NOODLES & Co — Call Transcript 2026

Good afternoon, welcome to today's Noodles & Company's first quarter 2026 earnings conference call. I would now like to introduce Noodles & Company's Chief Financial Officer, Mike Hynes. Please go ahead, sir. Thank you, and good afternoon, everyone. Welcome to our first quarter 2026 earnings call. Here with me this afternoon is Joe Christina, our Chief Executive Officer. I'd like to start by going over a few regulatory matters. During the call, we may make forward-looking statements regarding future events or the future financial performance of the company. Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements are only projections, and actual events or results could differ from those projections due to a number of risks and uncertainties, including those referred to in this afternoon's news release and the cautionary statement in the company's annual report on Form 10-K and subsequent filings with the SEC. During the call, we will discuss non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is available in our first quarter 2026 earnings release. To the extent the company provides guidance, it does so only on a non-GAAP basis and does not provide reconciliations of forward-looking non-GAAP measures. Quantitative reconciling information for these measures is unavailable without unreasonable efforts. With that, I would like to turn the call over to Joe Christina, our Chief Executive Officer. Thanks, Mike. Good afternoon. As we look at our performance in the first quarter and into the second, the story is clear. We are delivering consistent and sustainable favorable results across Noodles & Company, demonstrated by system-wide comp sales growth of over 9% and adjusted EBITDA more than tripling year-over-year in the first quarter. More importantly, this momentum continued into the second quarter with April system-wide comp sales growth of over 9%, including over 10% for our company-operated restaurants. To date, we have delivered positive same-store sales for the last 16 consecutive months. In conjunction with the increase in comparable sales, our restaurant contribution margins increased by a significant 460 basis points in the first quarter, with the combination of the strong sales and margin increases reflected in the over tripling of our adjusted EBITDA results. What gives me confidence in the sustainability of our results is that our progress is driven not by a single initiative or unlock. It is a result of a focused, disciplined approach to executing the fundamentals of our business and doing the small things right every day, with those small improvements adding up to meaningful wins. Moreover, we are seeing those winning behaviors spread across the organization, leading to stronger execution and a better overall guest experience. What's important to understand is that this progress is not accidental. It is the result of how our teams show up and operate every day. We are seeing that come through clearly in 3 areas. First, we are running more consistent restaurant operations. Second, our marketing is more disciplined and more connected. Third, our culinary strategy is driving demand through relevant, craveable food. Let me start with our restaurants. Put simply, we are operating better restaurants today than we were a year ago. Across the system, we are executing at a higher level in the moments that matter most to our guests. We are seeing meaningful improvement in service, particularly during our dinner daypart, where consistency and hospitality have the greatest impact. Our overall guest satisfaction scores increased by 10% in the last 6 months, with significant improvements achieved in all of our major sales channels: in-restaurant, native digital, and third-party delivery. That comes from more focused, more aligned teams who understand what matters most and hold themselves accountable to it. We are recognizing strong performance and reinforcing it, which raises the standards across the system. Guests are noticing the difference, and that is showing up in stronger in-restaurant sales and more consistent traffic patterns. At the same time, as execution in our restaurants has improved, our marketing has become more disciplined, more connected, and more effective. We're not relying on a single campaign or promotion. We are operating with a consistent, ongoing dialogue with our guests, anchored in what we do best, delivering craveable, globally inspired noodle dishes. That work is showing up in the business. We're seeing it in both sales and transactions, supported by stronger engagement across our paid, owned, and earned channels. Importantly, a meaningful portion of that growth is coming from new guests entering the brand. In fact, new guest active purchases increased 36% year-over-year, and loyalty sign-ups grew 33% in the quarter. Clear indicators that our brand is reaching new audiences. We also become intentional in how we invest. In paid media, we are actively managing performance in real time across channels, allowing us to allocate dollars more efficiently and maximize return. We are not separating traffic from brand. The same work that brings guests into our restaurants is also strengthening how they think about Noodles. In the first quarter, we introduced what we call a Boost Week offer, a focused time-bound activation designed to drive immediate profitable traffic during key periods. During this winter, reward members can enjoy two of our culinary classics for $12. The results were strong as we added new loyalty members, reactivated lapsed guests, and drove a meaningful increase in traffic to our website. Based on that performance, we plan to build this into a repeatable program and execute it on a quarterly basis. We have also launched our fresh campaign highlighting ingredient quality and reinforcing the care that goes into every dish, helping to elevate how our guests perceive our food. On the culinary side, we are executing a focused strategy that balances fan favorite returns, bold global flavors, and culturally relevant partnerships to drive both frequency and new guest engagement. This progress began last year with the most significant menu transformation in our company’s history as we introduced a range of new and enhanced dishes that strengthen the core of our offerings. We followed that with our Delicious Duos platform, which reinforced our value proposition in a disciplined way as well as provided further reinforcement of the new and enhanced menu items. Later in the year, we introduced Chili Garlic Ramen, one of our most successful limited time offers, which brought new guests to the brand and further reinforced Noodles as a credible, differentiated fast casual destination for globally inspired noodle dishes. In the first quarter, Steak Stroganoff returned as a highly successful limited time offer. We brought it back in response to strong guest demand. The results reinforced both the strength of our loyal guest base and our ability to attract new guests. We also expanded how we supported that launch through differentiated marketing initiatives to build broader awareness to reach beyond our core guests. More broadly, fan favorites like Steak Stroganoff play an important role in our strategy. For longtime guests, they create a reason to return. For new guests, they provide an easy entry point into a brand through dishes we know resonate. We continued that approach into March by highlighting our Asian category and bringing back Indonesian Peanut Sauté alongside Chili Garlic Ramen. This work reinforced our global flavor profile, showcasing the variety on our menu, and helped lift the overall Asian category. During this LTO window, our Asian category mix has increased 40%, a clear signal that this strategy is resonating with guests. As limited time offers remain a key part of our menu strategy, I’m excited to share our newest LTO, Chicken Artichoke & Asparagus Rigatoni, which is available today nationwide. This dish is a bright spring-forward pasta that brings together fresh seasonal ingredients with the comforting flavors our guests expect from Noodles. In tandem with this LTO, we are partnering with Cravings by Chrissy Teigen to offer guests the Craveable Bundle, which includes our new Chicken Artichoke & Asparagus Rigatoni alongside a Cravings-inspired Crispy, a nostalgic sweet and salty twist on our signature treat. This is another example of how we are delivering craveable food while elevating it through the right partnership. We know Noodles and the Cravings brand, which has a significant following by one of our key demographics, certainly knows Cravings. Together, we are bringing those strengths to life in a way that allows us to show up in culture authentically while driving awareness, trial, and engagement. Across all these efforts, the through line is clear. We are executing well in our restaurants, supporting it with disciplined marketing and delivering craveable food. We create a better guest experience that is translating into consistent performance and steady growth in both comparable sales and margins. At the same time, we have taken a disciplined look at our portfolio and how our restaurants are performing across markets. In select areas, we had too much density, particularly as our off-premise sales continued to grow. We made the decision to optimize our footprint. By closing underperforming restaurants in these areas, we have seen a significant transfer of their sales to nearby restaurants, which results in a higher baseline average unit volume for those go-forward restaurants, which also further improves restaurant level margin and profitability. It also allows us to focus our resources on our strongest restaurants, improving efficiency and drive better overall company profitability. The progress we are seeing is helping across the business and is building on itself. We are seeing a shift in mindset across the organization, and our teams believe they can impact results. They are taking ownership, and as we continue to reinforce strong execution, winning is becoming contagious across our teams. That is what allows this momentum to sustain. As we look ahead, we will stay focused, remain disciplined, and continue executing at a high level every day. With that, I will turn it over to Mike to walk through the financial details. Thank you, Joe. In the first quarter, our total revenue was relatively flat compared to last year at $123.8 million, with strong comp sales growth mostly offset by the closing of underperforming locations. System-wide comp restaurant sales during the first quarter increased 9.1%, including an increase of 9.4% at company-owned restaurants and an increase of 8% at franchise restaurants. Company comp traffic during the first quarter increased 4.8% and average check increased 4.4%, inclusive of 2% effective pricing during the quarter. Company average unit volumes in the first quarter increased 13.5% to $1.49 million. Our sales growth in the first quarter, which was an acceleration of the sales growth we saw in the back half of 2025, delivered impressive restaurant contribution margin growth. Our restaurant contribution margin in the first quarter increased 460 basis points to 14.9% from 10.3% in the first quarter of 2025. COGS in the first quarter were 25.4% of sales, a 120 basis point decrease from last year, which was driven by lower food waste related to new menu items, menu pricing, and lower discounting, partially offset by higher food costs associated with our new menu offerings and modest inflation. Our food inflation in the first quarter was 0.2%. Labor costs for the first quarter were 30.0% of sales, which was down 250 basis points to prior year, primarily due to the benefit of sales leverage and labor efficiencies, partially offset by wage inflation. Hourly wage inflation in the first quarter was 1.9%. Occupancy costs in the first quarter decreased to $10.4 million compared to $11.5 million in 2025 due to a reduction in our company-owned restaurant count over the last twelve months. Other restaurant operating costs increased by 10 basis points in the first quarter to 21.2%. The increase in other restaurant operating costs was primarily driven by a combination of higher third-party delivery fees from higher third-party delivery channel sales and higher marketing expenses, which were mostly offset by sales leverage and lower repairs and maintenance costs. G&A in the first quarter was $12.5 million compared to $12.8 million in 2025. Net loss for the first quarter was $3.4 million or a loss of $0.58 per diluted share, compared to a net loss of $9.1 million or a loss of $1.58 per diluted share last year. The loss in the first quarter of 2026 included a $2.7 million non-cash impairment charge, primarily related to our decision to close underperforming restaurants. Our adjusted EBITDA in the first quarter more than tripled to $7.7 million compared to $2.4 million in the first quarter of 2025. Our first quarter capital expenditures totaled $2.1 million compared to $2.9 million in 2025. At the end of the first quarter, we had $1.4 million of available cash and our debt balance was $106.8 million, which was a reduction of $3.4 million from our debt balance at the end of 2025, as we were able to pay down debt in a seasonally low quarter. In the first quarter, we closed 20 company-owned restaurants and three franchise restaurants. The 20 company-owned restaurants were closed as a part of our restaurant portfolio optimization project, which continues to yield a significant transfer of sales to nearby locations given our high mix of off-premise sales, contributing to improvement in our comp sales and overall profitability. That said, a majority of the comp restaurant sales increase in the first quarter was driven by the improvement in our underlying business fundamentals, with our portfolio optimization providing an added benefit. Overall, we are extremely pleased with our first quarter results, which exceeded our expectations as our restaurant contribution margin and adjusted EBITDA improvements were driven by our double-digit average unit volume increases paired with effective cost management. As we reflect on the first quarter results and look forward to the rest of the year, we're raising our full year 2026 guidance to the following: Total revenue of $483 million-$498 million, including comp restaurant sales growth of 7%-10%. Restaurant contribution margin between 15.5% and 17%. General and administrative expenses of $50 million-$53 million, inclusive of stock-based compensation expense of approximately $2.5 million. Depreciation and amortization expense of $24 million-$25 million. Interest expense of $10 million-$11 million. Adjusted EBITDA between $32.5 million and $37.5 million. 1 to 2 new franchise restaurant openings. Restaurant closures, 30 to 35 company-owned restaurants and 5 franchise restaurants. We estimate total 2026 capital expenditures of $9.5 million-$10.5 million. We continue to expect to be free cash flow positive and have the opportunity to reduce our debt balance in 2026 by approximately $10 million, including the $3.4 million reduction in the first quarter. For further information regarding our 2026 expectations, please see the Business Outlook section of our press release. With that, I'd like to turn the call back over to Joe for final remarks. Thanks, Mike. We are very pleased with our first quarter results, reflecting in continued strong momentum at Noodles & Company, which continues into the second quarter. We are very encouraged by this momentum and remain focused on executing the fundamentals every day that are delivering better overall guest experience, as evidenced by sequential improvement in our guest satisfaction scores, sustained traffic growth, increased engagement with our guests, and more consistent in-restaurant performance. Thank you for your time today, and I'll now turn the call back over to the operator. Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star then one on your touch tone phone. You will hear a confirmation tone to indicate that you have joined the queue. If you decide to withdraw the question, please press star and then two to remove yourself from the list. Again, if you would like to ask a question, please press star and then one now. The first question that we have comes from Todd Brooks of Benchmark Company. Please go ahead. Hey, guys. Congratulations and thanks for taking a few questions here. Appreciate it. Thank you, Todd. Thanks, Todd. Mike, you had, you kinda quantified the same store sales in Q1 as majority driven by kinda fundamental business improvements and the momentum in the business. I think last quarter you kinda parsed out the sales transfer contribution versus the contribution from the fundamental improvements. Is that something you'll do this quarter as well? You mean for the second quarter? Is that the same method for the second quarter? Well, well, no, for same store sales, I'm just wondering what came from the contribution from closed locations versus? Oh. Just the core business. Yeah, we talked about 200-300 basis points, a few weeks ago during our Q4 call, and that's about where we landed, right in the middle of that, about 250 basis points attributable to the closed locations. You know, most of the benefit was due to core business improvement, which is really encouraging to see. Yeah, it's fantastic. Then it sounds silly 'cause the same store sales are so strong, but did you guys have any winter weather-related impact that muted results in the first quarter that you would call out? Just timing between the periods, but overall, we feel like it, you know, kinda washed out and wasn't a big impact for the quarter. Okay, great. Joe, you talked about the introduction of a boost week. I was wondering kind of the, is this something you're gonna tease for customers ahead of time, or is it something you're gonna drop on them kinda? What's the strategy for how this rolls out quarter after quarter? Yeah, great question, Todd. That's a strategy around our reward members, so it's offered to them, and it's also offered to other guests once they sign up for our reward activity. It's something that attracts new guests to our app as well as our existing guests to give them a great promotion. With the results we saw, it's something that we're gonna continue throughout the year. Okay. I assume that you would stagger that with the new LTO rolling out today. It wouldn't be something we would see until later in the quarter then, the boost week? Correct. It's specific weeks of the year outside of our existing LTO. Okay, great. You talked about the second quarter LTO. I know last quarter, you had some additional items when you were running the sauté. You added the ramen back in. Are there any other kind of add-ins to this LTO, or is it going to be this dish standing on its own through the quarter? Just the partnership that we are with Cravings with Chrissy Teigen, and getting the benefit of all her followers, as well as a new treat to put it in the bundle. We are standing on our LTO for this quarter, and with other new news coming up in the remainder of the year. Okay, a final one for me, and thanks for being patient with all the questions. Mike, I think you talked about check being up 4.4%. Can you break that down between price and mix? Yeah, we had about 2% price for the quarter, and that's really our expectation for the full year 2026, with the rest coming from mix. The mix benefit we've been seeing for a couple of quarters now as we've had the new menu items, which have a little higher price point. Also the strength of our delivery channel is pushing the check up a bit as well. Okay, great. Congrats again, guys. Really, really good stuff here. Thank you, Todd. Thanks so much, Todd. Thank you. Ladies and gentlemen, that then concludes today's conference call. Thank you for joining us. You may now disconnect your lines.

