Q2 2026 Noodles & Co Earnings Call Transcript
Key Points
- Noodles & Co (NDLS) achieved one of its strongest performances since becoming a publicly traded company, with restaurant level margins expanding by over 400 basis points year over year.
- Adjusted EBITDA increased approximately 80% in the second quarter, and more than doubled in the first half of the year compared to the same period last year.
- Comparable restaurant sales have been positive for the last 18 months, significantly exceeding the fast casual Black Box index.
- The company raised its fiscal 2026 guidance for revenue, margins, and adjusted EBITDA, expecting year-end debt balance to be at or below three times 2026 adjusted EBITDA.
- Noodles & Co (NDLS) has successfully implemented a portfolio optimization plan, resulting in improved profitability and a significant transfer of sales from closed restaurants to nearby locations.
- Net loss for the second quarter was $4 million, or a loss of $0.67 per diluted share, despite improvements in other financial metrics.
- The company closed two company-owned restaurants and two franchise restaurants in the second quarter, indicating ongoing challenges in certain locations.
- Other restaurant operating costs increased by 60 basis points from the prior year, driven by higher third-party delivery fees.
- General and administrative expenses increased to $13.9 million, primarily due to an increase in incentive-based compensation.
- The company is still dealing with variability in franchise group performance, which can create disconnects with company-owned restaurant performance.
Good morning, and welcome to today's Noodles & Company's second-quarter 2026 earnings call.(Operator Instructions) As a reminder, this call is being recorded.
I would now like to introduce Noodles & Company's Chief Financial Officer, Mike Hynes. Thank you, sir. You may begin.
Thank you. And good morning, everyone. Welcome to our second-quarter 2026 earnings call. Here with me is Joe Christina, our Chief Executive Officer. I'd like to start by going over a few regulatory matters.
During the call, we may make forward-looking statements regarding future events or the future financial performance of the company. Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are only projections, and actual events or results could differ from those projections due to a number of risks and uncertainties, including those referred to in this morning's news release and the cautionary
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