Noodles & Company (NDLS) investor relations material

Executive summary

• System-wide comparable sales grew 9.1% in Q1 2026, with company-owned up 9.4% and franchise up 8.0%, marking 16 consecutive months of positive same-store sales.

• Adjusted EBITDA surged to $7.7 million from $2.4 million year-over-year, driven by operational improvements and disciplined execution.

• Net loss narrowed to $3.4 million ($0.58/share) from $9.1 million ($1.58/share) last year.

• Portfolio optimization included closing 20 underperforming company-owned restaurants in Q1, boosting average unit volumes and profitability.

• Strategic review of alternatives, including refinancing, refranchising, or sale, remains ongoing.

Financial highlights

• Total revenue was $123.8 million, flat year-over-year due to offsetting impact of restaurant closures.

• Restaurant contribution margin increased to 14.9% from 10.3% year-over-year.

• Company comp traffic increased 4.8%, average check up 4.4% (2% from pricing, rest from mix).

• Adjusted EBITDA reached $7.7 million, up from $2.4 million in Q1 2025.

• Net loss per share improved to $(0.58) from $(1.58) year-over-year.

Outlook and guidance

• Raised full-year 2026 guidance: revenue of $483–$498 million, comp sales growth of 7–10%.

• Restaurant contribution margin expected between 15.5% and 17%.

• Adjusted EBITDA guidance of $32.5–$37.5 million.

• Plan for 1–2 new franchise openings and 30–35 company-owned closures.

• 2026 capex expected at $9.5–$10.5 million.