Noodles & Company closed dozens of restaurants last year. Here’s why the stock price is soaring in 2026

As part of a strategic move to optimize its store footprint, Noodles & Company closed 33 company-owned restaurants in 2025. In January, the chain said it would close dozens more stores this year.

However, despite the shrinking restaurant count, sales have grown. 

The fast-casual eatery held its fourth-quarter and full-year 2025 earnings call on Wednesday, March 25. It reported that comparable store sales increased 6.6% in the final quarter of 2025. Sales growth and traffic are also up as of early 2026.

Following the strong earnings report, shares of Noodles & Company (Nasdaq: NDLS) soared over 50% on Thursday.

The stock is up almost 60% year to date as of premarket trading on Friday. That’s a significant contrast to the broader Nasdaq Composite, which is down 7.78% for 2026 so far.

How store closures have helped same-store sales

Despite having closed more than 30 stores in 2025, Noodles & Company reported system-wide comparable store sales growth of nearly 7% in the fourth quarter of 2025. 

On Wednesday’s earnings call, CEO Joe Christina told investors that the restaurant closures “resulted in a material transfer of sales to nearby locations . . . which also favorably impacted margins.”

And store closures haven’t stopped customers from spending money.

CFO Mike Hynes explained during the call that a significant portion of Noodles & Company customers place takeout or delivery orders, so they’ve continued to order from nearby locations that remain open.

“The most meaningful impact is the post-closure transfer of sales to nearby Noodles & Company restaurants, which is driving a significant increase to our company-wide restaurant-level profits.”

New menu items also drove traffic

Menu changes and limited-time offerings have also played a significant role in driving sales and traffic growth, Christina said on the call.

“A great example is chili garlic ramen, which we introduced as a limited time offer in October,” he said. “Inspired by trending ramen hacks, this brothless bowl delivered the buttery, spicy, umami-packed flavors guests were already craving. It quickly became one of the strongest [limited-time offers] in our history.”

He noted that the trendy dish resonated well with loyalty program members and also brought in new customers. Because of its success, Noodles & Company is evaluating other ramen recipes. 

Christina also credits the fast-casual noodle chain’s value-focused messaging, “giving guests compelling meal combinations and an attractive price point that delivered balance, variety, and everyday affordability without compromising quality, while also raising consumer awareness to our new menu offerings.”

Hourly workers have been most impacted by the store closures

While an optimized physical footprint may be producing results for the company, store closures have come at a real cost to employees, primarily hourly workers.

According to Noodles & Company’s year-end 2025 10-K filing with the Securities and Exchange Commission (SEC), the fast-casual eatery employed approximately 6,000 hourly workers as of December 30, 2025, down from 6,800 a year prior. 

That’s a net loss of roughly 800 hourly jobs in one year. Meanwhile, the company’s salaried worker headcount remained unchanged during that same period, with 500 salaried workers reported for both years.