Noodles & Company (NASDAQ:NDLS) Announces Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Noodles & Company (NASDAQ:NDLS) issued its earnings results on Friday. The restaurant operator reported ($0.04) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.14) by $0.10, FiscalAI reports. The firm had revenue of $120.87 million during the quarter, compared to analyst estimates of $117.30 million.

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

• Third-quarter comparable sales rose 9.5% system-wide, including 10.7% at company-owned restaurants, with company traffic up 7.8%. Restaurant contribution margin expanded 350 basis points to 16.7%, and adjusted EBITDA increased 34% to $8.7 million.
• The company lowered the top end of its full-year revenue outlook, citing the timing of restaurant closures; it now expects $485 million–$495 million in revenue and plans to close 34–36 company-owned restaurants in 2026. Management estimates closures contributed about 300 basis points to Q3 company comps through sales transferring to nearby locations, and expects another 10–15 closures in 2027.
• Ramen became a permanent menu category in October and achieved a double-digit product mix; October comparable sales grew 5.5% despite lapping an 8% gain a year earlier. Management plans to keep the platform fresh with rotating ramen offerings and said the current lineup has not hurt average check.
• The company expects 2026 adjusted EBITDA of $35 million–$37 million and positive free cash flow, with debt projected to fall by about $10 million to roughly $100 million. However, it ended Q3 with $1.5 million of available cash and $101 million of debt; its credit facility maturity was extended to November 2027.

Noodles & Company Trading Down 11.2%

NASDAQ:NDLS traded down $1.53 during trading hours on Friday, hitting $12.21. 99,573 shares of the stock were exchanged, compared to its average volume of 57,775. The firm’s fifty day moving average price is $13.80 and its 200 day moving average price is $11.61. The company has a market cap of $72.92 million, a P/E ratio of -3.05 and a beta of 1.33. Noodles & Company has a 52-week low of $3.57 and a 52-week high of $19.00.

Analysts Set New Price Targets

NDLS has been the topic of a number of research analyst reports. Wall Street Zen raised shares of Noodles & Company from a “hold” rating to a “buy” rating in a research report on Saturday, August 1st. Zacks Research raised shares of Noodles & Company to a “hold” rating in a research note on Friday, October 2nd. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Noodles & Company in a research note on Friday, October 2nd. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce”.

About Noodles & Company

Noodles & Company is a fast-casual restaurant company headquartered in Broomfield, Colorado. Founded in 1995, the company operates restaurants serving dishes inspired by noodle and pasta traditions from around the world, with a menu designed to offer customizable meals in a casual setting. Its menu includes noodle-based entrées such as Wisconsin Mac & Cheese, Japanese Pan Noodles, Pad Thai and spaghetti, along with salads, soups, desserts and beverages. The company also offers options intended to accommodate various dietary preferences, including vegetarian and gluten-sensitive choices, where available.