Noodles & Company (NDLS) investor relations material

Executive summary

• Achieved one of the strongest quarters since becoming public, with system-wide comparable restaurant sales up 10.3% and company-owned up 11.4%.

• Total revenue for Q2 2026 increased 0.5% year-over-year to $127.0 million, driven by strong comp sales and offset by restaurant closures.

• Net loss for Q2 2026 was $4.0 million ($0.67 per share), a significant improvement from a $17.6 million loss last year.

• Adjusted EBITDA increased 79% to $10.8 million in Q2 2026, more than doubling for the first half of the year.

• Portfolio optimization led to closure of 22 company-owned restaurants in the first half of 2026, with further closures expected.

Financial highlights

• Restaurant revenue for Q2 2026 was $124.8 million, up 0.8% year-over-year; franchise revenue declined 15.7% due to closures.

• Restaurant contribution margin rose by 440 basis points to 17.2%, the highest in five years.

• Cost of sales decreased to 24.9% of sales, labor costs fell to 29.4%, and occupancy costs dropped due to fewer company-owned restaurants.

• Company comp traffic increased 7.6%, average check rose 3.8%, and average unit volumes grew 15.9% to $1.57 million.

• Adjusted net income for Q2 2026 was $1.1 million, compared to an adjusted net loss of $5.4 million in Q2 2025.

Outlook and guidance

• Fiscal 2026 revenue guidance raised to $485–$500 million, with comparable restaurant sales growth of 8–11%, restaurant contribution margin of 16–17%, and adjusted EBITDA of $34–$38 million.

• Expect to close 30–35 company-owned and five franchise restaurants, with one new franchise opening.

• Capital expenditures for 2026 are estimated at $9–$10 million, focused on existing locations and technology.

• Year-end debt balance projected at or below three times adjusted EBITDA, targeting a $10 million reduction in debt for 2026.

• Free cash flow expected to remain positive.