Noodles & Company (NASDAQ:NDLS) Announces Quarterly Earnings Results, Beats Expectations By $0.23 EPS

Key Points

• Noodles & Company beat quarterly expectations, reporting EPS of $0.18 versus a loss estimate of $0.05 and revenue of $127.04 million above the $119.40 million forecast.
• The company said it delivered one of its strongest public-company quarters, with restaurant-level margin rising to 17.2% and adjusted EBITDA jumping 79% to $10.8 million.
• Management raised full-year 2026 guidance for revenue, margin and adjusted EBITDA, while noting debt is expected to fall to at or below 3x adjusted EBITDA by year-end.

Noodles & Company (NASDAQ:NDLS - Get Free Report) released its quarterly earnings data on Friday. The restaurant operator reported $0.18 earnings per share for the quarter, topping the consensus estimate of ($0.05) by $0.23, FiscalAI reports. The business had revenue of $127.04 million for the quarter, compared to analyst estimates of $119.40 million.

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

• Noodles reported one of its strongest quarterly performances as a public company, with restaurant-level margin expanding more than 400 basis points year over year to 17.2% and adjusted EBITDA up 79% to $10.8 million.
• Comparable sales remained strong, with system-wide comp sales up 10.3% in Q2 and company-owned comps up 11.4%; management also said Q3-to-date company-owned comps are running about 10% higher.
• Menu innovation is gaining traction, especially Asian-inspired items like Indonesian Peanut Saute and Chili Garlic Ramen, which drove a 42% increase in Asian category mix and attracted many new guests.
• Management said its more disciplined marketing strategy is working, with digital channel comparable sales up 18% and media impressions nearly doubling on only about a 6% increase in spend.
• The company raised full-year 2026 guidance for revenue, margin, and adjusted EBITDA, and expects debt to fall to at or below 3x adjusted EBITDA by year-end through free cash flow and continued portfolio optimization.

Noodles & Company Price Performance

Shares of NDLS traded up $3.50 during trading hours on Friday, reaching $15.85. 225,484 shares of the company's stock traded hands, compared to its average volume of 62,860. Noodles & Company has a twelve month low of $3.57 and a twelve month high of $16.41. The business's fifty day simple moving average is $12.91 and its two-hundred day simple moving average is $9.28. The firm has a market capitalization of $93.38 million, a price-to-earnings ratio of -2.48 and a beta of 1.38.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on NDLS shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Noodles & Company in a research report on Monday, July 6th. Wall Street Zen upgraded Noodles & Company from a "sell" rating to a "hold" rating in a research report on Saturday, March 28th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Noodles & Company presently has an average rating of "Reduce".

Hedge Funds Weigh In On Noodles & Company

A number of institutional investors and hedge funds have recently bought and sold shares of NDLS. Goldman Sachs Group Inc. increased its stake in Noodles & Company by 331.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 110,666 shares of the restaurant operator's stock valued at $121,000 after buying an additional 84,987 shares during the period. Jane Street Group LLC bought a new position in shares of Noodles & Company in the first quarter valued at approximately $41,000. Geode Capital Management LLC boosted its holdings in shares of Noodles & Company by 7.6% in the fourth quarter. Geode Capital Management LLC now owns 389,421 shares of the restaurant operator's stock valued at $275,000 after acquiring an additional 27,384 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Noodles & Company by 34,246.2% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 49,802 shares of the restaurant operator's stock valued at $35,000 after acquiring an additional 49,657 shares in the last quarter. Finally, Renaissance Technologies LLC increased its stake in shares of Noodles & Company by 35.7% during the fourth quarter. Renaissance Technologies LLC now owns 93,500 shares of the restaurant operator's stock valued at $66,000 after acquiring an additional 24,600 shares during the period. Institutional investors own 65.67% of the company's stock.

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.

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