The American fast-casual chain Noodles & Company is set to close dozens more of its outlets, deepening a significant retrenchment as it battles persistent financial struggles.
A Strategic Retreat to Strengthen the Brand
According to a statement made on Friday 16 January 2026, the company, which operates 423 locations, is planning to shut between 30 and 35 additional restaurants. This move comes directly on the heels of a major cutback in 2025, which saw 40 sites permanently close their doors.
Chief Executive Officer Joe Christina explained the rationale behind the continued closures. He stated that these difficult decisions are being made thoughtfully, with the ultimate goal of securing long-term profitable growth and enhancing shareholder value. The strategy appears to be a focused effort to streamline operations and strengthen the core brand amidst challenging market conditions.
Chronic Financial Challenges and Share Price Plunge
The planned closures underscore the severe financial headwinds that have plagued Noodles & Company for over a decade. The company has been burdened by financial woes since it began trading publicly in 2013.
Its performance on the Nasdaq stock exchange has been particularly dismal. The firm has repeatedly faced challenges in maintaining its listing because its share price has fallen below the critical $1 threshold on multiple occasions. The decline in value has been staggering for investors.
Since its Initial Public Offering (IPO) in 2013, Noodles & Company's shares have lost a remarkable 97 per cent of their value. As of the latest reports, the stock is trading at just $0.84 per share.
What Lies Ahead for the Noodle Chain?
The consecutive waves of restaurant closures in 2025 and 2026 represent a decisive shift for the chain. Rather than aggressive expansion, the focus is now squarely on consolidation and financial recovery.
While the closure of underperforming locations may improve the company's overall financial health and operational efficiency, it raises questions about its future growth trajectory and market presence. The success of this retrenchment strategy will be closely watched by investors and industry analysts alike, as the chain attempts to navigate its way back to stability and, ultimately, profitability.
