Noodles & Company (NDLS) investor relations material

Executive summary

• System-wide comparable sales grew 6.6% in Q4 2025, with company-owned up 7.3% and franchise up 3.8%; momentum accelerated to over 9% in Q1 2026 to date.

• Profitability and margins improved significantly year-over-year, driven by disciplined execution, operational enhancements, and menu innovation.

• Restaurant portfolio optimization, including 33 closures in 2025, led to higher average unit volumes and improved margins.

• Strategic alternatives review is ongoing, with options including debt refinancing or other transactions.

• Net loss for Q4 2025 narrowed to $6.8 million, including a $5.6 million non-cash impairment charge.

Financial highlights

• Q4 2025 revenue increased 0.8% year-over-year to $122.8 million; full year revenue reached $495.1 million, up 0.4%.

• Restaurant contribution margin expanded to 14.1% in Q4 2025, up from 11.2% in Q4 2024.

• Adjusted EBITDA in Q4 2025 was $7.6 million, nearly doubling year-over-year.

• Company average unit volumes rose 9.9% to $1.44 million in Q4 2025.

• As of December 30, 2025, available cash was $1.3 million, with $110.2 million in outstanding debt.

Outlook and guidance

• Q1 2026 guidance: comp sales ~9%, adjusted EBITDA $5.7–6.3 million, more than double prior year.

• Full-year 2026 guidance: revenue $478–493 million, comp sales growth 6–9%, restaurant margin 14.7–16%.

• Adjusted EBITDA expected between $30–35 million for 2026.

• Capital expenditures projected at $9.5–10.5 million; free cash flow positive with $5–10 million debt reduction expected.

• 30–35 company-owned and 5 franchised restaurant closures anticipated in 2026; 1–2 new franchise openings.