--- title: "Noodles & Company's turnaround explained: They're running restaurants better" url: https://burnaze.com/article/74134c4d-f4d8-40a0-bb42-f2258a492de0 source: "Restaurant Business" original_url: https://restaurantbusinessonline.com/financing/noodles-companys-turnaround-explained-theyre-running-restaurants-better category: "Fast casual" industry: "Restaurants" segment: "Fast casual" published: 2026-05-07T23:14:44.000Z modified: 2026-10-31T14:57:08.628Z image: https://cdn.informaconnect.com/platform/files/public/2026-05/background/NoodlesDuo.jpg?VersionId=vJ5qFfKZd54TTUzt24eCt755lyNU3G7d --- # Noodles & Company's turnaround explained: They're running restaurants better **TL;DR:** Noodles & Company has seen a turnaround with same-store sales increasing 9.1% in the first quarter, attributed to improved operations, marketing, and menu overhaul. The company has shuttered close to 60 underperforming restaurants since 2025 and plans to close another 10 to 15 in 2026. *originally published in Restaurant Business on 2026-05-07. [Read the original](https://restaurantbusinessonline.com/financing/noodles-companys-turnaround-explained-theyre-running-restaurants-better).* ## Key facts - Noodles & Company same-store sales up 9.1% - Traffic increased by 4.8% - Restaurant-level margins grew by 460 basis points ## Story Noodles & Company has shuttered close to 60 underperforming restaurants since the beginning of 2025, and that helped boost results for the fast-casual chain in the first quarter. But that wasn’t the only reason things are looking up for Noodles. Same-store sales were up 9.1% systemwide in the March 31-ended quarter, on top of a 4.4% increase a year ago. Traffic was up 4.8%. Considering the struggles of fast-casual brands last year and into 2026, those are impressive results. ## Turnaround progress But CEO Joe Christina is adamant that the comparable sales increase—including a rise of 9.4% among company units and 8% among franchised locations—wasn’t just about the closures. In fact, he said the closed units likely contributed only about 250 basis points to the same-store sales climb in the first quarter. The rest is because the turnaround is working, he said. “Put simply, we are operating better restaurants today than we were a year ago,” said Christina on Wednesday after reporting results. Operations have improved, he said. The chain’s marketing has been more disciplined and is connecting with consumers. And Noodles’ menu overhaul has brought back lapsed customers and new trial. Guest satisfaction scores have improved by 10% over the past six months through all channels, he added. “What gives me confidence in the sustainability of our results is that our progress is driven not by a single initiative or unlock,” he said. “It is a result of a focused, disciplined approach to executing the fundamentals of our business, and doing the small things right, every day, with those small improvements adding up to meaningful wins.” That momentum appears to be continuing into the second quarter. Christina said same-store sales in April reached 10% at company locations. To date, the chain has seen positive same-store sales for the last 16 months consecutively. Restaurant-level margins in the first quarter grew by 460 basis points to 14.9%, compared with 10.3% a year ago. New guest purchases have increased 36% year over year, Christina said, and loyalty membership signups grew 33% during the quarter. During the first quarter, Noodles launched a program called Boost Week Offer, in which loyalty members can get two culinary classics for $12. Christina described it as a “time-bound activation” designed to drive immediate, profitable traffic during key periods, and it’s an offer the chain plans to offer every quarter going forward. ## Portfolio review But the review of the chain’s portfolio is not done. The company has said it plans to close another 10 to 15 restaurants in 2026. Another two franchised units are also expected to shutter. The closures have driven sales to nearby locations and boosted off-premise sales, which has ultimately improved unit profitability. ## Updated guidance And, as a result, Noodles upped its guidance for the year, saying it expects same-store sales growth of between 7% to 10% this year, with revenues of $483 million to $498 million. That’s a rosier outlook. Noodles earlier projected comparable sales growth between 6% and 9% for the year, and revenues between $478 million to $493 million. Meanwhile, Noodles is still considering a review of strategic alternatives to maximize stockholder value, including a refinancing of debt, refranchising or the sale of all or part of the business, along with other options. The review is ongoing, the company said, but Christina didn’t mention it during the call. The results have also given needed propulsion to Noodles’ stock price after months of flirting with delisting. On Thursday Noodles’ stock was up 6% at market close to $12 per share. *Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.* Lisa Jennings is a veteran restaurant industry reporter and editor who covers the fast-casual sector, independent restaurants and emerging chain concepts. ## Entities - QSR (sector) - marketing strategy (topic) - Restaurant Business (publication) - same store sales (topic) - Noodles & Company (company) - restaurant closures (topic) - Joe Christina (person) - menu overhaul (topic) - turnaround progress (topic) --- Originally reported by Restaurant Business (https://restaurantbusinessonline.com/financing/noodles-companys-turnaround-explained-theyre-running-restaurants-better). Summarized by Burnaze (https://burnaze.com/article/74134c4d-f4d8-40a0-bb42-f2258a492de0).