Speaker 3: Good afternoon, welcome to today's Noodles & Company's first quarter 2026 earnings conference call. I would now like to introduce Noodles & Company's Chief Financial Officer, Mike Hynes. Please go ahead, sir. Good afternoon, welcome to today's Noodles & Company's first quarter 2026 earnings conference call. good afternoon welcome to today's noodles & company's first quarter 2026 earnings conference call I would now like to introduce Noodles & Company's Chief Financial Officer, Mike Hynes. i would now like to introduce noodles & company's chief financial officer mike hynes Please go ahead, sir. please go ahead sir

Speaker 2: Thank you, and good afternoon, everyone. Welcome to our first quarter 2026 earnings call. Here with me this afternoon is Joe Christina, our Chief Executive Officer. I'd like to start by going over a few regulatory matters. During the call, we may make forward-looking statements regarding future events or the future financial performance of the company. Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements are only projections, and actual events or results could differ from those projections due to a number of risks and uncertainties, including those referred to in this afternoon's news release and the cautionary statement in the company's annual report on Form 10-K and subsequent filings with the SEC. During the call, we will discuss non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. Thank you, and good afternoon, everyone. thank you and good afternoon everyone Welcome to our first quarter 2026 earnings call. welcome to our first quarter 2026 earnings call Here with me this afternoon is Joe Christina, our Chief Executive Officer. here with me this afternoon is joe christina our chief executive officer I'd like to start by going over a few regulatory matters. i'd like to start by going over a few regulatory matters During the call, we may make forward-looking statements regarding future events or the future financial performance of the company. during the call we may make forward-looking statements regarding future events or the future financial performance of the company Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act. any such items should be considered forward-looking statements within the meaning of the private securities litigation reform act Such statements are only projections, and actual events or results could differ from those projections due to a number of risks and uncertainties, including those referred to in this afternoon's news release and the cautionary statement in the company's annual report on Form 10-K and subsequent filings with the SEC. such statements are only projections and actual events or results could differ from those projections due to a number of risks and uncertainties including those referred to in this afternoon's news release and the cautionary statement in the company's annual report on form 10-k and subsequent filings with the sec During the call, we will discuss non-GAAP measures, which we believe can be useful in evaluating the company's operating performance. during the call we will discuss non-gaap measures which we believe can be useful in evaluating the company's operating performance These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is available in our first quarter 2026 earnings release. To the extent the company provides guidance, it does so only on a non-GAAP basis and does not provide reconciliations of forward-looking non-GAAP measures. Quantitative reconciling information for these measures is unavailable without unreasonable efforts. With that, I would like to turn the call over to Joe Christina, our Chief Executive Officer. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. these measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with gaap A reconciliation of these measures to the most directly comparable GAAP measures is available in our first quarter 2026 earnings release. a reconciliation of these measures to the most directly comparable gaap measures is available in our first quarter 2026 earnings release To the extent the company provides guidance, it does so only on a non-GAAP basis and does not provide reconciliations of forward-looking non-GAAP measures. to the extent the company provides guidance it does so only on a non-gaap basis and does not provide reconciliations of forward-looking non-gaap measures Quantitative reconciling information for these measures is unavailable without unreasonable efforts. quantitative reconciling information for these measures is unavailable without unreasonable efforts With that, I would like to turn the call over to Joe Christina, our Chief Executive Officer. with that i would like to turn the call over to joe christina our chief executive officer

