast-casual chain showcased a 10.3% increase in same-store sales, marking its seventh consecutive quarter of comparable sales growth. This includes an 11.4% increase at company-owned restaurants and a 5.5% rise at franchised locations. Overall, the chain ended the quarter with a total of 318 company-owned and 78 franchised units.
Traffic at company units rose by 7.6%, while the average check increased by 3.8%. The average unit volume for company-owned restaurants surged nearly 16% to $1.57 million. Restaurant margins climbed by 440 basis points to 17.2%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased nearly 80%. Despite these positive outcomes, Noodles & Company reported a net loss of $3.9 million, a significant improvement from the previous year's loss of $17.5 million, influenced in part by impairment charges from closing four restaurants.
The chain has been focusing on optimizing its portfolio, having closed approximately 60 units since the start of 2025. CEO Joe Christina attributed the improved results to the company's ongoing turnaround efforts, stating, “The operating model we have built is working well. These results showcase that progress is happening faster than even we anticipated.” Noodles & Company plans to close an additional 30 to 35 company-owned restaurants and five franchised locations in 2026 as part of its strategy to enhance operational efficiency.
