Noodles & Company (NASDAQ:NDLS) Announces Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Key Points

• Beat estimates and operational rebound: Q1 EPS was ($0.44), topping expectations by $0.17, while system‑wide comps rose ~9.1%, adjusted EBITDA more than tripled to $7.7M and AUVs climbed 13.5%, prompting management to raise full‑year 2026 guidance to $483M–$498M revenue and $32.5M–$37.5M adjusted EBITDA with an aim to be free‑cash‑flow positive.
• Balance‑sheet and execution risks remain: The company reported a $3.4M net loss (including a $2.7M non‑cash impairment) and ended the quarter with only $1.4M cash against $106.8M of debt, while closing 20 restaurants in Q1 and planning 30–35 closures in 2026 even as management says sales have meaningfully transferred to nearby units.

Noodles & Company (NASDAQ:NDLS - Get Free Report) released its earnings results on Wednesday. The restaurant operator reported ($0.44) EPS for the quarter, topping the consensus estimate of ($0.61) by $0.17, FiscalAI reports.

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 Stock Performance

Shares of NASDAQ:NDLS traded up $0.13 on Wednesday, hitting $11.32. 108,435 shares of the company's stock were exchanged, compared to its average volume of 53,539. The firm's 50-day moving average is $8.03 and its 200 day moving average is $6.50. The company has a market capitalization of $66.67 million, a PE ratio of -1.53 and a beta of 1.43. Noodles & Company has a 1-year low of $3.57 and a 1-year high of $13.23.

Analyst Ratings Changes

Several research analysts recently commented on the company. Wall Street Zen raised 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 note on Thursday, January 22nd. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, Noodles & Company currently has a consensus rating of "Reduce".

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in NDLS. Virtu Financial LLC acquired a new position in shares of Noodles & Company during the 4th quarter worth about $28,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of Noodles & Company by 34,246.2% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 49,802 shares of the restaurant operator's stock worth $35,000 after acquiring an additional 49,657 shares in the last quarter. Jane Street Group LLC acquired a new position in shares of Noodles & Company during the 1st quarter worth about $41,000. Renaissance Technologies LLC boosted its position in shares of Noodles & Company by 35.7% during the 4th quarter. Renaissance Technologies LLC now owns 93,500 shares of the restaurant operator's stock worth $66,000 after acquiring an additional 24,600 shares in the last quarter. Finally, XTX Topco Ltd boosted its position in shares of Noodles & Company by 228.5% during the 4th quarter. XTX Topco Ltd now owns 94,746 shares of the restaurant operator's stock worth $67,000 after acquiring an additional 65,907 shares in the last quarter. 65.67% of the stock is owned by institutional investors and hedge funds.

Noodles & Company Company Profile

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.

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