Noodles & Co (NDLS) Q3 2026 Earnings Report

The call was strongly positive overall. Management reported broad-based comparable sales growth, higher traffic and AUVs, significant restaurant contribution margin expansion, 34% Adjusted EBITDA growth, improved net loss, debt reduction, successful menu launches, and positive early ramen results. The main challenges were the ongoing restaurant closures, a year-over-year revenue decline caused by those closures, continued net losses, higher G&A and delivery-related operating costs, limited available cash relative to debt, and a reduced top end of revenue guidance. These lowlights were outweighed by the reported operating improvements and positive outlook.

For the full year 2026, Noodles & Company guided to total revenue of $485 million-$495 million, including comp restaurant sales growth of 9%-10%; restaurant contribution margin between 16% and 16.7%; general and administrative expenses of $52 million-$54 million, inclusive of stock-based compensation expense of $2.5 million-$3 million; depreciation and amortization expense of $23 million-$24 million; interest expense of approximately $10 million; Adjusted EBITDA between $35 million and $37 million; one new franchise restaurant opening; 34-36 company-owned restaurant closures and seven to eight franchise restaurant closures; and total capital expenditures of $8.5 million-$9.5 million. The company continues to expect to be free cash flow positive in 2026, with the opportunity to reduce its debt balance by $10 million to approximately $100 million, and expects its debt balance to be below 3x Adjusted EBITDA; for 2027, Mike Hynes said there is no firm number, with best thinking right now being 10-15 closures next year.