Speaker 1: Thanks, Mike. Good afternoon. As we look at our performance in the first quarter and into the second, the story is clear. We are delivering consistent and sustainable favorable results across Noodles & Company, demonstrated by system-wide comp sales growth of over 9% and adjusted EBITDA more than tripling year-over-year in the first quarter. More importantly, this momentum continued into the second quarter with April system-wide comp sales growth of over 9%, including over 10% for our company-operated restaurants. To date, we have delivered positive same-store sales for the last 16 consecutive months. In conjunction with the increase in comparable sales, our restaurant contribution margins increased by a significant 460 basis points in the first quarter, with the combination of the strong sales and margin increases reflected in the over tripling of our adjusted EBITDA results. Thanks, Mike. thanks mike Good afternoon. good afternoon As we look at our performance in the first quarter and into the second, the story is clear. as we look at our performance in the first quarter and into the second the story is clear We are delivering consistent and sustainable favorable results across Noodles & Company, demonstrated by system-wide comp sales growth of over 9% and adjusted EBITDA more than tripling year-over-year in the first quarter. we are delivering consistent and sustainable favorable results across noodles & company demonstrated by system-wide comp sales growth of over 9% and adjusted ebitda more than tripling year-over-year in the first quarter More importantly, this momentum continued into the second quarter with April system-wide comp sales growth of over 9%, including over 10% for our company-operated restaurants. more importantly this momentum continued into the second quarter with april system-wide comp sales growth of over 9% including over 10% for our company-operated restaurants To date, we have delivered positive same-store sales for the last 16 consecutive months. to date we have delivered positive same-store sales for the last 16 consecutive months In conjunction with the increase in comparable sales, our restaurant contribution margins increased by a significant 460 basis points in the first quarter, with the combination of the strong sales and margin increases reflected in the over tripling of our adjusted EBITDA results. in conjunction with the increase in comparable sales our restaurant contribution margins increased by a significant 460 basis points in the first quarter with the combination of the strong sales and margin increases reflected in the over tripling of our adjusted ebitda results What gives me confidence in the sustainability of our results is that our progress is driven not by a single initiative or unlock. It is a result of a focused, disciplined approach to executing the fundamentals of our business and doing the small things right every day, with those small improvements adding up to meaningful wins. Moreover, we are seeing those winning behaviors spread across the organization, leading to stronger execution and a better overall guest experience. What's important to understand is that this progress is not accidental. It is the result of how our teams show up and operate every day. We are seeing that come through clearly in 3 areas. First, we are running more consistent restaurant operations. Second, our marketing is more disciplined and more connected. Third, our culinary strategy is driving demand through relevant, craveable food. Let me start with our restaurants. What gives me confidence in the sustainability of our results is that our progress is driven not by a single initiative or unlock. what gives me confidence in the sustainability of our results is that our progress is driven not by a single initiative or unlock It is a result of a focused, disciplined approach to executing the fundamentals of our business and doing the small things right every day, with those small improvements adding up to meaningful wins. it is a result of a focused disciplined approach to executing the fundamentals of our business and doing the small things right every day with those small improvements adding up to meaningful wins Moreover, we are seeing those winning behaviors spread across the organization, leading to stronger execution and a better overall guest experience. moreover we are seeing those winning behaviors spread across the organization leading to stronger execution and a better overall guest experience What's important to understand is that this progress is not accidental. what's important to understand is that this progress is not accidental It is the result of how our teams show up and operate every day. it is the result of how our teams show up and operate every day We are seeing that come through clearly in 3 areas. we are seeing that come through clearly in 3 areas First, we are running more consistent restaurant operations. first we are running more consistent restaurant operations Second, our marketing is more disciplined and more connected. second our marketing is more disciplined and more connected Third, our culinary strategy is driving demand through relevant, craveable food. third our culinary strategy is driving demand through relevant craveable food Let me start with our restaurants. let me start with our restaurants Put simply, we are operating better restaurants today than we were a year ago. Across the system, we are executing at a higher level in the moments that matter most to our guests. We are seeing meaningful improvement in service, particularly during our dinner daypart, where consistency and hospitality have the greatest impact. Our overall guest satisfaction scores increased by 10% in the last 6 months, with significant improvements achieved in all of our major sales channels: in-restaurant, native digital, and third-party delivery. That comes from more focused, more aligned teams who understand what matters most and hold themselves accountable to it. We are recognizing strong performance and reinforcing it, which raises the standards across the system. Guests are noticing the difference, and that is showing up in stronger in-restaurant sales and more consistent traffic patterns. Put simply, we are operating better restaurants today than we were a year ago. put simply we are operating better restaurants today than we were a year ago Across the system, we are executing at a higher level in the moments that matter most to our guests. across the system we are executing at a higher level in the moments that matter most to our guests We are seeing meaningful improvement in service, particularly during our dinner daypart, where consistency and hospitality have the greatest impact. we are seeing meaningful improvement in service particularly during our dinner daypart where consistency and hospitality have the greatest impact Our overall guest satisfaction scores increased by 10% in the last 6 months, with significant improvements achieved in all of our major sales channels: in-restaurant, native digital, and third-party delivery. our overall guest satisfaction scores increased by 10% in the last 6 months with significant improvements achieved in all of our major sales channels in-restaurant native digital and third-party delivery That comes from more focused, more aligned teams who understand what matters most and hold themselves accountable to it. that comes from more focused more aligned teams who understand what matters most and hold themselves accountable to it We are recognizing strong performance and reinforcing it, which raises the standards across the system. we are recognizing strong performance and reinforcing it which raises the standards across the system Guests are noticing the difference, and that is showing up in stronger in-restaurant sales and more consistent traffic patterns. guests are noticing the difference and that is showing up in stronger in-restaurant sales and more consistent traffic patterns At the same time, as execution in our restaurants has improved, our marketing has become more disciplined, more connected, and more effective. We're not relying on a single campaign or promotion. We are operating with a consistent, ongoing dialogue with our guests, anchored in what we do best, delivering craveable, globally inspired noodle dishes. That work is showing up in the business. We're seeing it in both sales and transactions, supported by stronger engagement across our paid, owned, and earned channels. Importantly, a meaningful portion of that growth is coming from new guests entering the brand. In fact, new guest active purchases increased 36% year-over-year, and loyalty sign-ups grew 33% in the quarter. Clear indicators that our brand is reaching new audiences. We also become intentional in how we invest. At the same time, as execution in our restaurants has improved, our marketing has become more disciplined, more connected, and more effective. at the same time as execution in our restaurants has improved our marketing has become more disciplined more connected and more effective We're not relying on a single campaign or promotion. we're not relying on a single campaign or promotion We are operating with a consistent, ongoing dialogue with our guests, anchored in what we do best, delivering craveable, globally inspired noodle dishes. we are operating with a consistent ongoing dialogue with our guests anchored in what we do best delivering craveable globally inspired noodle dishes That work is showing up in the business. that work is showing up in the business We're seeing it in both sales and transactions, supported by stronger engagement across our paid, owned, and earned channels. Importantly, a meaningful portion of that growth is coming from new guests entering the brand. we're seeing it in both sales and transactions supported by stronger engagement across our paid owned and earned channels. importantly a meaningful portion of that growth is coming from new guests entering the brand In fact, new guest active purchases increased 36% year-over-year, and loyalty sign-ups grew 33% in the quarter. in fact new guest active purchases increased 36% year-over-year and loyalty sign-ups grew 33% in the quarter Clear indicators that our brand is reaching new audiences. clear indicators that our brand is reaching new audiences We also become intentional in how we invest. we also become intentional in how we invest In paid media, we are actively managing performance in real time across channels, allowing us to allocate dollars more efficiently and maximize return. We are not separating traffic from brand. The same work that brings guests into our restaurants is also strengthening how they think about Noodles. In the first quarter, we introduced what we call a Boost Week offer, a focused time-bound activation designed to drive immediate profitable traffic during key periods. During this winter, reward members can enjoy two of our culinary classics for $12. The results were strong as we added new loyalty members, reactivated lapsed guests, and drove a meaningful increase in traffic to our website. Based on that performance, we plan to build this into a repeatable program and execute it on a quarterly basis. In paid media, we are actively managing performance in real time across channels, allowing us to allocate dollars more efficiently and maximize return. in paid media we are actively managing performance in real time across channels allowing us to allocate dollars more efficiently and maximize return We are not separating traffic from brand. we are not separating traffic from brand The same work that brings guests into our restaurants is also strengthening how they think about Noodles. the same work that brings guests into our restaurants is also strengthening how they think about noodles In the first quarter, we introduced what we call a Boost Week offer, a focused time-bound activation designed to drive immediate profitable traffic during key periods. in the first quarter we introduced what we call a boost week offer a focused time-bound activation designed to drive immediate profitable traffic during key periods During this winter, reward members can enjoy two of our culinary classics for $12. during this winter reward members can enjoy two of our culinary classics for $12 The results were strong as we added new loyalty members, reactivated lapsed guests, and drove a meaningful increase in traffic to our website. the results were strong as we added new loyalty members reactivated lapsed guests and drove a meaningful increase in traffic to our website Based on that performance, we plan to build this into a repeatable program and execute it on a quarterly basis. based on that performance we plan to build this into a repeatable program and execute it on a quarterly basis We have also launched our fresh campaign highlighting ingredient quality and reinforcing the care that goes into every dish, helping to elevate how our guests perceive our food. On the culinary side, we are executing a focused strategy that balances fan favorite returns, bold global flavors, and culturally relevant partnerships to drive both frequency and new guest engagement. This progress began last year with the most significant menu transformation