Noodles & Company Q1 Comps Rise 9.1%, Adj. EBITDA Up 218%
NDLS•Company reported flat Q1 revenue of $123.8M while system-wide comparable sales rose 9.1%, narrowing net loss to $3.4M and boosting adjusted EBITDA 218% to $7.7M. Management raised full-year revenue outlook to $483M-$498M and adjusted EBITDA guidance to $32.5M-$37.5M based on strong momentum.
1. First Quarter Financial Performance
Total revenue held at $123.8M for Q1 2026 while system-wide comparable restaurant sales climbed 9.1%, including a 9.4% increase at company-owned locations and an 8.0% lift at franchised sites. Net loss narrowed to $3.4M versus $9.1M in the prior year, and adjusted EBITDA jumped 218% to $7.7M, driving operating margin improvement to (0.7)% from (5.2)%.
2. Raised Full-Year Outlook
Based on first quarter results and sustained comparable sales growth of over 9% into April, management has raised full-year revenue guidance to $483M-$498M and adjusted EBITDA targets to $32.5M-$37.5M. The company expects restaurant level contribution margins of 15.5%-17.0%, general and administrative expenses of $50M-$53M, and capital expenditures of $9.5M-$10.5M.
3. Cost Management and Strategic Initiatives
The portfolio optimization initiative led to the closure of 20 underperforming company-owned restaurants, with sales transferring to nearby locations due to a high mix of off-premise orders. Liquidity stands at $1.4M in cash, $15.2M available under the revolver, and $106.8M of outstanding debt, while a board-level strategic review continues on potential refinancing, refranchising, or sale alternatives.
