Noodles & Company (NASDAQ:NDLS) Issues Quarterly Earnings Results, Beats Expectations By $0.23 EPS

Noodles & Company (NASDAQ:NDLS) announced its earnings results on Friday. The restaurant operator reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.23, FiscalAI reports. The firm had revenue of $127.04 million during the quarter, compared to analysts’ expectations of $119.40 million.

Here are the key takeaways from Noodles & Company’s conference call:

• Noodles reported one of its strongest quarterly performances as a public company, with restaurant-level margin expanding more than 400 basis points year over year to 17.2% and adjusted EBITDA up 79% to $10.8 million.
• Comparable sales remained strong, with system-wide comp sales up 10.3% in Q2 and company-owned comps up 11.4%; management also said Q3-to-date company-owned comps are running about 10% higher.
• Menu innovation is gaining traction, especially Asian-inspired items like Indonesian Peanut Saute and Chili Garlic Ramen, which drove a 42% increase in Asian category mix and attracted many new guests.
• Management said its more disciplined marketing strategy is working, with digital channel comparable sales up 18% and media impressions nearly doubling on only about a 6% increase in spend.
• The company raised full-year 2026 guidance for revenue, margin, and adjusted EBITDA, and expects debt to fall to at or below 3x adjusted EBITDA by year-end through free cash flow and continued portfolio optimization.

Noodles & Company Stock Up 24.4%

Shares of NDLS opened at $15.36 on Friday. The company has a market cap of $90.47 million, a P/E ratio of -3.83 and a beta of 1.38. Noodles & Company has a fifty-two week low of $3.57 and a fifty-two week high of $16.65. The firm’s 50 day moving average price is $12.97 and its 200 day moving average price is $9.33.

Key Stories Impacting Noodles & Company

Here are the key news stories impacting Noodles & Company this week:

• Positive Sentiment: Noodles & Company reported Q2 2026 EPS of $0.18, far above the consensus estimate of a loss of $0.05, while revenue of $127.0 million also topped expectations. Earnings report and conference call
• Positive Sentiment: The company said second-quarter comparable restaurant sales increased 10.3% system-wide, a sign that traffic and sales trends improved meaningfully. Second quarter 2026 financial results
• Positive Sentiment: Noodles & Company raised its FY 2026 revenue guidance to $485 million-$500 million, above Wall Street’s prior expectations, reinforcing confidence in continued momentum. Guidance update
• Neutral Sentiment: Short-interest data showed 0 reported shares as of July 24, so the update does not provide a meaningful new signal for the stock. Short interest data
• Neutral Sentiment: An earnings call transcript and follow-up coverage from multiple outlets added to the day’s attention, but the main driver remains the strong earnings beat and raised outlook. Earnings call transcript

Hedge Funds Weigh In On Noodles & Company

Several institutional investors have recently modified their holdings of NDLS. Virtu Financial LLC purchased a new stake in shares of Noodles & Company during the fourth quarter worth $28,000. Northwestern Mutual Wealth Management Co. grew its stake in Noodles & Company by 34,246.2% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 49,802 shares of the restaurant operator’s stock worth $35,000 after purchasing an additional 49,657 shares in the last quarter. Jane Street Group LLC acquired a new position in Noodles & Company during the 1st quarter worth $41,000. Renaissance Technologies LLC increased its holdings in Noodles & Company by 35.7% during the 4th quarter. Renaissance Technologies LLC now owns 93,500 shares of the restaurant operator’s stock worth $66,000 after purchasing an additional 24,600 shares during the period. Finally, XTX Topco Ltd increased its holdings in Noodles & Company by 228.5% during the 4th quarter. XTX Topco Ltd now owns 94,746 shares of the restaurant operator’s stock worth $67,000 after purchasing an additional 65,907 shares during the period. Institutional investors and hedge funds own 65.67% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on NDLS. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Noodles & Company in a research note on Monday, July 6th. Wall Street Zen raised Noodles & Company from a “sell” rating to a “hold” rating in a research note on Saturday, March 28th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Reduce”.

Noodles & Company Company Profile

Noodles & Company is an American fast-casual restaurant chain that specializes in a variety of noodle and pasta dishes inspired by global cuisines. Its menu features signature entrees such as the Wisconsin Mac & Cheese and Japanese Pan Noodles, alongside soups, salads, shareable sides and seasonal offerings. The brand emphasizes fresh ingredients, customizable meals and a quick-service format designed to accommodate dine-in, takeout and digital ordering channels.

The company was founded in 1995 by Aaron Kennedy in Boulder, Colorado, with the aim of introducing a diverse noodle-centric menu to the American market.