Noodles & Company reported second-quarter 2026 results with total revenue of $127.0 million and system-wide comparable restaurant sales up 10.3%. The company posted a net loss of $4.0 million (loss per diluted share $0.67) while adjusted EBITDA rose to $10.8 million. Management raised full-year 2026 guidance and highlighted continued comparable-sales momentum and margin improvement.

Financial Highlights

• Total revenue: $127.0 million for Q2 2026, up 0.5% from $126.4 million in Q2 2025.
• Net loss: $4.0 million for Q2 2026, or $0.67 loss per diluted share (Q2 2025 net loss $17.6 million, $3.04 loss per diluted share).
• Adjusted EBITDA: $10.8 million for Q2 2026, a 79% increase from $6.0 million in Q2 2025.
• Operating margin: (1.2)% in Q2 2026 versus (11.7)% in Q2 2025.
• Restaurant contribution margin: 17.2% in Q2 2026 versus 12.8% in Q2 2025.

Business Highlights

• Comparable restaurant sales: System-wide comps increased 10.3%, driven by an 11.4% increase at company-owned restaurants and a 5.5% increase at franchise restaurants.
• Traffic and momentum: The company reported seven consecutive fiscal quarters of positive comparable-restaurant-sales growth and continued strong traffic; quarter-to-date company-owned comps in Q3 are up ~10%.
• Portfolio optimization: Company plans to close 30–35 company-owned restaurants and five franchised restaurants in 2026 as part of portfolio optimization.
• Unit counts: 318 company-owned restaurants and 78 franchise restaurants as of June 30, 2026, reflecting ongoing refranchising and optimization activity.
• Liquidity and capital actions: As of June 30, 2026, cash and cash equivalents were $1.3 million, outstanding debt was $105.4 million, and $16.6 million was available under the revolving credit facility; management expects to use free cash flow to reduce debt toward a target at or below three times 2026 adjusted EBITDA.

Original SEC Filing: NOODLES & Co [ NDLS ] - 8-K - Jul. 24, 2026