URGENT UPDATE: Noodles & Company has announced plans to close up to 49 restaurants by the end of 2026 as part of a strategic effort to enhance profitability and streamline operations. This decision comes amid a mixed financial quarter, highlighting the chain’s ongoing adjustments to market conditions.
CEO Joseph D. Christina stated during the company’s third-quarter earnings call that the closures are essential for the long-term health of the brand. “These closures are never easy, but they are the right ones for the long-term health of the brand,” he emphasized, indicating a focus on high-performing locations and operational efficiency.
Noodles & Company plans to shutter between 28 and 32 company-owned locations in 2025, along with 4 franchised restaurants. Just in the last quarter, the company closed 6 company-owned and 2 franchise locations.
Despite these closures, Noodles & Company is also looking to open new locations, with plans for two new company-owned restaurants in 2025. This dual strategy aims to retain approximately 30% of sales from the closed locations by transferring customers to nearby restaurants, which have shown strong off-premise revenue.
The company reported a slight revenue decrease of 0.5%, totaling $122.1 million for the third quarter of 2025. However, comparable restaurant sales increased by 4.3% at franchise locations, signaling potential growth amidst the operational changes.
Noodles & Company has faced challenges with a reported net loss of $9.2 million for the quarter, which includes $5.3 million in pre-tax restaurant impairments related to the planned closures. Analysts from Jefferies have praised the decision to close underperforming stores, viewing it as a prudent move that may ultimately enhance the company’s turnaround.
As Noodles & Company embarks on this transformative journey, the closures reflect a broader trend in the food industry where brands are adapting to shifting consumer preferences and economic pressures. The fast-food chain’s proactive approach aims to refocus its efforts and improve overall sales leverage.
The urgency of these developments cannot be understated, as the company navigates a challenging landscape while striving for recovery and sustainable growth. Stakeholders and customers alike will be watching closely as Noodles & Company implements these critical changes in the coming years.
For those invested in the future of fast-casual dining, this strategic shift serves as a reminder that even well-known brands must adapt to survive. The next steps will be crucial as Noodles & Company seeks to refine its operations and enhance customer experience.
