Noodles & Company (NASDAQ:NDLS) Announces Earnings Results

Noodles & Company (NASDAQ:NDLS) issued its quarterly earnings results on Wednesday. The restaurant operator reported ($0.44) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.61) by $0.17, FiscalAI reports. The business had revenue of $123.79 million for the quarter, compared to analysts’ expectations of $121.50 million.

Here are the key takeaways from Noodles & Company’s conference call:

• System-wide sales and profitability accelerated: Q1 system-wide comp sales grew ~9.1% (company +9.4%), adjusted EBITDA more than tripled to $7.7M year‑over‑year, and company AUV rose 13.5% to $1.49M.
• Operations, marketing and menu drove demand: Improved in-restaurant execution (guest satisfaction +10% in six months), disciplined marketing, and new/limited-time menu items helped new guest purchases rise 36% and loyalty sign-ups grow 33% in the quarter.
• Portfolio optimization underway: Management closed 20 company-owned restaurants in Q1 (plans call for 30–35 closures in 2026) and says sales have meaningfully transferred to nearby units, boosting baseline AUV and restaurant-level margins.
• Guidance raised: Full‑year 2026 outlook was increased to $483M–$498M revenue and $32.5M–$37.5M adjusted EBITDA, with an expectation to be free‑cash‑flow positive and reduce debt by ~ $10M this year.
• Balance sheet and one‑time charges remain risks: Q1 net loss was $3.4M (including a $2.7M non‑cash impairment), ending cash was only $1.4M versus $106.8M of debt, although debt was modestly reduced in the quarter.

Noodles & Company Trading Up 2.9%

Shares of NDLS stock traded up $0.34 on Friday, reaching $12.34. 52,203 shares of the stock were exchanged, compared to its average volume of 75,102. The company has a market capitalization of $72.68 million, a price-to-earnings ratio of -1.93 and a beta of 1.43. The business’s 50 day moving average price is $8.17 and its 200 day moving average price is $6.55. Noodles & Company has a twelve month low of $3.57 and a twelve month high of $13.95.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Goldman Sachs Group Inc. lifted its stake in Noodles & Company by 331.0% during the first quarter. Goldman Sachs Group Inc. now owns 110,666 shares of the restaurant operator’s stock worth $121,000 after purchasing an additional 84,987 shares during the last quarter. XTX Topco Ltd increased its stake in Noodles & Company by 228.5% in the fourth quarter. XTX Topco Ltd now owns 94,746 shares of the restaurant operator’s stock valued at $67,000 after purchasing an additional 65,907 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in Noodles & Company by 34,246.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 49,802 shares of the restaurant operator’s stock worth $35,000 after purchasing an additional 49,657 shares in the last quarter. State Street Corp lifted its position in shares of Noodles & Company by 31.1% during the 4th quarter. State Street Corp now owns 181,963 shares of the restaurant operator’s stock worth $128,000 after buying an additional 43,211 shares during the last quarter. Finally, Virtu Financial LLC purchased a new stake in shares of Noodles & Company during the 4th quarter worth approximately $28,000. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Wall Street Analysts Forecast Growth

NDLS has been the topic of several recent research reports. Wall Street Zen raised shares of Noodles & Company from a “sell” rating to a “hold” rating in a research note on Saturday, March 28th. Weiss Ratings reissued a “sell (e+)” rating on shares of Noodles & Company in a research report on Thursday, January 22nd. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce”.

About Noodles & Company

Noodles & Company is an American fast-casual restaurant chain that specializes in a variety of noodle and pasta dishes inspired by global cuisines. Its menu features signature entrees such as the Wisconsin Mac & Cheese and Japanese Pan Noodles, alongside soups, salads, shareable sides and seasonal offerings. The brand emphasizes fresh ingredients, customizable meals and a quick-service format designed to accommodate dine-in, takeout and digital ordering channels.

The company was founded in 1995 by Aaron Kennedy in Boulder, Colorado, with the aim of introducing a diverse noodle-centric menu to the American market.