Popular fast-casual restaurant chain Noodles & Company has announced plans to close additional locations this year, even as sales continue to grow.
During a recent earnings call, CEO Drew Madsen shared that the company saw a 1.8% increase in customer traffic in the first quarter of 2025. Same-store sales in company-owned restaurants rose by 4.7%. This growth follows a successful menu expansion in October, which introduced dishes like Lemon Garlic Shrimp Scampi, Crispy Chicken Bacon Alfredo, and Chipotle Chicken Cavatappi. A broader menu update in March added more new items and refreshed recipes.
Madsen expressed satisfaction with these results. “This sustained and significant improvement in our sales trends demonstrates to us that the execution of our previously announced strategic priorities has gained traction,” he said. He also noted that sales of the new menu items have “significantly exceeded expectations.”
However, despite the sales boost, Noodles & Company still plans to close between 13 and 17 company-owned restaurants this year, along with four franchise locations. The closures are linked to rising food costs and increased marketing expenses.
The company has not yet disclosed which locations will be affected. Looking ahead, Noodles & Company expects to reduce its debt in the second half of 2025, aided by lower capital spending.
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