Popular Fast Food Chain to Close Dozens of Locations: What to Know
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Noodles & Company is set to close up to 32 of its restaurants across the United States by the end of 2025, the restaurant chain announced on Wednesday.
The Colorado-based chain said in its 2025 second-quarter financial results that it will shutter between 28 and 32 company-owned restaurants this year and will open two sites.
It comes as the company reported nationwide comparable restaurant sales growth, but a net loss and tighter liquidity.
Newsweek reached out to Noodles & Company for comment via email outside of regular working hours.
Why It Matters
The expected 2025 closures represent around a 7 percent reduction in the company's footprint. The chain, which has been running since 1995, has around 400 restaurants across the U.S., according to the company.
Several other American restaurant chains, including Denny's, Applebee's, TGI Fridays and Red Lobster, have also closed dozens of branches or filed for bankruptcy within the last year.
Stock image of pasta.
Stock image of pasta.
GDA/AP
What To Know
Noodles & Company reported on Wednesday that comparable restaurant sales increased 1.5 percent overall in the second quarter, including a 1.5 percent increase at company-owned restaurants and a 1.6 percent increase at franchised sites.
But total revenue decreased in the second quarter by 0.7 percent to $127.4 million. Net losses also stood at $17.6 million, compared to a loss of $13.6 million in the second quarter of 2024.
As of July 1, the company had $2.3 million in cash and cash equivalents and outstanding debt of $108.3 million.
In the second quarter, the company closed six company-owned restaurants and two franchise restaurants, but opened one new company-owned site.
The restaurant closures come amid an attempted turnaround at the company, which included an overhaul of its menu in March.
What People Are Saying
Drew Madsen, Noodles & Company chief executive officer, said in a statement: "We are encouraged to have delivered positive comparable restaurant sales of 1.5 percent in the second quarter despite a challenging consumer environment that has led to heightened discounting and promotional activity across the industry. Our sales and traffic moderated after the initial successful rollout of our new menu due to the strong value-conscious climate as well as slower guest adoption of the upgrades made to some of our historic menu items.
"We have been moving decisively to address these factors, particularly around guest value perception. Our new Delicious Duos value-focused platform, that launched at the beginning of August, is off to a great start. Comparable restaurant sales have increased to an average of positive five percent over the past two weeks, demonstrating that our value-focused initiatives are resonating with guests."
Mike Hynes, Noodles & Company chief financial officer, said in a conference call on Wednesday, according to Restaurant Business Magazine: "We're very pleased with the results from closing under-performing restaurants. The closures have removed restaurants with negative cash flow from our system, and post closure, we've seen nearby Noodles restaurants experience an increase in sales and profits."
What Happens Next
Madsen is stepping down as the company's CEO this month and will be succeeded by Joe Christina, who will oversee the ongoing restaurant closures and openings this year.
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