Noodles & Company (NASDAQ:NDLS) shares advanced 5.02% in US premarket trading on Friday after the restaurant chain reported third-quarter 2026 financial results that exceeded analysts’ earnings and revenue expectations, alongside full-year guidance that indicated continued comparable restaurant sales growth.
The company reported a narrower adjusted loss than anticipated, while revenue surpassed consensus estimates despite declining slightly compared with the corresponding period last year.
The results also showed higher comparable restaurant sales, an improvement in restaurant contribution margins and an increase in adjusted EBITDA.
Noodles & Company reported an adjusted loss of $0.04 per share for the third quarter, compared with analysts’ consensus expectations of a $0.14 loss per share.
Quarterly revenue reached $120.9 million, exceeding Wall Street forecasts of approximately $117.3 million.
However, revenue declined 1.0% from the $122.1 million reported during the third quarter of 2025.
The decrease in total revenue occurred despite an increase in comparable restaurant sales, reflecting differences between sales performance at existing locations and the company’s overall restaurant operations.
The earnings and revenue figures provided additional information about the company’s operating performance as it continued implementing changes across its restaurant network.
Noodles & Company reported system-wide comparable restaurant sales growth of 9.5% during the third quarter.
Comparable sales at company-owned restaurants increased 10.7%, while franchised locations recorded growth of 4.9%.
The figures reflected higher sales at restaurants included in the company’s comparable sales base, even as total quarterly revenue declined from the previous year.
Joe Christina, President and Chief Executive Officer of Noodles & Company, commented on the company’s performance.
“We are very excited that our third quarter performance continued our strong sales momentum and margin expansion, underscoring the sustainability of our growth and the impact of the improvements we have made across the business,” Christina said.
The comparable sales figures were among the principal measures highlighted in the company’s quarterly results.
Noodles & Company reported a restaurant contribution margin of 16.7% for the third quarter, compared with 13.2% in the corresponding period of 2025.
The increase represented an improvement of 350 basis points.
Restaurant contribution margin measures the profitability of restaurant operations before certain corporate and other expenses.
Adjusted EBITDA increased 34.3% to $8.7 million, compared with $6.5 million a year earlier.
The company also reported a narrower net loss of $2.1 million, equivalent to $0.36 per diluted share.
This compared with a net loss of $9.2 million, or $1.58 per diluted share, in the third quarter of 2025.
The changes reflected an improvement in reported operating profitability, although the company remained loss-making on a net income basis.
Noodles & Company provided full-year 2026 revenue guidance of between $485 million and $495 million.
The midpoint of the range, $490 million, was slightly above analysts’ consensus forecast of $488.6 million.
The company also projected system-wide comparable restaurant sales growth of 9.0% to 10.0% for the full fiscal year.
The outlook followed the 9.5% comparable sales increase recorded during the third quarter.
In addition, Noodles & Company forecast full-year adjusted EBITDA of between $35 million and $37 million.
The guidance provides benchmarks for assessing the company’s financial performance during the remainder of fiscal 2026.
Noodles & Company expects to close between 34 and 36 company-owned restaurants during fiscal 2026.
The company also anticipates the closure of seven to eight franchised restaurants, while planning to open one new franchise location.
The planned closures indicate a reduction in the company’s restaurant network during the year.
Changes in restaurant count can affect total reported revenue, even when comparable sales at continuing locations increase.
The company’s quarterly results showed this distinction, with system-wide comparable restaurant sales rising 9.5% while total revenue declined 1.0%.
The planned changes to the restaurant network will therefore remain relevant to assessments of the company’s future revenue and operating performance.
Noodles & Company’s premarket share price increase followed quarterly earnings and revenue that exceeded analysts’ expectations, together with improved restaurant contribution margins and higher adjusted EBITDA.
Investors will be monitoring whether the company maintains comparable restaurant sales growth within its projected full-year range of 9.0% to 10.0%.
The implementation of planned restaurant closures and their effect on total revenue will also be relevant, particularly as the company continues adjusting its network of company-owned and franchised locations.
Further attention will focus on whether Noodles & Company achieves its full-year revenue guidance of $485 million to $495 million and adjusted EBITDA forecast of $35 million to $37 million.
The third-quarter results showed improved profitability measures and increased sales at comparable restaurants, while the company’s annual guidance established expectations for the remainder of 2026.
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