Noodles & Co. (Nasdaq: NDLS) reported plans to close 28 to 32 underperforming company-owned restaurants by the end of this year, as part of a broader effort to streamline operations and improve profitability.
The move was revealed in the Broomfield company’s second quarter financial results released Wednesday. While system-wide comparable restaurant sales rose 1.5%, the company posted a net loss of $17.6 million for the quarter ended July 1, widening from $13.6 million a year ago.
CEO Drew Madsen acknowledged the pressures of a value-driven consumer environment and emphasized the need for swift strategic action. “We have been moving decisively to address these factors, particularly around guest value perception,” Madsen said. The company recently launched its “Delicious Duos” value platform, which has shown early promise with a 5% increase in comparable sales over the past two weeks.
The closures announcement follows six company-owned and two franchise restaurant shutdowns during the quarter, and come as the company tightens its guidance for the full year. Noodles now expects total 2025 revenue between $487 million and $495 million, with only two new company-owned restaurants opening this year.
Madsen, who is transitioning out of his CEO role, expressed optimism about the company’s future under incoming CEO Joe Christina.
As of July 1, Noodles & Co. operated 364 company-owned and 89 franchise locations.