in our company’s history as we introduced a range of new and enhanced dishes that strengthen the core of our offerings. We followed that with our Delicious Duos platform, which reinforced our value proposition in a disciplined way as well as provided further reinforcement of the new and enhanced menu items. We have also launched our fresh campaign highlighting ingredient quality and reinforcing the care that goes into every dish, helping to elevate how our guests perceive our food. we have also launched our fresh campaign highlighting ingredient quality and reinforcing the care that goes into every dish helping to elevate how our guests perceive our food On the culinary side, we are executing a focused strategy that balances fan favorite returns, bold global flavors, and culturally relevant partnerships to drive both frequency and new guest engagement. on the culinary side we are executing a focused strategy that balances fan favorite returns bold global flavors and culturally relevant partnerships to drive both frequency and new guest engagement This progress began last year with the most significant menu transformation in our company’s history as we introduced a range of new and enhanced dishes that strengthen the core of our offerings. this progress began last year with the most significant menu transformation in our company’s history as we introduced a range of new and enhanced dishes that strengthen the core of our offerings We followed that with our Delicious Duos platform, which reinforced our value proposition in a disciplined way as well as provided further reinforcement of the new and enhanced menu items. we followed that with our delicious duos platform which reinforced our value proposition in a disciplined way as well as provided further reinforcement of the new and enhanced menu items Later in the year, we introduced Chili Garlic Ramen, one of our most successful limited time offers, which brought new guests to the brand and further reinforced Noodles as a credible, differentiated fast casual destination for globally inspired noodle dishes. In the first quarter, Steak Stroganoff returned as a highly successful limited time offer. We brought it back in response to strong guest demand. The results reinforced both the strength of our loyal guest base and our ability to attract new guests. We also expanded how we supported that launch through differentiated marketing initiatives to build broader awareness to reach beyond our core guests. More broadly, fan favorites like Steak Stroganoff play an important role in our strategy. For longtime guests, they create a reason to return. For new guests, they provide an easy entry point into a brand through dishes we know resonate. Later in the year, we introduced Chili Garlic Ramen, one of our most successful limited time offers, which brought new guests to the brand and further reinforced Noodles as a credible, differentiated fast casual destination for globally inspired noodle dishes. later in the year we introduced chili garlic ramen one of our most successful limited time offers which brought new guests to the brand and further reinforced noodles as a credible differentiated fast casual destination for globally inspired noodle dishes In the first quarter, Steak Stroganoff returned as a highly successful limited time offer. in the first quarter steak stroganoff returned as a highly successful limited time offer We brought it back in response to strong guest demand. we brought it back in response to strong guest demand The results reinforced both the strength of our loyal guest base and our ability to attract new guests. the results reinforced both the strength of our loyal guest base and our ability to attract new guests We also expanded how we supported that launch through differentiated marketing initiatives to build broader awareness to reach beyond our core guests. we also expanded how we supported that launch through differentiated marketing initiatives to build broader awareness to reach beyond our core guests More broadly, fan favorites like Steak Stroganoff play an important role in our strategy. more broadly fan favorites like steak stroganoff play an important role in our strategy For longtime guests, they create a reason to return. for longtime guests they create a reason to return For new guests, they provide an easy entry point into a brand through dishes we know resonate. for new guests they provide an easy entry point into a brand through dishes we know resonate We continued that approach into March by highlighting our Asian category and bringing back Indonesian Peanut Sauté alongside Chili Garlic Ramen. This work reinforced our global flavor profile, showcasing the variety on our menu, and helped lift the overall Asian category. During this LTO window, our Asian category mix has increased 40%, a clear signal that this strategy is resonating with guests. As limited time offers remain a key part of our menu strategy, I’m excited to share our newest LTO, Chicken Artichoke & Asparagus Rigatoni, which is available today nationwide. This dish is a bright spring-forward pasta that brings together fresh seasonal ingredients with the comforting flavors our guests expect from Noodles. We continued that approach into March by highlighting our Asian category and bringing back Indonesian Peanut Sauté alongside Chili Garlic Ramen. we continued that approach into march by highlighting our asian category and bringing back indonesian peanut sauté alongside chili garlic ramen This work reinforced our global flavor profile, showcasing the variety on our menu, and helped lift the overall Asian category. this work reinforced our global flavor profile showcasing the variety on our menu and helped lift the overall asian category During this LTO window, our Asian category mix has increased 40%, a clear signal that this strategy is resonating with guests. during this lto window our asian category mix has increased 40% a clear signal that this strategy is resonating with guests As limited time offers remain a key part of our menu strategy, I’m excited to share our newest LTO, Chicken Artichoke & Asparagus Rigatoni, which is available today nationwide. as limited time offers remain a key part of our menu strategy i’m excited to share our newest lto chicken artichoke & asparagus rigatoni which is available today nationwide This dish is a bright spring-forward pasta that brings together fresh seasonal ingredients with the comforting flavors our guests expect from Noodles. this dish is a bright spring-forward pasta that brings together fresh seasonal ingredients with the comforting flavors our guests expect from noodles In tandem with this LTO, we are partnering with Cravings by Chrissy Teigen to offer guests the Craveable Bundle, which includes our new Chicken Artichoke & Asparagus Rigatoni alongside a Cravings-inspired Crispy, a nostalgic sweet and salty twist on our signature treat. This is another example of how we are delivering craveable food while elevating it through the right partnership. We know Noodles and the Cravings brand, which has a significant following by one of our key demographics, certainly knows Cravings. Together, we are bringing those strengths to life in a way that allows us to show up in culture authentically while driving awareness, trial, and engagement. Across all these efforts, the through line is clear. We are executing well in our restaurants, supporting it with disciplined marketing and delivering craveable food. In tandem with this LTO, we are partnering with Cravings by Chrissy Teigen to offer guests the Craveable Bundle, which includes our new Chicken Artichoke & Asparagus Rigatoni alongside a Cravings-inspired Crispy, a nostalgic sweet and salty twist on our signature treat. in tandem with this lto we are partnering with cravings by chrissy teigen to offer guests the craveable bundle which includes our new chicken artichoke & asparagus rigatoni alongside a cravings-inspired crispy a nostalgic sweet and salty twist on our signature treat This is another example of how we are delivering craveable food while elevating it through the right partnership. this is another example of how we are delivering craveable food while elevating it through the right partnership We know Noodles and the Cravings brand, which has a significant following by one of our key demographics, certainly knows Cravings. we know noodles and the cravings brand which has a significant following by one of our key demographics certainly knows cravings Together, we are bringing those strengths to life in a way that allows us to show up in culture authentically while driving awareness, trial, and engagement. together we are bringing those strengths to life in a way that allows us to show up in culture authentically while driving awareness trial and engagement Across all these efforts, the through line is clear. across all these efforts the through line is clear We are executing well in our restaurants, supporting it with disciplined marketing and delivering craveable food. we are executing well in our restaurants supporting it with disciplined marketing and delivering craveable food We create a better guest experience that is translating into consistent performance and steady growth in both comparable sales and margins. At the same time, we have taken a disciplined look at our portfolio and how our restaurants are performing across markets. In select areas, we had too much density, particularly as our off-premise sales continued to grow. We made the decision to optimize our footprint. By closing underperforming restaurants in these areas, we have seen a significant transfer of their sales to nearby restaurants, which results in a higher baseline average unit volume for those go-forward restaurants, which also further improves restaurant level margin and profitability. It also allows us to focus our resources on our strongest restaurants, improving efficiency and drive better overall company profitability. The progress we are seeing is helping across the business and is building on itself. We create a better guest experience that is translating into consistent performance and steady growth in both comparable sales and margins. we create a better guest experience that is translating into consistent performance and steady growth in both comparable sales and margins At the same time, we have taken a disciplined look at our portfolio and how our restaurants are performing across markets. at the same time we have taken a disciplined look at our portfolio and how our restaurants are performing across markets In select areas, we had too much density, particularly as our off-premise sales continued to grow. in select areas we had too much density particularly as our off-premise sales continued to grow We made the decision to optimize our footprint. we made the decision to optimize our footprint By closing underperforming restaurants in these areas, we have seen a significant transfer of their sales to nearby restaurants, which results in a higher baseline average unit volume for those go-forward restaurants, which also further improves restaurant level margin and profitability. It also allows us to focus our resources on our strongest restaurants, improving efficiency and drive better overall company profitability. by closing underperforming restaurants in these areas we have seen a significant transfer of their sales to nearby restaurants which results in a higher baseline average unit volume for those go-forward restaurants which also further improves restaurant level margin and profitability. it also allows us to focus our resources on our strongest restaurants improving efficiency and drive better overall company profitability The progress we are seeing is helping across the business and is building on itself. the progress we are seeing is helping across the business and is building on itself We are seeing a shift in mindset across the organization, and our teams believe they can impact results. They are taking ownership, and as we continue to reinforce strong execution, winning is becoming contagious across our teams. That is what allows this momentum to sustain. As we look ahead, we will stay focused, remain disciplined, and continue executing at a high level every day. With that, I will turn it over to Mike to walk through the financial details. We are seeing a shift in mindset across the organization, and our teams believe they can impact results. we are seeing a shift in mindset across the organization and our teams believe they can impact results They are taking ownership, and as we continue to reinforce strong execution, winning is becoming contagious across our teams. they are taking ownership and as we continue to reinforce strong execution winning is becoming contagious across our teams That is what allows this momentum to sustain. that is what allows this momentum to sustain As we look ahead, we will stay focused, remain disciplined, and continue executing at a high level every day. as we look ahead we will stay focused remain disciplined and continue executing at a high level every day With that, I will turn it over to Mike to walk through the financial details. with that i will turn it over to mike to walk through the financial details

