--- title: "Noodles & Company’s Turnaround Strategy is Clicking" url: https://burnaze.com/article/b9ef0107-d7d4-4a37-a07f-f918d5eb725c source: "QSR Magazine" original_url: https://www.qsrmagazine.com/story/noodles-companys-turnaround-strategy-is-clicking/ author: "Ben Coley" category: "Fast casual" industry: "Restaurants" segment: "Fast casual" published: 2026-05-15T16:29:09.000Z modified: 2026-10-31T13:18:42.994Z image: https://www.qsrmagazine.com/wp-content/uploads/2026/05/noodlescorestaurant.jpg --- # Noodles & Company’s Turnaround Strategy is Clicking **TL;DR:** Noodles & Company reports significant growth with same-store sales up over 9 percent and adjusted EBITDA tripling in the first quarter. The company's turnaround strategy, which includes operational improvements, a more measured marketing strategy, and menu strategy evolution, is showing positive results. *By Ben Coley, originally published in QSR Magazine on 2026-05-15. [Read the original](https://www.qsrmagazine.com/story/noodles-companys-turnaround-strategy-is-clicking/).* ## Key facts - Noodles & Company saw 9% same-store sales growth in Q1 - Average unit volumes rose 13.5% to $1.49 million - Restaurant contribution margins expanded 460 basis points ## Story Noodles & Company is starting to look like a different brand. After several years of uneven performance and strategic resets, the fast casual is gaining traction through a back-to-basics strategy that leadership said is finally sticking. The company’s first quarter offered one of its clearest signals yet, with systemwide same-store sales climbing more than 9 percent and adjusted EBITDA more than tripling year-over-year. The momentum carried into April, where comps again topped 9 percent, including double-digit growth at company restaurants. Looking back even further, Noodles has seen positive same-store sales for 16 straight months. “What gives me confidence in the sustainability of our results is that our progress is driven not by a single initiative or unlock,” Christina 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.” ## Operational improvements The operational piece has arguably been the most visible shift. That improvement is showing up in the metrics that matter most to guests. Over the past six months, satisfaction scores rose 10 percent, with gains across dine-in, digital, and third-party channels. Dinner service, historically a pressure point, has become more consistent, helping stabilize traffic patterns and lift in-restaurant sales. Behind the scenes, leadership has worked to align teams around a narrower set of priorities, emphasizing accountability at the unit level. The payoff, Christina suggested, is cultural as much as operational. “We are seeing a shift in mindset across the organization, and our teams believe they can impact results. They are taking ownership,” he said. “And as we continue to reinforce strong execution, winning is becoming contagious across our teams.” That cultural shift has been combined with a more measured marketing strategy. Noodles is no longer chasing sporadic spikes in traffic. It’s building a steady dialogue with guests, anchored in its core identity. The numbers suggest the strategy is resonating. New guest active purchases jumped 36 percent in the quarter, while loyalty sign-ups increased 33 percent. The company has also tightened how it deploys marketing dollars. Real-time adjustments across paid channels are helping optimize spend, and leadership is tying brand-building more closely to traffic-driving efforts. “We are not separating traffic from brand,” Christina said. “The same work that brings guests into our restaurants is also strengthening how they think about Noodles.” Promotional tactics are evolving in tandem. A new “boost week” initiative—offering two dishes for $12 to rewards members—delivered a lift in traffic, app engagement, and customer acquisition. The company plans to repeat the activation quarterly. ## Menu strategy evolution Menu strategy is the third leg of the turnaround, and it builds on what leadership calls the most significant menu transformation in the company’s history last year. Since then, Noodles has used a balance of returning favorites, globally inspired flavors, and limited-time offers that create urgency without overcomplicating the lineup. The return of Steak Stroganoff in the first quarter is one example. “We brought it back in response to strong guest demand, and the results reinforce both the strength of our loyal guest base and our ability to attract new guests,” Christina said. Limited-time offers have also become a vehicle for pushing the brand’s global positioning. The reintroduction of Indonesian Peanut Sauté alongside Chili Garlic Ramen boosted the Asian category mix by 40 percent during the promotional window. The latest offer is Chicken Artichoke and Asparagus Rigatoni with a partnership with CRAVINGS by Chrissy Teigen, a move to connect menu innovation with cultural relevance. These traffic-driving strategies are translating into better unit economics. Average unit volumes rose 13.5 percent to $1.49 million in the quarter, and restaurant contribution margins expanded 460 basis points to 14.9 percent thanks to a mixture of sales leverage and cost discipline. Adjusted EBITDA climbed to $7.7 million. Labor as a percentage of sales dropped 250 basis points, aided by efficiency gains, and food costs benefited from reduced waste tied to the new menu. Pricing contributed modestly, with about 2 percent effective pricing in the quarter, leaving the bulk of check growth to mix and channel shifts. ## Footprint optimization Perhaps the most consequential move in the turnaround has been the company’s decision to shrink its footprint. Noodles closed 20 company-owned and three franchise locations in the quarter as part of a broader portfolio optimization effort. The strategy is designed to strengthen the remaining base. With a high mix of off-premise sales, many of the shuttered units overlapped trade areas, allowing demand to shift to nearby restaurants. “By closing underperforming restaurants in these areas, we have seen a significant transfer of their sales to nearby restaurants, which results in a higher baseline average unit volume for those go-forward restaurants,” Christina said. Hynes said roughly 250 basis points of the quarter’s comp growth came from those closures, with the majority still driven by underlying business improvement. Thirty to 35 company units will shutter in 2026, and only one to two new franchises will open. Additionally, the company reduced debt by $3.4 million in the quarter and expects to pay down about $10 million for the full year while generating positive free cash flow. Noodles is also raising its outlook. The chain now expects full-year comparable sales growth of 7 percent to 10 percent and adjusted EBITDA between $32.5 million and $37.5 million. “We are executing well in our restaurants, supporting them with disciplined marketing and delivering craveable food, creating a better guest experience that is translating into consistent performance and steady growth in both comparable sales and margins,” Christina said. In September 2025, Noodles and its board of directors began a strategic review of alternatives, including the possibility of a sale. The company said that the review is still in process. Noodles finished Q1 with 400 stores systemwide—320 company-owned and 80 franchises. ## Entities - Restaurants (sector) - QSR Magazine (publication) - marketing strategy (topic) - Ben Coley (person) - Noodles & Company (company) - same-store sales growth (topic) - turnaround strategy (topic) - operational improvements (topic) - Chrissy Teigen (person) - menu strategy evolution (topic) --- Originally reported by Ben Coley, QSR Magazine (https://www.qsrmagazine.com/story/noodles-companys-turnaround-strategy-is-clicking/). Summarized by Burnaze (https://burnaze.com/article/b9ef0107-d7d4-4a37-a07f-f918d5eb725c).