Brace yourself, pasta lovers—Noodles & Company, a Colorado-based Italian chain, is facing a financial reckoning that could reshape its footprint across America.
According to The Sun, US, this beloved quick-service restaurant, known for its affordable pasta combos, is shuttering over 30 locations by the end of 2025, with more closures on the horizon, amid mounting losses and leadership changes.
Founded in 1995, Noodles & Company has grown to over 450 locations nationwide, offering signature dishes like the "delicious duo"—a small entree, protein, and side for just $9.95.
But growth hasn’t translated to stability. The company reported a staggering net loss of $17.6 million in its latest earnings release, up from a $13.6 million loss the prior year.
Revenue also slipped by 0.7%, dropping from $127.4 million to $126.4 million. These numbers paint a grim picture for a chain once seen as a fast-casual darling.
Declining sales aren’t the only issue. Leadership has pointed to slower guest adoption of menu updates and a value-conscious consumer climate as key hurdles.
The response has been drastic. Noodles & Company announced on August 14, 2025, that 28 to 32 company-owned restaurants will close by year-end, a sharp increase from an earlier estimate of 21 back in May.
That’s on top of nine closures in 2024 and plans for 17 to 21 more in 2025. Looking to 2026, up to 17 additional locations will shutter, though two new ones are slated to open.
Frugality matters now—for both the company and its customers. These cuts reflect a brutal reality: even popular chains can’t outrun poor financials in a tight economy.
Desperate for a turnaround, Noodles & Company rolled out a new menu in spring 2025, featuring bold dishes like Buffalo & Cheese pasta and Cajun Shrimp Fettuccine. The hope was to lure diners back with premium ingredients and fresh flavors.
Early results showed promise—comparable sales rose by about 5% a month after the launch. But sustained traction remains elusive in a competitive market. At the top, change is afoot. CEO Drew Madsen is stepping down, passing the reins to COO Joe Christiana, signaling a pivot in strategy.
Outgoing CEO Madsen framed the menu updates as a bold move, noting they aimed to “elevate flavor” and attract new customers. But he admitted challenges around “guest value perception” persist.
Noodles isn’t alone in this storm. Chains like Denny’s (up to 150 closures), Red Lobster (over 100), TGI Friday’s (30), and Applebee’s (20 to 35) are also slashing locations in 2025, while bankruptcies and restructurings plague the sector.
For investors and savers, this is a stark reminder: even household names aren’t immune to economic headwinds. Diversify your portfolio, keep cash reserves, and watch consumer trends—hospitality is a canary in the coal mine for broader market shifts.