Noodles & Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue decreased 1.0% to $120.9 million from $122.1 million in the third quarter of 2025.
• Net loss narrowed to $2.1 million ($0.36 per diluted share) from a net loss of $9.2 million ($1.58 per diluted share) in the prior year period.
• Operating margin improved to 0.1% from (5.2)% in the third quarter of 2025.
• Restaurant contribution margin expanded 350 basis points to 16.7% from 13.2% in the third quarter of 2025.
• Adjusted EBITDA increased 34.3% to $8.7 million from $6.5 million in the third quarter of 2025.
• Year-to-date restaurant contribution margin exceeded 16% and Adjusted EBITDA nearly doubled compared to the prior year.
• Total current assets were $19.4 million and total long-term debt was $100.2 million as of September 29, 2026.

Guidance and Future Outlook:

• The Company tightened fiscal year 2026 guidance ranges based on trends through the first three quarters.
• Full-year 2026 total revenue is expected to be $485 million to $495 million.
• Full-year 2026 comparable restaurant sales growth is projected at 9.0% to 10.0%.
• Full-year 2026 restaurant level contribution margins are expected to be 16.0% to 16.7%.
• Full-year 2026 General and administrative expenses are projected at $52 million to $54 million, including stock-based compensation of $2.5 million to $3.0 million.
• Full-year 2026 Adjusted EBITDA is expected to be $35 million to $37 million.
• Full-year 2026 capital expenditures are projected at $8.5 million to $9.5 million.
• The Company expects to close 34 to 36 company-owned restaurants and seven to eight franchised restaurants in 2026.
• One new franchise restaurant opening is expected for the full year 2026.

Business Segments and Product Lines:

• System-wide comparable restaurant sales increased 9.5%, comprised of a 10.7% increase at company-owned restaurants and a 4.9% increase at franchise restaurants.
• Company-owned average unit volume was $1,545 for the quarter ended September 29, 2026, compared to $1,341 in the same period of 2025.
• Franchise average unit volume was $1,413 for the quarter ended September 29, 2026, compared to $1,311 in the same period of 2025.
• The portfolio includes 306 company-owned restaurants and 77 franchise restaurants as of September 29, 2026.
• Sales momentum is attributed to enhanced restaurant execution, innovative menu offerings, strategic marketing, and a shift of off-premise sales to nearby locations following the closed store program.

Market and Competitive Landscape:

• The Company reported its third consecutive quarter of comparable sales growth above 9.0% and eighth consecutive quarter of positive comparable sales growth.
• Management attributes sales growth to a permanent shift of a significant portion of off-premise sales to nearby locations resulting from the closed store program.

Risks and Challenges:

• The Company is currently reviewing strategic alternatives, including refinancing indebtedness, refranchising, or sale of all or part of the business; the outcome and timing of any such transaction remain uncertain.
• Liquidity is constrained with only $1.5 million in available cash and cash equivalents as of September 29, 2026.
• The Company faces risks related to the ability to repay, refinance, or obtain new financing on acceptable terms and comply with covenants under its credit agreement.
• Forward-looking statements involve risks including economic conditions, inflation, labor costs, supply chain challenges, and the success of new restaurant initiatives.

Management Commentary and Tone:

• CEO Joe Christina expressed excitement over continued strong sales momentum and margin expansion, citing the sustainability of growth and business improvements.
• Management highlighted the conversion of sales momentum into stronger restaurant economics, noting leverage from higher AUVs, improved cost efficiencies, and the elimination of underperforming restaurants.
• The Company reduced debt by more than $9.0 million year-to-date, strengthening its financial foundation.
• Management stated its focus remains on making the brand a more compelling choice and a more profitable business through disciplined execution.

Other Key Points:

• On November 12, 2026, the Company amended its credit facility to extend the maturity date to November 30, 2027.
• Available borrowing capacity under the revolving credit facility was $21.2 million as of September 29, 2026.
• The Board of Directors initiated a strategic review on September 3, 2025, to maximize stockholder value, which remains in process.
• A 1-for-8 reverse stock split became effective on February 18, 2026, with share and per share amounts retroactively adjusted.
• The Company hosts a conference call on November 13, 2026, at 8:30 AM Eastern Time to discuss results.