Noodles ($NDLS) Reports Q4 Revenue Above Expectations; Sets Higher FY 2026 Revenue Outlook

Noodles (NASDAQ: NDLS) reported its fourth quarter 2025 financial results, with revenue surpassing analysts’ expectations and earnings per share showing a smaller loss than anticipated. Revenue increased compared to a year earlier, while the loss per share widened from the previous year.

Noodles disclosed a loss of $0.43 per share for the fourth quarter, which was better than the anticipated loss of $1.04 per share. However, this loss was greater than the $0.15 loss per share recorded a year earlier.

The company reported revenue of $122.78 million for the fourth quarter, slightly above the analysts’ estimate of $122.4 million and higher than the $121.77 million recorded in the same quarter last year.

The company’s comparable restaurant sales increased 6.6 percent system-wide in the fourth quarter, including a 7.3 percent increase for company-owned restaurants and a 3.8 percent increase for franchise restaurants.

The operating margin for the fourth quarter was (3.3) percent compared to (6.0) percent a year earlier. Restaurant contribution margin was 14.1 percent compared to 11.2 percent, and adjusted EBITDA increased to $7.6 million from $4.0 million.

For the full year 2025, total revenue increased to $495.1 million from $493.3 million a year earlier. Comparable restaurant sales rose 4.1 percent system-wide, with company-owned restaurants increasing by 4.3 percent and franchise restaurants by 3.2 percent.

The net loss for the twelve-months period was $42.6 million, or $7.36 per diluted share, compared to a net loss of $36.2 million, or $6.37 per diluted share, the previous year. Operating margin was (6.4) percent compared to (5.6) percent a year earlier. Restaurant contribution margin was 12.6 percent compared to 13.2 percent, and adjusted EBITDA was $22.5 million compared to $23.6 million.

Noodles has set its FY 2026 revenue outlook to range between $478.00 million and $493.00 million, exceeding analysts’ expectations of $471.00 million and anticipates restaurant level contribution margins of 14.7 percent to 16.0 percent and adjusted EBITDA of $30 million to $35 million.

For the first quarter of 2026, the company expects comparable restaurant sales growth of approximately 9.0 percent and adjusted EBITDA of $5.7 million to $6.3 million, more than doubling prior year results.

“We are thrilled to report that the momentum we generated in the fourth quarter with nearly 7 percent same store sales growth and a near doubling of Adjusted EBITDA has further accelerated as we entered 2026, with quarter-to-date comparable sales growth of over 9 percent,” commented, Joe Christina, President and Chief Executive Officer of Noodles & Company.