Speaker 2: Thank you, Joe. In the first quarter, our total revenue was relatively flat compared to last year at $123.8 million, with strong comp sales growth mostly offset by the closing of underperforming locations. System-wide comp restaurant sales during the first quarter increased 9.1%, including an increase of 9.4% at company-owned restaurants and an increase of 8% at franchise restaurants. Company comp traffic during the first quarter increased 4.8% and average check increased 4.4%, inclusive of 2% effective pricing during the quarter. Company average unit volumes in the first quarter increased 13.5% to $1.49 million. Thank you, Joe. thank you joe In the first quarter, our total revenue was relatively flat compared to last year at $123.8 million, with strong comp sales growth mostly offset by the closing of underperforming locations. in the first quarter our total revenue was relatively flat compared to last year at $123.8 million with strong comp sales growth mostly offset by the closing of underperforming locations System-wide comp restaurant sales during the first quarter increased 9.1%, including an increase of 9.4% at company-owned restaurants and an increase of 8% at franchise restaurants. system-wide comp restaurant sales during the first quarter increased 9.1% including an increase of 9.4% at company-owned restaurants and an increase of 8% at franchise restaurants Company comp traffic during the first quarter increased 4.8% and average check increased 4.4%, inclusive of 2% effective pricing during the quarter. company comp traffic during the first quarter increased 4.8% and average check increased 4.4% inclusive of 2% effective pricing during the quarter Company average unit volumes in the first quarter increased 13.5% to $1.49 million. company average unit volumes in the first quarter increased 13.5% to $1.49 million Our sales growth in the first quarter, which was an acceleration of the sales growth we saw in the back half of 2025, delivered impressive restaurant contribution margin growth. Our restaurant contribution margin in the first quarter increased 460 basis points to 14.9% from 10.3% in the first quarter of 2025. COGS in the first quarter were 25.4% of sales, a 120 basis point decrease from last year, which was driven by lower food waste related to new menu items, menu pricing, and lower discounting, partially offset by higher food costs associated with our new menu offerings and modest inflation. Our food inflation in the first quarter was 0.2%. Our sales growth in the first quarter, which was an acceleration of the sales growth we saw in the back half of 2025, delivered impressive restaurant contribution margin growth. our sales growth in the first quarter which was an acceleration of the sales growth we saw in the back half of 2025 delivered impressive restaurant contribution margin growth Our restaurant contribution margin in the first quarter increased 460 basis points to 14.9% from 10.3% in the first quarter of 2025. our restaurant contribution margin in the first quarter increased 460 basis points to 14.9% from 10.3% in the first quarter of 2025 COGS in the first quarter were 25.4% of sales, a 120 basis point decrease from last year, which was driven by lower food waste related to new menu items, menu pricing, and lower discounting, partially offset by higher food costs associated with our new menu offerings and modest inflation. cogs in the first quarter were 25.4% of sales a 120 basis point decrease from last year which was driven by lower food waste related to new menu items menu pricing and lower discounting partially offset by higher food costs associated with our new menu offerings and modest inflation Our food inflation in the first quarter was 0.2%. our food inflation in the first quarter was 0.2% Labor costs for the first quarter were 30.0% of sales, which was down 250 basis points to prior year, primarily due to the benefit of sales leverage and labor efficiencies, partially offset by wage inflation. Hourly wage inflation in the first quarter was 1.9%. Occupancy costs in the first quarter decreased to $10.4 million compared to $11.5 million in 2025 due to a reduction in our company-owned restaurant count over the last twelve months. Other restaurant operating costs increased by 10 basis points in the first quarter to 21.2%. The increase in other restaurant operating costs was primarily driven by a combination of higher third-party delivery fees from higher third-party delivery channel sales and higher marketing expenses, which were mostly offset by sales leverage and lower repairs and maintenance costs. Labor costs for the first quarter were 30.0% of sales, which was down 250 basis points to prior year, primarily due to the benefit of sales leverage and labor efficiencies, partially offset by wage inflation. labor costs for the first quarter were 30.0% of sales which was down 250 basis points to prior year primarily due to the benefit of sales leverage and labor efficiencies partially offset by wage inflation Hourly wage inflation in the first quarter was 1.9%. hourly wage inflation in the first quarter was 1.9% Occupancy costs in the first quarter decreased to $10.4 million compared to $11.5 million in 2025 due to a reduction in our company-owned restaurant count over the last twelve months. occupancy costs in the first quarter decreased to $10.4 million compared to $11.5 million in 2025 due to a reduction in our company-owned restaurant count over the last twelve months Other restaurant operating costs increased by 10 basis points in the first quarter to 21.2%. other restaurant operating costs increased by 10 basis points in the first quarter to 21.2% The increase in other restaurant operating costs was primarily driven by a combination of higher third-party delivery fees from higher third-party delivery channel sales and higher marketing expenses, which were mostly offset by sales leverage and lower repairs and maintenance costs. the increase in other restaurant operating costs was primarily driven by a combination of higher third-party delivery fees from higher third-party delivery channel sales and higher marketing expenses which were mostly offset by sales leverage and lower repairs and maintenance costs G&A in the first quarter was $12.5 million compared to $12.8 million in 2025. Net loss for the first quarter was $3.4 million or a loss of $0.58 per diluted share, compared to a net loss of $9.1 million or a loss of $1.58 per diluted share last year. The loss in the first quarter of 2026 included a $2.7 million non-cash impairment charge, primarily related to our decision to close underperforming restaurants. Our adjusted EBITDA in the first quarter more than tripled to $7.7 million compared to $2.4 million in the first quarter of 2025. Our first quarter capital expenditures totaled $2.1 million compared to $2.9 million in 2025. G&A in the first quarter was $12.5 million compared to $12.8 million in 2025. g&a in the first quarter was $12.5 million compared to $12.8 million in 2025 Net loss for the first quarter was $3.4 million or a loss of $0.58 per diluted share, compared to a net loss of $9.1 million or a loss of $1.58 per diluted share last year. net loss for the first quarter was $3.4 million or a loss of $0.58 per diluted share compared to a net loss of $9.1 million or a loss of $1.58 per diluted share last year The loss in the first quarter of 2026 included a $2.7 million non-cash impairment charge, primarily related to our decision to close underperforming restaurants. the loss in the first quarter of 2026 included a $2.7 million non-cash impairment charge primarily related to our decision to close underperforming restaurants Our adjusted EBITDA in the first quarter more than tripled to $7.7 million compared to $2.4 million in the first quarter of 2025. our adjusted ebitda in the first quarter more than tripled to $7.7 million compared to $2.4 million in the first quarter of 2025 Our first quarter capital expenditures totaled $2.1 million compared to $2.9 million in 2025. our first quarter capital expenditures totaled $2.1 million compared to $2.9 million in 2025 At the end of the first quarter, we had $1.4 million of available cash and our debt balance was $106.8 million, which was a reduction of $3.4 million from our debt balance at the end of 2025, as we were able to pay down debt in a seasonally low quarter. In the first quarter, we closed 20 company-owned restaurants and three franchise restaurants. The 20 company-owned restaurants were closed as a part of our restaurant portfolio optimization project, which continues to yield a significant transfer of sales to nearby locations given our high mix of off-premise sales, contributing to improvement in our comp sales and overall profitability. At the end of the first quarter, we had $1.4 million of available cash and our debt balance was $106.8 million, which was a reduction of $3.4 million from our debt balance at the end of 2025, as we were able to pay down debt in a seasonally low quarter. at the end of the first quarter we had $1.4 million of available cash and our debt balance was $106.8 million which was a reduction of $3.4 million from our debt balance at the end of 2025 as we were able to pay down debt in a seasonally low quarter In the first quarter, we closed 20 company-owned restaurants and three franchise restaurants. in the first quarter we closed 20 company-owned restaurants and three franchise restaurants The 20 company-owned restaurants were closed as a part of our restaurant portfolio optimization project, which continues to yield a significant transfer of sales to nearby locations given our high mix of off-premise sales, contributing to improvement in our comp sales and overall profitability. the 20 company-owned restaurants were closed as a part of our restaurant portfolio optimization project which continues to yield a significant transfer of sales to nearby locations given our high mix of off-premise sales contributing to improvement in our comp sales and overall profitability That said, a majority of the comp restaurant sales increase in the first quarter was driven by the improvement in our underlying business fundamentals, with our portfolio optimization providing an added benefit. Overall, we are extremely pleased with our first quarter results, which exceeded our expectations as our restaurant contribution margin and adjusted EBITDA improvements were driven by our double-digit average unit volume increases paired with effective cost management. As we reflect on the first quarter results and look forward to the rest of the year, we're raising our full year 2026 guidance to the following: Total revenue of $483 million-$498 million, including comp restaurant sales growth of 7%-10%. Restaurant contribution margin between 15.5% and 17%. That said, a majority of the comp restaurant sales increase in the first quarter was driven by the improvement in our underlying business fundamentals, with our portfolio optimization providing an added benefit. that said a majority of the comp restaurant sales increase in the first quarter was driven by the improvement in our underlying business fundamentals with our portfolio optimization providing an added benefit Overall, we are extremely pleased with our first quarter results, which exceeded our expectations as our restaurant contribution margin and adjusted EBITDA improvements were driven by our double-digit average unit volume increases paired with effective cost management. overall we are extremely pleased with our first quarter results which exceeded our expectations as our restaurant contribution margin and adjusted ebitda improvements were driven by our double-digit average unit volume increases paired with effective cost management As we reflect on the first quarter results and look forward to the rest of the year, we're raising our full year 2026 guidance to the following: Total revenue of $483 million-$498 million, including comp restaurant sales growth of 7%-10%. as we reflect on the first quarter results and look forward to the rest of the year we're raising our full year 2026 guidance to the following total revenue of $483 million-$498 million including comp restaurant sales growth of 7%-10% Restaurant contribution margin between 15.5% and 17%. restaurant contribution margin between 15.5% and 17% General and administrative expenses of $50 million-$53 million, inclusive of stock-based compensation expense of approximately $2.5 million. Depreciation and amortization expense of $24 million-$25 million. Interest expense of $10 million-$11 million. Adjusted EBITDA between $32.5 million and $37.5 million. 1 to 2 new franchise restaurant openings. Restaurant closures, 30 to 35 company-owned restaurants and 5 franchise restaurants. We estimate total 2026 capital expenditures of $9.5 million-$10.5 million. We continue to expect to be free cash flow positive and have the opportunity to reduce our debt balance in 2026 by approximately $10 million, including the $3.4 million reduction in the first quarter. For further information regarding our 2026 expectations, please see the Business Outlook section of our press release. General and administrative expenses of $50 million-$53 million, inclusive of stock-based compensation expense of approximately $2.5 million. general and administrative expenses of $50 million-$53 million inclusive of stock-based compensation expense of approximately $2.5 million Depreciation and amortization expense of $24 million-$25 million. depreciation and amortization expense of $24 million-$25 million Interest expense of $10 million-$11 million. interest expense of $10 million-$11 million Adjusted EBITDA between $32.5 million and $37.5 million. 1 to 2 new franchise restaurant openings. adjusted ebitda between $32.5 million and $37.5 million 1 to 2 new franchise restaurant openings Restaurant closures, 30 to 35 company-owned restaurants and 5 franchise restaurants. restaurant closures 30 to 35 company-owned restaurants and 5 franchise restaurants We estimate total 2026 capital expenditures of $9.5 million-$10.5 million. we estimate total 2026 capital expenditures of $9.5 million-$10.5 million We continue to expect to be free cash flow positive and have the opportunity to reduce our debt balance in 2026 by approximately $10 million, including the $3.4 million reduction in the first quarter. we continue to expect to be free cash flow positive and have the opportunity to reduce our debt balance in 2026 by approximately $10 million including the $3.4 million reduction in the first quarter For further information regarding our 2026 expectations, please see the Business Outlook section of our press release. for further information regarding our 2026 expectations please see the business outlook section of our press release With that, I'd like to turn the call back over to Joe for final remarks. With that, I'd like to turn the call back over to Joe for final remarks. with that i'd like to turn the call back over to joe for final remarks

