Noodles & Company’s Turnaround Gains Momentum

Full article available at NRN.

Noodles & Company's revamped menu launched in March, delivering noticeably improved food quality across the board. The momentum built with the July introduction of Delicious Duos, a value platform starting at $9.99 that paired a small entrée with a side. Same-store sales climbed from 1.6% in July to 5.5% in September, hitting 8% by October.

The strategy brought tangible value. In early October, Noodles launched Chili Garlic Ramen, a limited-time offer that hit on key drivers: craveable, high-quality food with a fresh take on global flavors and an unexpected twist on comfort food. The LTO brought in younger guests, including first-time visitors, with strong trial and repeat performance. CEO Joe Christina noted it reflected "the power of thoughtful menu evolution and flavor innovation working in tandem."

The work extended to operational improvements focused on what matters most to customers: order accuracy, speed of service, taste of food, and hospitality. Targeted training and dedicated coaching teams visited nearly 200 restaurants to address each issue head-on.

Same-store sales were up 4% for Q3, with sequential improvement from 1.6% in July to 5.5% in September. Digital sales climbed 12%, and average unit volumes increased 5.4% to $1.34 million. Restaurant contribution margin improved to 13.2%, up from 12.8% a year prior.