This popular restaurant chain has struggled over the last few years with declining sales and dozens of closures. Now, the company may be reaching a tipping point, as it has begun exploring a possible sale.

Noodles & Company announced that it is reviewing “strategic alternatives” to maximize shareholder value. The options under consideration include refinancing, refranchising, or even selling the business.

No timeline has been set for completing the review, and there is no guarantee that it will result in a transaction. Noodles & Company also said it will not provide further updates unless necessary, but did confirm that the financial services firm Piper Sandler will advise on the process. 

“As we navigate through the evolving consumer landscape, our team has been working hard to optimize our recent menu transformation initiative, including strengthening our value proposition through successful initiatives,” said Noodles & Company CEO Joe Christina in the announcement. “We believe now is the appropriate time to consider strategic options for our brand that could allow us to more effectively maximize value for our shareholders,” Christina added.

Noodles & Company launches a menu revamp to win back customers

In March 2025, Noodles & Company  (NDLS)  launched a major menu revamp, adding new dishes and improving fan-favorites to win back customers.

This menu transformation initially resonated well with consumers. In the first quarter of 2025, total revenues were up 2% compared to the prior year, and same-store sales increased 4.4% systemwide.

Despite the positive momentum, Noodles & Company announced plans in May to close 21 of its more than 450 restaurants in 2025, including around 13 to 17 company-owned and four franchise locations. The chain attributed these closures to higher food costs and increased marketing expenses.

Related: 64-year-old retailer closing 291 stores after Chapter 11 bankruptcy

This surprising decision became clearer after its second-quarter earnings revealed a 0.7% revenue decline. The company attributed the disappointing results to evolving consumer habits and a value-conscious spending environment driven by economic uncertainty, which slowed restaurant traffic as customers prioritized affordability. 

“Our sales and traffic moderated after the initial successful rollout of our new menu due to the strong value-conscious climate as well as slower guest adoption of the upgrades made to some of our historic menu items. We have been moving decisively to address these factors, particularly around guest value perception,” said former Noodles & Company CEO Drew Madsen in a statement.

Noodles & Company re-addresses its new menu to adapt to shifting consumer habits

Anticipating these challenges, Noodles & Company conducted a survey to guide its new strategy. The results showed that nearly half of the respondents preferred a small entrée paired with a side, and more than 75% said price and value are top priorities when dining out.

In response, the company launched Delicious Duos on July 30, a new combo platform offering a small entrée with protein and a side starting at $9.95.

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This initiative quickly boosted results. Noodles & Company revealed that the Delicious Duos contributed to a positive comparable sales performance of 4.5% in August alone.

Still, the restaurant closings persisted, with six company-owned restaurants and two franchise restaurants shuttering during the quarter. 

Noodles & Company receives two delisting warnings as challenges mount

In June 2025, Nasdaq notified Noodles & Company that it had failed to maintain the minimum $1 per share requirement for more than 30 consecutive trading days. The warning came just six months after a similar notice in December 2024.

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As of September 4, Noodles & Company’s shares closed at $0.69, down more than 54% over the past year.

Noodles & Company’s decision to launch a strategic review highlights the seriousness of its challenges. It may be a way to avoid having to close more locations or even make a harsher move. 

Related: Popular restaurant announces more closures despite rising sales