The American fast-casual chain Noodles & Company is preparing to close another wave of restaurants across the United States, following a significant round of shutdowns last year. The Colorado-based business confirmed this week that it is planning to axe between 30 and 35 locations in 2026 as part of a strategic review.
Strategic Closures Despite Sales Growth
This decision comes after the company closed 40 restaurants in 2025. Currently, Noodles & Company operates 423 sites nationwide, many situated in high-traffic areas like busy highways and shopping malls. In a press release issued this week, CEO and President Joe Christina explained the rationale behind the move.
"Decisions like this are made thoughtfully and with a long-term view of the business," Christina stated. He emphasised that the actions are designed to strengthen the overall health of the brand and its financial position, aiming to position the company for profitable growth and long-term value creation for shareholders.
Interestingly, the move follows reported sales growth. The firm saw a 7 percent increase in sales at company-owned restaurants in the fourth quarter of 2025, up from four percent in the previous quarter. Despite this positive trend, the company says it must explore "strategic alternatives" to maximise shareholder value.
The Persistent Challenge of Share Price
The core pressure point for Noodles & Company remains its stock market performance. The company has struggled to maintain its listing on the Nasdaq exchange. According to reports, it failed to keep its share price above the minimum $1 threshold for more than 30 consecutive trading days in both December 2024 and June 2025.
As of January 16, 2026, the company's share price stands at just $0.84. This represents a staggering decline from its initial public offering in 2013, when shares were valued at approximately $36.75. The current price indicates the stock has lost about 97 percent of its value since it first went public.
Looking Ahead with Cautious Optimism
The specific locations slated for closure in 2026 have not yet been disclosed. In the statement, Christina indicated that the performance in 2025 was a major factor driving the decision to shutter additional restaurants.
Nevertheless, the CEO struck an optimistic note about the future. "As we head into 2026, we are energized by the progress we are making and confident in our plan to develop winning teams, drive guest satisfaction, ignite growth, and deliver improved financial results," he wrote.
The company's strategy appears to be a difficult balancing act: streamlining its physical footprint to cut costs and improve financial metrics, while attempting to reignite growth and restore investor confidence in a brand that has been publicly traded since 2013.
