Noodles & Company reported third-quarter financial results Friday morning, with system-wide comparable restaurant sales up 9.5 percent. For the fiscal quarter ended September 29, total revenue dipped 1.0 percent to $120.9 million from $122.1 million, reflecting store closures. The company narrowed its net loss to $2.1 million from $9.2 million in the prior-year period.
Comparable sales growth was 10.7 percent at company-owned restaurants and 4.9 percent across franchised locations. Restaurant contribution margin expanded 350 basis points to 16.7 percent, up from 13.2 percent in the third quarter of 2025. Adjusted EBITDA rose 34.3 percent to $8.7 million from $6.5 million in the prior-year quarter. Operating results turned positive, generating $145,000 in operating income compared with an operating loss of $6.3 million a year earlier. Diluted net loss per share improved to $0.36 from $1.58, while adjusted diluted loss per share narrowed to $0.04 from an adjusted loss of $0.82 in the third quarter of 2025.
Chief Executive Officer Joe Christina credited kitchen modernization and menu expansion for driving traffic back into dining rooms. On Friday's earnings call, Christina cited strong sales momentum and margin expansion. The chain transitioned its limited-time chili garlic ramen into permanent brothless menu additions, which management credited with driving roughly 156,000 new customer visits. Noodles & Company opened its first New Mexico restaurant in Las Cruces in September.
Management projected 34 to 36 company-owned restaurant closures alongside seven to eight franchised unit closures over the full fiscal year. Noodles & Company tightened its full-year 2026 outlook, projecting total revenue between $485 million and $495 million with full-year comparable restaurant sales growth of 9.0 percent to 10.0 percent. The company expects full-year adjusted EBITDA between $35 million and $37 million, with capital expenditures guided between $8.5 million and $9.5 million.