Speaker 1: Thanks, Mike. We are very pleased with our first quarter results, reflecting in continued strong momentum at Noodles & Company, which continues into the second quarter. We are very encouraged by this momentum and remain focused on executing the fundamentals every day that are delivering better overall guest experience, as evidenced by sequential improvement in our guest satisfaction scores, sustained traffic growth, increased engagement with our guests, and more consistent in-restaurant performance. Thank you for your time today, and I'll now turn the call back over to the operator. Thanks, Mike. thanks mike We are very pleased with our first quarter results, reflecting in continued strong momentum at Noodles & Company, which continues into the second quarter. we are very pleased with our first quarter results reflecting in continued strong momentum at noodles & company which continues into the second quarter We are very encouraged by this momentum and remain focused on executing the fundamentals every day that are delivering better overall guest experience, as evidenced by sequential improvement in our guest satisfaction scores, sustained traffic growth, increased engagement with our guests, and more consistent in-restaurant performance. we are very encouraged by this momentum and remain focused on executing the fundamentals every day that are delivering better overall guest experience as evidenced by sequential improvement in our guest satisfaction scores sustained traffic growth increased engagement with our guests and more consistent in-restaurant performance Thank you for your time today, and I'll now turn the call back over to the operator. thank you for your time today and i'll now turn the call back over to the operator

