NOODLES & Co
Noodles & Company is a U.S. restaurant operator that serves noodle-based and other globally inspired dishes through company-owned and franchised fast-casual restaurants. The business is organized around a menu of bowls, pasta, soups, salads, and related beverages sold across a multi-state restaurant footprint in the United States.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueFood and beverage sales generated at company-operated Noodles & Company restaurants.
Ongoing royalty income and initial franchise fees from franchised restaurants.
Products
Reported · share of revenue- Food and Beverage98.0 %
- Franchise2.0 %
Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
Customers are primarily U.S. consumers seeking quick-service or fast-casual meals with customizable noodle, pasta, and bowl options. The company also serves franchise operators who pay royalties and fees to use the brand and operating system. Demand is driven by dine-in, takeout, and third-party delivery occasions.
Consumers buying noodle bowls, pasta, soups, salads, and beverages for lunch or dinner.
Customers ordering through third-party delivery or off-premise channels for convenience.
Operators that run franchised restaurants and pay royalties and fees for the brand and system.
Strategy
The company’s operating strategy centers on improving restaurant-level performance through menu execution, labor efficiency, and off-premise sales. It also manages its restaurant portfolio by opening selected new units, refranchising opportunities, and closing underperforming locations. Capital is directed toward restaurant reinvestment, technology, and maintaining flexibility under its credit facility and lease obligations.
Company-owned restaurants generate most revenue, so same-store performance is central to results.
Closing underperforming units can reduce drag from weak locations and improve capital allocation.
Delivery and takeout are important channels that can expand occasion coverage and sales mix.
Restaurant development, reinvestment, and lease commitments require ongoing access to capital.
Geography
Noodles & Company operates in the United States, with restaurants spread across 31 states. Its business is concentrated in domestic company-owned restaurants, while franchised locations extend the brand into additional local markets. Geography matters because restaurant performance depends on local traffic, labor availability, lease economics, and regional consumer trends.
Risks
Noodles & Company faces execution risk from restaurant traffic, labor, commodity, and delivery-cost pressures, all of which directly affect unit economics in a restaurant model. The company also carries meaningful portfolio and balance-sheet risk because underperforming restaurants can require impairments or closures, while debt and lease obligations reduce flexibility. Strategic alternatives, listing compliance, and refinancing needs add additional uncertainty around capital structure and operating focus.
- Debt and covenant constraintsImpact: HighLikelihood: High
Indebtedness and credit facility restrictions can limit operational and financing flexibility.
Exposure: Capital structure
- Underperforming restaurant closures and impairmentsImpact: High
Low-traffic or weak trade areas can force asset write-downs and permanent closures.
Exposure: Company-owned restaurant portfolio
- Labor cost inflationImpact: High
Restaurants are labor-intensive, so wage pressure directly affects operating costs.
Exposure: Restaurant operations
- Food, delivery, and supply chain cost pressureImpact: High
Menu ingredients, third-party delivery fees, and imported items can raise restaurant costs.
Exposure: Cost of sales and other restaurant operating costs
- Strategic alternatives process disruptionImpact: MediumLikelihood: Medium
A review of refinancing, refranchising, or sale options can be time-consuming and distracting.
Exposure: Corporate strategy and operations
Accounting
Judgemental itemsFood and beverage sales are recognized at the time of sale, while franchise royalties and fees follow different timing.
Impact: Affects quarterly revenue mix and comparability
Restaurant leases are a major long-term obligation and influence occupancy expense and balance-sheet liabilities.
Impact: Affects occupancy costs, liabilities, and cash commitments
Underperforming restaurants can trigger fixed asset and lease-related asset write-downs.
Impact: Can materially reduce operating income in closure periods
The company notes limited expected income tax expense due to a valuation allowance.
Impact: Can keep reported tax expense low despite pre-tax losses
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Last updated: 24/09/2026