NoodlesNDLS +8.34%57 Gross Margin % is 16.49% as of Mar. 2026, which is 7% above its 10-year median of 15.41. GuruFocus rates NDLS with a GF Score™ of 57/100 and a GF Value™ of $10.68 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 359 Restaurants companies, Noodles ranks worse than 89.69% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Noodles's Gross Profit for the
three
months ended in Mar. 2026 was $20.4 Mil. Noodles's Revenue for the
three
months ended in Mar. 2026 was $123.8 Mil. Therefore, Noodles's Gross Margin % for the quarter that ended in Mar. 2026 was 16.49%.
The historical rank and industry rank for Noodles's Gross Margin % or its related term are showing as below:
NDLS'
s Gross Margin % Range Over the Past 10 Years
Min: 13.09 Med: 15.41 Max: 17.27
Current: 15.46
During the past 13 years, the highestGross Margin % of Noodles was 17.27%. The lowest was 13.09%. And the median was 15.41%.
NDLS's Gross Margin % is ranked worse than 89.69% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs NDLS: 15.46
Noodles had a gross margin of 16.49% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Noodles was 0.30% per year.
Noodles (NAS:NDLS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Noodles had a gross margin of 16.49% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Noodles Gross Margin % Related Terms
Noodles Gross Margin % Historical Data
* Premium members only.
The historical data trend for Noodles's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NDLS vs THCH, BDL, STKS: Gross Margin % Comparison
For the Restaurants subindustry, Noodles's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Noodles Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Noodles's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Noodles's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Noodles (NDLS) has a Gross Margin % of 16.49% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Noodles and its competitors. This is near median its historical median of 15.41. Over the past decade, Noodles' Gross Margin % has ranged from 13.09 to 17.27. According to the industry distribution chart, Noodles ranks #322 out of 359 companies in the Restaurants industry, placing it in the top 89.7%.
Is Noodles' Gross Margin % too high?
Noodles' current Gross Margin % of 16.49% is near median its 10-year median of 15.41. Over the past 10 years, this metric has ranged from a low of 13.09 to a high of 17.27. The Restaurants industry median Gross Margin % is 45.71. Noodles' value of 16.49% is 63.9% below this industry median. Based on the distribution chart, Noodles ranks #322 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Noodles has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Noodles' Gross Margin % compare to THCH and BDL?
According to the Restaurants industry distribution chart, Noodles ranks #322 out of 359 companies for Gross Margin %. This places Noodles in the lower half of its industry. The industry median Gross Margin % is 45.71. Noodles' value of 16.49% is 63.9% below this benchmark. Historically, Noodles' own Gross Margin % has ranged from 13.09 to 17.27 over the past decade. While the company's 10-year median is 15.41 vs. the industry median of 45.71, Noodles has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Noodles's current Gross Margin % of 16.49% is 63.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Noodles and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Noodles's current Gross Margin % is 16.49%, which is near median its own 10-year median of 15.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Noodles stock overvalued right now?
Based on GuruFocus' analysis, Noodles (NDLS) is currently considered Significantly Overvalued. The stock's GF Value™ is $10.68, compared to a current price of $14.97 — trading 40.2% above its estimated fair value. The current Gross Margin % is 16.49%, which is near median its 10-year median of 15.41 and 63.9% below the Restaurants industry median of 45.71. Noodles' overall GF Score™ is 57/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Noodles (NDLS), the current Gross Margin % is 16.49% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Noodles (NDLS) Overvalued in 2026?
Based on GuruFocus' analysis, Noodles stock appears to be overvalued.
The current stock price of $14.97 is trading 40.2% above its estimated GF Value™ of $10.68.
GuruFocus considers Noodles to be Significantly Overvalued.
Key valuation signals for NDLS:
Gross Margin %: 16.49% (near median its 10-year median of 15.41)
GF Value™: $10.68 vs. price of $14.97 (40.2% above fair value)
Industry Position: 63.9% below the Restaurants median (#322 of 359)
No single metric tells the full story. See the NDLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Noodles & Co is a restaurant concept offering lunch and dinner within the fast-casual segment of the restaurant industry. The company's menu includes a variety of cooked-to-order dishes, including noodles and pasta, soups, salads and appetizers. The company also provides dining, pick-up and delivery services. It is focused on offering customers flavorful, cooked-to-order dishes in a warm and welcoming environment at an attractive value. It has approximately 340 company-owned restaurants and 83 franchise restaurants in 31 states.
57GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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