Speaker 3: Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you would like to ask a question, please press star then one on your touch tone phone. You will hear a confirmation tone to indicate that you have joined the queue. If you decide to withdraw the question, please press star and then two to remove yourself from the list. Again, if you would like to ask a question, please press star and then one now. The first question that we have comes from Todd Brooks of Benchmark Company. Please go ahead. Thank you, sir. thank you sir Ladies and gentlemen, we will now begin the question-and-answer session. ladies and gentlemen we will now begin the question-and-answer session If you would like to ask a question, please press star then one on your touch tone phone. if you would like to ask a question please press star then one on your touch tone phone You will hear a confirmation tone to indicate that you have joined the queue. you will hear a confirmation tone to indicate that you have joined the queue If you decide to withdraw the question, please press star and then two to remove yourself from the list. if you decide to withdraw the question please press star and then two to remove yourself from the list Again, if you would like to ask a question, please press star and then one now. again if you would like to ask a question please press star and then one now The first question that we have comes from Todd Brooks of Benchmark Company. the first question that we have comes from todd brooks of benchmark company Please go ahead. please go ahead

Speaker 4: Hey, guys. Congratulations and thanks for taking a few questions here. Appreciate it. Hey, guys. hey guys Congratulations and thanks for taking a few questions here. congratulations and thanks for taking a few questions here Appreciate it. appreciate it

Speaker 1: Thank you, Todd. Thank you, Todd. thank you todd

Speaker 2: Thanks, Todd. Thanks, Todd. thanks todd

Speaker 4: Mike, you had, you kinda quantified the same store sales in Q1 as majority driven by kinda fundamental business improvements and the momentum in the business. I think last quarter you kinda parsed out the sales transfer contribution versus the contribution from the fundamental improvements. Is that something you'll do this quarter as well? Mike, you had, you kinda quantified the same store sales in Q1 as majority driven by kinda fundamental business improvements and the momentum in the business. mike you had you kinda quantified the same store sales in q1 as majority driven by kinda fundamental business improvements and the momentum in the business I think last quarter you kinda parsed out the sales transfer contribution versus the contribution from the fundamental improvements. i think last quarter you kinda parsed out the sales transfer contribution versus the contribution from the fundamental improvements Is that something you'll do this quarter as well? is that something you'll do this quarter as well

