Noodles & Company announced on May 9, 2025, plans to close an increased number of restaurants in 2025 as part of its portfolio optimization strategy. The company expects to close between 13 and 17 company-owned restaurants and four franchise restaurants during the year. Nine company-owned locations had already been closed year-to-date in Q2.
This aggressive closure plan aims to remove underperforming units from the company's footprint. The strategic decision is intended to enhance the profitability of the remaining restaurant system. CFO Michael Hynes communicated these updated closure expectations during a conference call following the Q1 earnings release.
The closures are a direct response to the company's efforts to improve its operations and finances after a challenging period. By streamlining its restaurant base, Noodles & Company seeks to focus resources on more profitable locations and improve overall financial performance, despite the initial impact of these closures.
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