Noodles & Co Q3 comparable sales rises, net loss narrows on menu innovation, cost cuts

Overview

• U.S. fast-casual chain's Q3 revenue fell 1%; comparable sales rose 9.5%

• Net loss narrowed to $2.1 mln from $9.2 mln a year earlier

• Company cites improved execution, menu innovation, and cost efficiencies for margin gains

Outlook

• Noodles & Co sees 2026 revenue of $485 mln to $495 mln

• Company expects 2026 comparable restaurant sales growth of 9.0% to 10.0%

• Noodles & Co expects 2026 adjusted EBITDA of $35 mln to $37 mln

Result Drivers

• MENU INNOVATION AND EXECUTION - Co said comparable sales growth was driven by enhanced restaurant execution, new menu offerings, and focused marketing

• COST EFFICIENCIES AND STORE CLOSURES - Margin gains attributed to improved cost efficiencies and elimination of underperforming restaurants

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the restaurants & bars peer group is "buy."

• The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 611 three months ago

Reuters Recommended Reads

• Nov 10 - GEN Restaurant Group Q3 revenue falls 3% on lower restaurant sales

• Nov 12 - Restaurant operator Arcos Dorados Q3 revenue beats estimates on higher traffic, average spend

• Nov 10 - Black Rock Coffee Bar Q3 revenue rises on store expansion

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)