Speaker 2: You mean for the second quarter? Is that the same method for the second quarter? You mean for the second quarter? you mean for the second quarter Is that the same method for the second quarter? is that the same method for the second quarter

Speaker 4: Well, well, no, for same store sales, I'm just wondering what came from the contribution from closed locations versus? Well, well, no, for same store sales, I'm just wondering what came from the contribution from closed locations versus? well well no for same store sales i'm just wondering what came from the contribution from closed locations versus

Speaker 2: Oh. Oh. oh

Speaker 4: Just the core business. Just the core business. just the core business

Speaker 2: Yeah, we talked about 200-300 basis points, a few weeks ago during our Q4 call, and that's about where we landed, right in the middle of that, about 250 basis points attributable to the closed locations. You know, most of the benefit was due to core business improvement, which is really encouraging to see. Yeah, we talked about 200-300 basis points, a few weeks ago during our Q4 call, and that's about where we landed, right in the middle of that, about 250 basis points attributable to the closed locations. yeah we talked about 200-300 basis points a few weeks ago during our q4 call and that's about where we landed right in the middle of that about 250 basis points attributable to the closed locations You know, most of the benefit was due to core business improvement, which is really encouraging to see. you know most of the benefit was due to core business improvement which is really encouraging to see

Speaker 4: Yeah, it's fantastic. Then it sounds silly 'cause the same store sales are so strong, but did you guys have any winter weather-related impact that muted results in the first quarter that you would call out? Yeah, it's fantastic. yeah it's fantastic Then it sounds silly 'cause the same store sales are so strong, but did you guys have any winter weather-related impact that muted results in the first quarter that you would call out? then it sounds silly 'cause the same store sales are so strong but did you guys have any winter weather-related impact that muted results in the first quarter that you would call out

Speaker 2: Just timing between the periods, but overall, we feel like it, you know, kinda washed out and wasn't a big impact for the quarter. Just timing between the periods, but overall, we feel like it, you know, kinda washed out and wasn't a big impact for the quarter. just timing between the periods but overall we feel like it you know kinda washed out and wasn't a big impact for the quarter

Speaker 4: Okay, great. Joe, you talked about the introduction of a boost week. I was wondering kind of the, is this something you're gonna tease for customers ahead of time, or is it something you're gonna drop on them kinda? What's the strategy for how this rolls out quarter after quarter? Okay, great. okay great Joe, you talked about the introduction of a boost week. joe you talked about the introduction of a boost week I was wondering kind of the, is this something you're gonna tease for customers ahead of time, or is it something you're gonna drop on them kinda? i was wondering kind of the is this something you're gonna tease for customers ahead of time or is it something you're gonna drop on them kinda What's the strategy for how this rolls out quarter after quarter? what's the strategy for how this rolls out quarter after quarter

Speaker 1: Yeah, great question, Todd. That's a strategy around our reward members, so it's offered to them, and it's also offered to other guests once they sign up for our reward activity. It's something that attracts new guests to our app as well as our existing guests to give them a great promotion. With the results we saw, it's something that we're gonna continue throughout the year. Yeah, great question, Todd. yeah great question todd That's a strategy around our reward members, so it's offered to them, and it's also offered to other guests once they sign up for our reward activity. that's a strategy around our reward members so it's offered to them and it's also offered to other guests once they sign up for our reward activity It's something that attracts new guests to our app as well as our existing guests to give them a great promotion. it's something that attracts new guests to our app as well as our existing guests to give them a great promotion With the results we saw, it's something that we're gonna continue throughout the year. with the results we saw it's something that we're gonna continue throughout the year

Speaker 4: Okay. I assume that you would stagger that with the new LTO rolling out today. It wouldn't be something we would see until later in the quarter then, the boost week? Okay. okay I assume that you would stagger that with the new LTO rolling out today. i assume that you would stagger that with the new lto rolling out today It wouldn't be something we would see until later in the quarter then, the boost week? it wouldn't be something we would see until later in the quarter then the boost week

Speaker 1: Correct. It's specific weeks of the year outside of our existing LTO. Correct. correct It's specific weeks of the year outside of our existing LTO. it's specific weeks of the year outside of our existing lto

Speaker 4: Okay, great. You talked about the second quarter LTO. I know last quarter, you had some additional items when you were running the sauté. You added the ramen back in. Are there any other kind of add-ins to this LTO, or is it going to be this dish standing on its own through the quarter? Okay, great. okay great You talked about the second quarter LTO. you talked about the second quarter lto I know last quarter, you had some additional items when you were running the sauté. i know last quarter you had some additional items when you were running the sauté You added the ramen back in. you added the ramen back in Are there any other kind of add-ins to this LTO, or is it going to be this dish standing on its own through the quarter? are there any other kind of add-ins to this lto or is it going to be this dish standing on its own through the quarter

Speaker 1: Just the partnership that we are with Cravings with Chrissy Teigen, and getting the benefit of all her followers, as well as a new treat to put it in the bundle. We are standing on our LTO for this quarter, and with other new news coming up in the remainder of the year. Just the partnership that we are with Cravings with Chrissy Teigen, and getting the benefit of all her followers, as well as a new treat to put it in the bundle. just the partnership that we are with cravings with chrissy teigen and getting the benefit of all her followers as well as a new treat to put it in the bundle We are standing on our LTO for this quarter, and with other new news coming up in the remainder of the year. we are standing on our lto for this quarter and with other new news coming up in the remainder of the year

Speaker 4: Okay, a final one for me, and thanks for being patient with all the questions. Mike, I think you talked about check being up 4.4%. Can you break that down between price and mix? Okay, a final one for me, and thanks for being patient with all the questions. okay a final one for me and thanks for being patient with all the questions Mike, I think you talked about check being up 4.4%. mike i think you talked about check being up 4.4% Can you break that down between price and mix? can you break that down between price and mix

Speaker 2: Yeah, we had about 2% price for the quarter, and that's really our expectation for the full year 2026, with the rest coming from mix. The mix benefit we've been seeing for a couple of quarters now as we've had the new menu items, which have a little higher price point. Also the strength of our delivery channel is pushing the check up a bit as well. Yeah, we had about 2% price for the quarter, and that's really our expectation for the full year 2026, with the rest coming from mix. yeah we had about 2% price for the quarter and that's really our expectation for the full year 2026 with the rest coming from mix The mix benefit we've been seeing for a couple of quarters now as we've had the new menu items, which have a little higher price point. the mix benefit we've been seeing for a couple of quarters now as we've had the new menu items which have a little higher price point Also the strength of our delivery channel is pushing the check up a bit as well. also the strength of our delivery channel is pushing the check up a bit as well

Speaker 4: Okay, great. Congrats again, guys. Really, really good stuff here. Okay, great. okay great Congrats again, guys. congrats again guys Really, really good stuff here. really really good stuff here

Speaker 1: Thank you, Todd. Thank you, Todd. thank you todd

Speaker 2: Thanks so much, Todd. Thanks so much, Todd. thanks so much todd

Speaker 3: Thank you. Ladies and gentlemen, that then concludes today's conference call. Thank you for joining us. You may now disconnect your lines. Thank you. thank you Ladies and gentlemen, that then concludes today's conference call. ladies and gentlemen that then concludes today's conference call Thank you for joining us. thank you for joining us You may now disconnect your lines. you may now disconnect your lines