Noodles & Company (NDLS) released its financial results for the third quarter ended September 29, 2026, on November 13, 2026. The company reported that total revenue for the quarter decreased 1.0% to $120.9 million, compared to $122.1 million in the prior year.
Despite the slight revenue decline, the company reported significant operational improvements. Comparable restaurant sales increased 9.5% system-wide during the quarter. This growth was driven by a 10.7% increase at company-owned restaurants and a 4.9% increase at franchise locations. This marked the company's eighth consecutive quarter of positive comparable sales growth.
On the profitability side, Noodles & Company narrowed its net loss to $2.1 million, or a loss of $0.36 per diluted share, compared to a net loss of $9.2 million, or $1.58 per diluted share, in the third quarter of 2025. Operating margin improved to 0.1% from (5.2)% in the prior year, while restaurant contribution margin expanded to 16.7% from 13.2%. Adjusted EBITDA increased 34.3% to $8.7 million.
Management highlighted that the company has reduced debt by more than $9.0 million year-to-date. As of September 29, 2026, the company had available cash and cash equivalents of $1.5 million and outstanding debt of $101.0 million. The company also amended its credit facility on November 12, 2026, extending the maturity date to November 30, 2027.
The company is currently reviewing strategic alternatives, a process initiated by its Board of Directors in September 2025. The review includes potential options such as refinancing, refranchising, or selling part of the business. Noodles & Company also provided updated guidance for fiscal year 2026, projecting total revenue between $485 million and $495 million and adjusted EBITDA between $35 million and $37 million.
