30-year-old pasta chain announces 35 restaurant closures in 2026

Core Insights - Noodles & Company, a fast-casual restaurant chain founded in 1995, is facing operational and financial pressures in a challenging market, despite its initial success and nationwide expansion [1][2] - The company is exploring "strategic alternatives" to maximize shareholder value, including refinancing, refranchising, or potentially selling the business [2][3] - Noodles & Company has received delisting warnings from Nasdaq for failing to maintain a minimum share price of $1 for over 30 consecutive trading days [3] Business Strategy - The company plans to close 30 to 35 restaurants in 2026 as part of a strategy to reduce its national footprint and improve performance [5] - As of the end of 2025, Noodles & Company operated 423 restaurants, including 340 company-owned and 83 franchise locations [5] - The closure of underperforming restaurants is expected to benefit nearby profitable locations, driving margin and Adjusted EBITDA improvement [6] Financial Performance - Noodles & Company reported a 32.7% increase in adjusted EBITDA, reaching $6.5 million in the third quarter of 2025, up from $4.9 million the previous year [6] - The company's stock surged 14.6% at market close on January 12, representing a more than 21% year-to-date gain [7]