Noodles & Company Comparable Sales Rise 9.5% in Q3 Despite Lower Revenue
Key Facts
Noodles & Company reported on November 13, 2026, results for the fiscal quarter ended September 29, recording a 9.5% increase in system-wide comparable restaurant sales compared with the third quarter of 2025. Sales growth came alongside a 1.0% decline in total revenue to $120.9 million, from $122.1 million a year earlier. The divergence between comparable restaurant sales and total revenue comes as the company continues to reshape its restaurant base. The company said comparable sales at company-owned restaurants rose 10.7%, while franchise restaurant sales increased 4.9%. The figures show comparable sales growth across both operating segments, with company-owned locations posting the higher rate.
Restaurant contribution margin expanded to 16.7% in the third quarter, compared with 13.2% in the same period a year earlier. Adjusted EBITDA increased 34.3% to $8.7 million, from $6.5 million a year earlier. The adjusted measure of operating profitability improved alongside comparable sales growth, despite the decline in total revenue. Net loss also narrowed to $2.1 million, or $0.36 per diluted share, compared with a loss of $9.2 million, or $1.58 per diluted share, in the third quarter of 2025. The comparison reflects year-over-year improvement in both net loss and loss per share.
The company attributed sales growth to better in-restaurant execution, menu development and marketing. It said some sales shifted to nearby locations after restaurants closed, adding to comparable sales performance. Christina said the company had reduced debt by more than $9.0 million since the start of the year, adding that this "strengthens the resilience of our financial foundation." These steps put debt reduction alongside the operating and marketing initiatives the company linked to sales growth. The gap between comparable sales growth and lower total revenue remains part of the quarter's picture, alongside the redistribution of sales after some locations closed.
According to company data as of September 29, 2026, cash and cash equivalents totaled $1.5 million, while outstanding debt was $101.0 million. The company also had $21.2 million available to borrow under its revolving credit facility. The day before announcing its results, the company amended its credit facility to extend the maturity date to November 30, 2027. The move follows the board's announcement on September 3, 2025, that it had begun a strategic alternatives review; the company said the review remains ongoing. This context brings together the facility maturity extension, debt reduction since the start of the year and the review of options initiated by the board.
The company narrowed its fiscal 2026 outlook, setting revenue at between $485 million and $495 million. It also expects comparable restaurant sales growth of between 9.0% and 10.0%, and adjusted EBITDA of between $35 million and $37 million. These ranges put the full-year outlook alongside third-quarter results, which showed comparable sales growth and improvement in margin and adjusted earnings, alongside lower total revenue. The information available here did not provide a broader range for comparison with its previous outlook. These figures will remain a reference point for assessing the company's performance through the rest of the fiscal year.
Noodles & Company expects to close between 34 and 36 company-owned restaurants during 2026, in addition to closing 7 to 8 franchised restaurants. It expects to open one new franchised restaurant during the year. The plan comes amid closures, after which the company said some sales shifted to nearby restaurants. The company had also announced that it would hold a call to discuss third-quarter results on November 13, 2026, at 8:30 a.m. Eastern time. The call takes place on the day results are announced, with the strategic alternatives review and the full-year revenue, sales and earnings outlook remaining prominent themes for the company.