Noodles & Company’s share price has rebounded above $1 since releasing its preliminary fourth quarter results earlier this month, potentially bringing it back into compliance with the Nasdaq stock market’s rules.
The fast-casual noodle chain based in Broomfield, Colo., received a delisting warning from the exchange in late December after its share price had been below the minimum bid price requirement of $1 per share for more than 30 consecutive business days.
Noodles shared the results for the quarter ended Dec. 31 on Jan. 13 in advance of the annual ICR conference, reporting an 0.8% increase in same-store sales, flat year-over-year average unit volumes of $1.3 million, and a 5.6% increase in digital sales for the quarter. Those were marked improvements over Q3 of 2024, when same-store sales fell by 3.3% amid a traffic decline of 5.8% and AUVs of $1.27 million.
It took a while for Wall Street to respond to the preliminary results. In fact, Noodles’ share price dipped from 69 cents on Jan. 13 to 63 cents on the 14th before rebounding and eventually passing the $1 mark on Jan. 22, closing at $1.09. It closed at the same price on Jan. 23. The price must stay at $1 or above for 10 consecutive days to return to Nasdaq compliance.
In announcing the preliminary results for the 460-unit chain, chief executive officer Drew Madsen said in a statement, “Looking ahead, we believe we have positioned the company to capitalize on the significant opportunities ahead. Our comprehensive menu transformation is progressing as planned, and we continue to drive traffic through our digital channels and expansive loyalty program. In addition, by strategically reducing our planned capital expenditures in 2025, we believe we are well-positioned to improve the strength of our balance sheet. Overall, we are pleased with the fourth quarter recovery of our sales and traffic performance and believe we have a strong foundation to begin 2025."
Noodles & Company has been struggling since early 2023, when traffic began to decline after raising its prices. Since then it has been working on operational efficiencies under Madsen, who replaced Dave Boennighausen in late 2023, and a menu revamp that it plans to roll out later this year.
Contact Bret Thorn at [email protected]
