Noodles & Company spent the past year rebuilding its operating model, closing underperforming restaurants, boosting its menu pipeline, and changing how it reaches consumers.
The fast casual’s Q2 results prove the work is taking hold.
Systemwide same-store sales increased 10.3 percent, including an 11.4 percent jump at company-owned restaurants and 5.5 percent growth at franchised locations. Company traffic rose 7.6 percent, meaning most of the sales improvement came from more visits instead of price. Average check increased 3.8 percent, including 2.1 percent effective pricing.
The performance marked Noodles’ strongest Q2 comps growth since becoming a public company in 2013. Momentum carried into the third quarter, with company-owned same-store sales up roughly 10 percent quarter to date.
“When I step back and look at the progress we’ve made, I believe it’s clear that Noodles is back,” CEO Joe Christina said during the brand’s Q2 earnings call. “Not because of one quarter or one campaign, but because we’ve built an organization that’s consistently executing.”
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Noodles’ restaurant-level margin expanded 440 basis points year-over-year, from 12.8 percent to 17.2 percent, its highest level in five years. Adjusted EBITDA increased 79 percent to $10.8 million, versus $6 million in the prior-year period. Through the first half of 2026, the company more than doubled adjusted EBITDA compared with the same stretch last year.
Company AUV climbed 15.9 percent to $1.57 million.
Christina said same-store sales have been positive—and increasingly so—for 18 months. The chain’s sales and traffic growth also surpassed the fast-casual Black Box Index during the past year.
“We aren’t looking for one big breakthrough,” Christina said. “We’re focused on making hundreds of small improvements every day, and together, those improvements create a meaningfully better guest experience.”
At the restaurant level, Noodles continues to rely on an operating playbook introduced last year. It concentrates on hospitality, consistent execution throughout the day, stronger dinner operations, and greater accountability.
Management believes the approach is becoming ingrained in the company’s culture. Nearly three-quarters of general manager openings and approximately 70 percent of all restaurant management positions were filled through internal promotions during Q2. Hourly employee retention also improved.
Noodles closed two company-owned and two franchised restaurants during Q2. It expects to shut down 30 to 35 corporate locations and five franchised restaurants across 2026.
The brand is capturing approximately one-third of sales from closed restaurants at nearby locations, Christina said. The chain’s high off-premises mix and brand recognition have allowed sales to transfer across a wider area than management initially anticipated.
The impact added an estimated 250 to 300 basis points to second-quarter same-store sales. It also lifted AUVs and improved efficiency at the restaurants receiving those customers.
Menu innovation has become another important piece of the recovery. The chain now has a consistent restaurant-testing process and an 18-month development calendar containing potential limited-time offers and permanent additions.
Noodles leaned into its Asian menu during Q2 by bringing back Indonesian Peanut Sauté and Chili Garlic Ramen. The Asian category’s menu mix increased 42 percent during the promotion. The share of customers ordering an Asian entrée climbed from 12.5 percent before the campaign to 17.8 percent during it.
Core entrées remained strong, indicating that the returning dishes generated incremental demand instead of shifting orders from other menu items.
The customer mix was equally encouraging. About 65 percent of participating guests were new to Noodles. The other 35 percent were existing customers trying an Asian entrée for the first time.
Noodles plans to launch multiple ramen dishes in the fourth quarter and is still determining whether they will remain limited-time offers or eventually join the permanent menu.
The company also introduced Chicken Artichoke and Asparagus Rigatoni in May through a partnership with Chrissy Teigen’s Cravings brand. Christina said the collaboration helped Noodles reach a target customer demographic and expand awareness.
Mac & Cheese remains the chain’s best-known platform. Noodles supported it during the third quarter with Mac Month and an exclusive Coca-Cola partnership featuring a Fanta Vanilla Cherry Spritz developed to pair with the lineup. The beverage has gained traction among younger consumers and generated earned media and social conversation, Christina said.
The brand will introduce another limited-time dish on August 5. It will be a baked offering inspired by guest demand that performed well in testing.
Noodles also improved how it communicates its food quality. Consumer research showed that fresh preparation and ingredients are major drivers of quality and value perceptions, especially among younger diners.
That insight led to the “Made Right, Right Now” campaign, which showcases bowls being cooked to order over open sauté pans. It was the company’s strongest-performing paid-media creative of the quarter, producing its highest video completion rates and generating more website traffic and attributed purchases than other campaigns across Meta and TikTok.
Noodles nearly doubled its total media impressions year-over-year despite increasing spending by only about 6 percent. The company has placed more of its investment into creator partnerships and platforms such as TikTok, YouTube, and Pinterest.
Second-quarter digital comps increased 18 percent. Digital channels now account for roughly 60 percent of total sales, and rewards members generate about 25 percent.
Noodles plans to increase the number of Boost Weeks it runs in 2026 after leaning into the loyalty events during the second half of last year. The targeted promotions bring new and lapsed customers into the rewards program and encourage repeat visits without depending on broad discounting.
Given the stronger performance, Noodles raised its full-year outlook. It now expects $485 million to $500 million in revenue, same-store sales growth of 8 to 11 percent, restaurant contribution margin of 16 to 17 percent, and adjusted EBITDA between $34 million and $38 million. The company also expects one new franchised restaurant to open.
Noodles finished Q2 with 396 restaurants systemwide—318 corporate stores and 78 franchised units.
