After spending the past several years eliminating underperforming restaurants, a well-known restaurant chain has confirmed another round of closures through the remainder of 2026.
Company leadership says the strategy is designed to concentrate sales at stronger-performing locations, improve profitability, and support long-term growth as restaurant operators continue to navigate higher operating costs and changing consumer dining habits.
Founded in 1995 in Denver, Colorado, Noodles & Company is a fast-casual restaurant chain known for its noodle dishes, pasta, soups, and salads. The chain currently operates nearly 400 restaurants nationwide.
Noodles & Company confirms more restaurant closures in 2026
Noodles & Company has closed 46 company-owned restaurants and 11 franchise locations since July 1, 2025, according to its second-quarter fiscal 2026 earnings report.
During the quarter alone, the chain shuttered two company-owned restaurants and two franchise locations.
Looking ahead, Noodles & Company expects to close approximately 30 to 35 company-owned restaurants and five franchised locations during fiscal 2026.
“We have and will continue to close restaurants that predominantly are in proximity to higher performing nearby restaurants,” said Noodles & Company CEO Joe Christina.
“Given our high mix of off-premise sales combined with strong brand recognition, this is resulting in a transfer of approximately a third of the sales from the closed restaurant on average, which further raises the average unit volume at the nearby restaurants, improving efficiencies and resulting margins.”
Christina added that the majority of the company’s recent sales and traffic growth has come independently of sales transferred from closed restaurants, indicating that broader operational improvements are driving performance.
As a result of the shutdowns, Noodles & Company recorded a $4.8 million non-cash impairment charge related to the reduced value of restaurants slated for closure.
Recent Noodles & Company closures are part of broader turnaround strategy
The latest round of closures is part of a multi-year effort by Noodles & Company to streamline its restaurant portfolio, improve restaurant-level economics, and strengthen its long-term financial performance.
According to the company’s investor relations website, the chain:
- 2024: Closed 13 company-owned restaurants and seven franchise locations.
- 2025: Closed 33 company-owned restaurants and nine franchise locations.
- 2026: Plans to close approximately 30 to 35 company-owned restaurants and five franchised locations by the end of the fiscal year.
The strategy reflects a broader trend across the restaurant industry, where brands are increasingly shuttering lower-performing locations to focus investment on restaurants with stronger sales, higher traffic, and better long-term growth potential.
Rising labor costs, occupancy expenses, and slower consumer spending have prompted many restaurant operators to reassess their footprints and prioritize higher-performing locations.
Why Noodles & Company is closing locations
During its second-quarter earnings call, Noodles & Company said the closures are intended to create a more profitable, resilient business while positioning the company for sustainable long-term growth.
Executives said the chain has improved the guest experience by operating restaurants more consistently and placing greater emphasis on hospitality, encouraging repeat visits, and building customer loyalty.
Here’s some of my previous coverage of restaurant closures:
- Popular breakfast chain sold, 16 locations shut down
- Popular beverage chain closing multiple locations nationwide
- Pizza chain closing up to 50 locations after years of declines
The chain has also focused on disciplined menu innovation and limited-time offerings to generate demand. During the quarter, Noodles & Company highlighted its Asian-inspired menu, which it said remains one of its most popular categories with guests.
Marketing has also become a central part of the turnaround strategy. The company said it has adopted a more integrated approach designed to increase brand awareness and attract new customers.
Its “Made Right Now” campaign was the strongest-performing creative initiative of the quarter across paid media, delivering the company’s highest video completion rates while generating more website traffic and more attributed digital and in-restaurant purchases than any previous campaign on Meta and TikTok.
Turnaround efforts are beginning to gain momentum
Noodles & Company’s strategy is starting to translate into stronger operating performance.
During the second quarter of fiscal 2026, the company reported:
- Total revenue increased 0.5% year over year.
- System-wide comparable restaurant sales rose 10.3%.
- Company-owned comparable restaurant sales climbed 11.4%.
- Franchise comparable restaurant sales grew 5.5%.
The strong comparable sales growth suggests the chain’s strategy of closing weaker-performing restaurants while investing in stronger locations is beginning to deliver measurable improvements.
“We’ve also delivered the strongest second quarter comparable sales performance since becoming a publicly traded company, which is far exceeding the industry Black Box results,” said Christina.
“Those results reinforce what we’ve been saying all year. The momentum at Noodles is real.”
