Noodles & Company to close an additional 30-35 restaurants this year

Core Insights - Noodles & Company reported a 6.6% increase in same-store sales for Q4 2025, with a notable growth of 7.3% at company-owned restaurants and 3.8% at franchises [1][2] Group 1: Financial Performance - The company ended the year with 340 company-owned and 83 franchised restaurants, planning to close an additional 30 to 35 locations in 2026 after closing 42 restaurants in the previous year [2] - CEO Joe Christina highlighted the positive sales growth as a continuation of a trend from Q3, attributing it to disciplined execution and enhancements in food quality [3][4] Group 2: Strategic Decisions - The closures are part of a "portfolio optimization" strategy aimed at focusing resources on the most promising locations to drive top-line growth [4] - The company is under pressure from activist investor Galloway Capital Partners to sell approximately 200 restaurants and has engaged Piper Sandler to explore options for maximizing shareholder value [4] Group 3: Shareholder Actions - Noodles & Company is facing potential delisting from Nasdaq due to share prices remaining below $1 for over six months, and a reverse stock split is proposed to increase share value [4] - Retention bonuses have been announced for executives in the event of a sale, with significant bonuses tied to their base salaries [4]