If you’ve driven past a Noodles & Company lately and spotted a “closed” sign, you might be wondering what’s actually going on with this pasta chain? The short answer: No, Noodles & Company is not going out of business. They’re not filing for bankruptcy. They are closing a bunch of stores, but it’s part of a pretty standard (if a bit tough) turnaround plan.
Noodles & Company: No, They Aren’t Disappearing
It’s totally fair that people are concerned. We’ve seen big names like Red Lobster suddenly lock up locations for good. And when you notice fewer Noodles & Company restaurants in your neighborhood, it can look like bigger trouble.
But what’s happening is different. As of early 2026, Noodles & Company is shrinking in size but on purpose. They’re planning to close a total of 30 to 35 more underperforming restaurants in 2026. This is right after 42 closures that were finished in 2025. So the number of noodle shops you see will go down, but the chain itself is staying in business and the numbers actually show some signs of improvement.
Recent Closures, Financial Trends, and Why They’re Doing This
Right now, the company has around 423 locations in the country. That breaks down to 340 company-owned shops and 83 franchise stores as of late 2025. That’s definitely fewer than in previous years. In 2024, they closed 13 of their own stores and seven franchise locations. Then in 2025, another 33 company stores and nine more franchises shut down.
This round of closures is about targeting spots that just weren’t making enough money. The idea is classic: If a restaurant isn’t pulling its weight and there’s another one ten minutes away that’s super busy, you close the quiet one and hope some of those customers will drive a little further. That way, the company can focus on making the remaining locations more profitable and stop losing cash on stores that can’t break even.
Even as restaurants closed, Noodles & Company reported some decent numbers. In Q4 2025, their same-store sales the classic way restaurants judge if business is actually improving were up 6.6%. Company-owned stores did slightly better, hitting 7.3%. That’s not bad, especially since their Q3 numbers were also up 4%.
There’s more. They brought in $6.5 million in adjusted EBITDA a financial measure that lets investors see how a company is doing before the complicated stuff like taxes and depreciation. That’s up nearly 33% from before, which basically means their operations are running more efficiently.
CEO Joe Christina put it simply: these closures aren’t doom and gloom. He said the moves “position the company for profitable growth and long-term value creation.” In other words, it’s about trimming dead branches so the tree can stay healthy.
Wall Street Reacts With Some Skepticism, Some Hope
Investors on Wall Street paid close attention. When the company announced the latest closures and a preview of their Q4 results, the stock price actually jumped by 14.6% to 17% in one day, climbing to about 89 cents per share. That might sound small, but the stock price had already gained 21% earlier in 2026. It shows there are some buyers out there who think Noodles & Company can pull off a turnaround, or at least ride out the rough patch.
The company does face a problem, though. Their stock has been stuck below $1, leading to a nasty warning from Nasdaq. If it stays under for too long, they could get booted off the exchange which never looks great to investors, customers, or employees.
Industry-Wide Headwinds: Noodles Isn’t Alone Here
It’s worth saying, Noodles & Company isn’t the only fast-casual chain feeling the pinch. All over the industry, there are headwinds: labor is pricier, ingredient costs are all over the place, and people are spending money differently post-COVID. Value-focused diners want to stretch their dollars more, but restaurants need to pay their bills and employees.
For Noodles & Company, this has meant a rough patch for sales growth. Back in Q2 2025, revenue inched up just 0.7%. Part of that is because the chain tried to roll out some menu upgrades and recipe changes, and not everyone loved the new stuff. It’s a tightrope innovate, but don’t alienate regulars.
Strategic Alternatives: Investors Speak Up
Last September, Noodles & Company made it public that they’re open to what’s called “strategic alternatives.” That’s a broad term that can cover anything from refinancing debt to selling some (or all) of the company, or just shaking up which locations they own versus franchise out.
This came after Bruce Galloway, a well-known activist investor, started pushing for change. Galloway wants Noodles & Company to franchise almost 200 of its company-owned units. He argues that it would reduce financial risk and maybe avoid any need for bankruptcy down the line. Right now, this is only a proposal, but it’s definitely on the table.
The other big thing looming: a vote on a reverse stock split. This is when a company combines shares to boost the price, which could help Noodles get back in Nasdaq’s good graces. That vote is coming up in February 2026. Also, the company has tied executive retention bonuses to potential sale scenarios, making sure leadership sticks around if things get shaken up.
The Customer Experience: Rising Prices Lead to Complaints
If you go on forums or social media, you’ll spot some frustrated fans. The number one complaint? Prices. Customers are balking at what they see as high tabs some are saying they paid up to $18 for a small pasta bowl. Others complain about portions shrinking.
This isn’t just noise a lot of people decide where to eat based on value for money. When prices climb too fast, diners can check out competitors. The company admits they’ve seen some moderation in traffic related to these price and portion complaints. They’re now focusing on finding a balance that protects their margins but doesn’t chase customers away.
Looking Forward: Fewer Stores, But a Tighter Ship
After all these closures, Noodles & Company will have reduced its footprint by roughly 18% in just two years. By the end of 2026, that probably means fewer than 400 spots left. Some see that as a pullback, but management says it is a reset the chance to focus on locations that really make money.
The plan now is to put a big spotlight on making the customer experience better. The company wants to fine-tune its menu and make guests happier when they do come in. They think that by keeping the stores they have running well, offering more compelling dishes, and making sure every visit feels worth it, they can start to win back regulars and attract new fans.
It’s worth noting: Noodles & Company has made zero moves toward bankruptcy. They haven’t filed any paperwork, haven’t made public statements about a total shutdown, and show no signs of winding down corporate operations. That puts them in a stronger spot than some other chains that have struggled, like the recent headlines about Red Lobster shuttering dozens of restaurants and seeking bankruptcy protection.
A lot of businesses, especially restaurant chains, hit patches where they need to regroup. Some reduce their store base, others try big menu changes. The key is whether they can stabilize and start growing again maybe not in total locations, but at least in sales and traffic at the stores they keep.
If you’re curious about how franchise businesses weather tough times or are considering your own small restaurant or hospitality venture, there’s a lot you can learn from these kinds of stories. Sites like Side Business Tips can help you see the risks and rewards, especially if you’re following moves like refranchising or cutting down locations.
So, Is Noodles & Company Going Out of Business?
Nope, not at this time. They’re shrinking on purpose closing restaurants that don’t work, listening to investor pressure, and working hard to keep the remaining stores strong and profitable. There are, of course, big challenges: higher costs, picky customers, and that Nasdaq warning.
But their sales have started inching upward at those stores that stick around, and leadership insists there are no bankruptcy plans on the table. The next year is all about execution: keeping costs in check, bringing customers in, and making their best locations shine. It’s not the end of Noodles & Company, just a much-needed reset after a rough few years.
So if you still crave that Penne Rosa or Wisconsin Mac & Cheese, chances are you’ll be able to get it just maybe not at every corner for the foreseeable future. For now, the company’s focus is solidly on survival, rebuilding trust with guests, and nailing good execution across a leaner footprint. We’ll keep an eye on the next quarterly results and see if all this hard work pays off.
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