The Wave of Closures Continues Into 2026
Noodles & Company announced plans to close between 30 and 35 restaurants in 2026, continuing a difficult stretch for the fast-casual noodle chain. By the end of 2025, the company closed 42 locations, including 33 company-owned and nine franchised restaurants, which means the brand is facing an accelerated pace of shutdowns. At the high end, that would mean the chain will be shrinking its unit count by more than 18% over two years. The company originally planned fewer closures, though those projections proved overly optimistic as financial pressures mounted throughout the year.
From Expansion to Retrenchment
As of December 30, 2025, the fast-casual noodle chain had 340 company-owned restaurants and 83 franchise restaurants, after closing 42 restaurants last year. The chain actually opened in Denver back in 1995, building a loyal following with its diverse noodle offerings and customizable bowls. In 2002, there were 37 storefronts, reaching 65 by 2003, and 142 by 2007, with over 450 locations today and 13 restaurants opened in 2024 alone. These latest closures represent a dramatic reversal from those growth years.
Strategic Pruning or Survival Mode
CEO Joseph D. Christina explained that strategic closure of underperforming restaurants is one of the most significant levers the company can pull for sustained profitability. The company is approaching these closures thoughtfully, focusing on locations where they can effectively transfer sales to nearby restaurants given a high mix of off-premise revenue. Leadership insists these moves aren’t panic reactions, though the sheer volume of shutdowns tells a more complicated story. Activist investor Bruce Galloway urged the chain to sell off about 200 of its company-owned restaurants by refranchising to pay off debt, arguing that it would remove the risk of bankruptcy, adding external pressure to an already tense situation.
Menu Makeovers Meet Financial Reality
Since the hiring of new CEO Madsen in early 2024, the company worked on a menu overhaul, and after 18 months of research and testing, introduced a new menu which replaced 70% of its existing offerings. The changes aimed to attract health-conscious diners and adventurous eaters, with dishes like the Basil Pesto Cavatappi and Buffalo Chicken Ranch Mac & Cheese earning recognition as Food Network Favorites. Fourth quarter system-wide comparable sales increased 6.6%, comprised of a 7.3% increase at company-owned restaurants and a 3.8% increase at franchise restaurants, suggesting the menu revamp gained some traction. Still, positive sales at remaining stores couldn’t offset losses from underperforming locations dragging down the entire system.
What Happens Next for Noodles & Company
The Board of Directors initiated a review of strategic alternatives including refinancing of existing indebtedness, refranchising or sale of all or part of the business, and other strategic or financial transactions. The stock price has remained below the $1 mark required for Nasdaq compliance, though the company has proposed a stock split to regain compliance, with a shareholder meeting scheduled for February. The chain faces mounting pressure from investors and creditors alike. For regular customers, the closures mean fewer convenient locations, though corporate messaging emphasizes that nearby stores will absorb much of the business from shuttered outlets.
