Less than two months after launching a sweeping menu overhaul, Noodles & Company is already beginning to see the results.
Revenue rose 2 percent to $123.8 million in Q1. Systemwide same-store sales increased 4.4 percent, including a 4.7 percent gain at company-owned restaurants and a 2.9 percent uptick at franchised locations. Company-owned comp traffic grew 1.8 percent, with average check climbing 2.9 percent, partially driven by 1.3 percent effective pricing during the period.
CEO Drew Madsen credited the performance to a few key drivers: the addition of three new menu items last fall, a shift in the timing of the Easter holiday, and most notably, the brand’s new menu rollout in mid-March. He said increased marketing and rising brand awareness also played a critical role.
The momentum has continued into Q2. Same-store sales from mid-March through April were up approximately 5 percent, even as the brand faced its toughest monthly comparison of the year.
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Both the first quarter and April marked a notable acceleration from Q4, when traffic dipped 0.1 percent and same-store sales increased just 0.5 percent. Madsen called the sustained improvement a sign that the company’s three-pronged strategy—focused on operations, menu, and brand relevance—is taking hold, even amid a challenging consumer environment.
On the operations front, the company’s top priority has been preparing restaurants to launch the new menu. That meant rolling out a four-week training program that started with regional directors and extended to all hourly roles. New training modules were created for every position. For guest-facing employees, the emphasis was on building menu knowledge and suggestive selling skills. For culinary team members, it was about hands-on prep and clear step-by-step instructions for each dish.
The second major focus has been driving guest excitement through a mix of limited-time offers and major changes to the menu. In January, the brand brought back its Steak Stroganoff, which Madsen said performed well and is expected to remain a strong seasonal LTO in future years.
But the centerpiece, of course, is the fully reimagined menu. The transformation began last October with the launch of Lemon Garlic Shrimp Scampi, Crispy Chicken Bacon Alfredo, and Chipotle Chicken Cavatappi. Then on March 12, the brand added five entirely new dishes and refreshed four existing fan favorites. The new additions were designed to fill key gaps, offering lighter fare and more adventurous flavors. They include Pulled Pork Barbecue Mac and Cheese, Garlic Bacon Crunch Mac and Cheese, Buffalo Chicken Ranch Mac and Cheese, Cajun Shrimp Fettuccine, and Green Goddess Chicken Cobb Salad. Meanwhile, popular classics were updated with richer sauces, more vegetables, and upgraded finishes. Among the reimagined items are Basil Pesto Cavatappi, Rigatoni Rosa, Creamy Cheddar Mac and Cheese, and Chicken Caesar Salad. Even the items that didn’t change received some minor upgrades, such as better-quality cheese and a switch from sliced roma tomatoes to roasted cherry tomatoes.
“In total, nearly two-thirds of our menu is new or improved,” Madsen said. “We believe this is the most comprehensive menu transformation in our nearly 30-year history.”
Beyond the food itself, Noodles also swapped its pandemic-era black plastic bowls for new white ceramic tableware and revamped its digital menu boards to feature a more modern, video-forward design that spotlights the updated lineup.
Alongside its operational and culinary efforts, Noodles has been working to redefine its brand and boost relevance through new messaging and marketing. While the brand has long enjoyed high awareness, Madsen said that hasn’t historically translated into strong traffic or sales.
“We need to give current and potential new customers a reason to relate to us,” he said. “We need to tell them why Noodles & Company is the best choice to satisfy their comfort food cravings. We’ve been perfecting the art of noodles for 30 years, and to our knowledge, we are the only chain of scale to offer a menu devoted entirely to noodles.”
That story is now being told through a new “We Know Noodles” campaign, including two new commercials.
“One focuses on the enduring love consumers of all ages have for Noodles and lets them know we have a big new menu they will be excited to try,” Madsen said. “A second commercial focuses specifically on our new mac and cheese dishes and how we do mac and cheese better than anyone else.”
The ads tested in the top quartile of all competitive campaigns evaluated by the Kantar Agency, with strong potential to drive both traffic and brand perception. Noodles expanded its paid media investment and ventured into new awareness-driving channels like digital out-of-home, digital audio, and Pinterest. It also leaned on PR, influencer campaigns, and its loyalty program to amplify the message through exclusive offers and targeted communications.
The early response has been overwhelmingly positive. Since the March relaunch, Noodles has recorded double-digit growth in brand awareness, branded search, and app sessions across new and returning users. Digital engagement metrics, including video completion rates, are exceeding expectations. Loyalty signups and transactions have risen sharply, too.
Between April 12–25, loyalty members were given 14 days of exclusive offers to “taste tour” the new menu. The promotion more than doubled transaction expectations.
In-store traffic and first-party digital orders have also picked up, which Madsen attributed in part to the company’s increased investment in broader-reach media that is helping attract both new and lapsed users.
“There is no question we will continue to learn, to innovate, and improve going forward,” he said. “But there’s also no question that our business foundation has improved dramatically in the last few months.”
Even as the turnaround gains traction, the company is still moving ahead with previously announced plans to shutter underperforming stores. Noodles expects to close 13 to 17 locations this year—sites that have consistently missed performance targets and contributed to roughly $2 million in losses, according to CFO Michael Hynes.
In Q1, the company opened one new store and closed three company-owned restaurants along with one franchised unit. As of the end of the quarter, Noodles operated 460 total locations, including 369 company-owned and 91 franchised. Two corporate units are slated to open in 2025, with one already opened in January and the other expected to debut in June.
