Noodles & Co. Class A (NDLS)

Noodles & Company's stock has been impacted by several key events in the past six months. The company reported a Q3 2025 net loss of $9.2 million, missing forecasts, although system-wide comparable restaurant sales increased by 4.0%, and Adjusted EBITDA improved by 33% year-over-year. Galloway Capital Partners acquired a 6.01% stake in Noodles & Company, leading to a rise in the stock price. The company received delisting warnings from Nasdaq in December 2024 and June 2025 for failing to maintain a minimum share price of $1. Preliminary Q4 2025 results showed a 6.6% increase in system-wide comparable sales, leading to a significant rise of 17.25% in NDLS shares. The company plans to close an additional 30 to 35 underperforming restaurants in 2026, following 42 closures in 2025.

Noodles & Company leverages menu innovation, limited offerings, and seasonal offerings to maintain customer interest throughout the year. The fast-casual restaurant industry often targets the business lunch crowd and families in the evening. Sales and traffic can be influenced by factors like severe weather and holidays.

Noodles & Company is a fast-casual restaurant chain that offers a diverse menu of international and American noodle dishes, soups, salads, sandwiches, and appetizers, operating in the fast-casual segment of the restaurant industry. Its major products include cooked-to-order noodle and pasta dishes, such as Japanese Pan Noodles and Wisconsin Mac & Cheese, with options for different proteins and a focus on clean ingredients free of artificial flavors, sweeteners, colors, and preservatives.

As of December 30, 2025, Noodles & Company operated 423 restaurants, including 340 company-owned and 83 franchised locations. The company has been strategically growing its footprint in the Southern U.S. through a franchise strategy.

Noodles & Company has focused on improving its brand reputation through menu innovation and a focus on value. The company launched a significant menu overhaul in March 2025, with two-thirds of its offerings being new or improved, which was driven by extensive research and testing to increase guest satisfaction. These efforts contributed to a 4.5% comparable sales increase in August 2025 and a 4% system-wide comparable sales increase in Q3 2025. The company has also been recognized as a top employer, ranking on Forbes Magazine's "America's Best Employers For Diversity 2023" list and being included in the Denver Business Journal's "2023 Best Places to Work".

Noodles & Company is owned by 37.17% institutional shareholders, 81.93% Noodles & Company insiders, and 0.00% retail investors. Major institutional owners include Mill Road Capital Management LLC, Nantahala Capital Management, LLC, Vanguard Group Inc, Fmr Llc, and BlackRock, Inc. Cattertonnoodles LLC is the largest individual shareholder, holding 12.40 million shares, representing 26.50% of the company.