NoodlesNDLS +8.34%57 Operating Margin % is 1.55% as of Mar. 2026, which is 118% above its 10-year median of 0.71. 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 365 Restaurants companies, Noodles ranks worse than 72.6% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Noodles's Operating Income for the
three
months ended in Mar. 2026 was $1.9 Mil. Noodles's Revenue for the
three
months ended in Mar. 2026 was $123.8 Mil. Therefore, Noodles's Operating Margin % for the quarter that ended in Mar. 2026 was 1.55%.
The historical rank and industry rank for Noodles's Operating Margin % or its related term are showing as below:
NDLS'
s Operating Margin % Range Over the Past 10 Years
Min: -3.51 Med: 0.71 Max: 2.94
Current: 0.31
NDLS's Operating Margin % is ranked worse than 72.6% of 365
companies
in the Restaurants industry
Industry Median: 4.26
vs NDLS: 0.31
Noodles's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Noodles's Operating Income for the
three
months ended in Mar. 2026 was $1.9 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $1.5 Mil.
Warning Sign:
Noodles & Co had lost money in 58% of the time over the past 12quarters.
Noodles (NAS:NDLS) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Noodles Operating Margin % Related Terms
Noodles Operating Margin % Historical Data
* Premium members only.
The historical data trend for Noodles's Operating 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: Operating Margin % Comparison
For the Restaurants subindustry, Noodles's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Noodles's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Noodles's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Noodles's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Noodles (NDLS) has a Operating Margin % of 1.55% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Noodles and its competitors. This is 118% above median its historical median of 0.71. According to the industry distribution chart, Noodles ranks #265 out of 365 companies in the Restaurants industry, placing it in the top 72.6%.
Is Noodles' Operating Margin % too high?
Noodles' current Operating Margin % of 1.55% is 118% above median its 10-year median of 0.71. The Restaurants industry median Operating Margin % is 4.26. Noodles' value of 1.55% is 63.6% below this industry median. Based on the distribution chart, Noodles ranks #265 out of 365 companies in the Restaurants industry, which is below the industry midpoint. 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' Operating Margin % compare to THCH and BDL?
According to the Restaurants industry distribution chart, Noodles ranks #265 out of 365 companies for Operating Margin %. This places Noodles in the lower half of its industry. The industry median Operating Margin % is 4.26. Noodles' value of 1.55% is 63.6% below this benchmark. While the company's 10-year median is 0.71 vs. the industry median of 4.26, 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 Operating Margin % for a Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Noodles's current Operating Margin % of 1.55% is 63.6% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Noodles and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Noodles's current Operating Margin % is 1.55%, which is 118% above median its own 10-year median of 0.71. 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 Operating Margin % is 1.55%, which is 118% above median its 10-year median of 0.71 and 63.6% below the Restaurants industry median of 4.26. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Noodles (NDLS), the current Operating Margin % is 1.55% 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:
Operating Margin %: 1.55% (118% above median its 10-year median of 0.71)
GF Value™: $10.68 vs. price of $14.97 (40.2% above fair value)
Industry Position: 63.6% below the Restaurants median (#265 of 365)
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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