Noodles & Company Receives Delisting Warning from Nasdaq
Noodles & Company announced this week that it’s in danger of being delisted from the Nasdaq Stock Market.
The fast casual was informed by Nasdaq that it is not in compliance with the minimum bid price requirement, which requires a minimum closing bid price of $1 per share. Noodles closed at 58 cents per share on Tuesday. The company has been below $1 per share since early November.
The company has 180 calendar days, until June 23, to regain compliance. The stock price must remain at or above $1 for 10 consecutive business days.
Noodles has struggled to find its footing in the post-COVID environment. In November 2023, the brand announced it parted ways with Dave Boennighausen after six and a half years as CEO and 19 and a half years with the company. That year, same-store sales dropped 1.9 percent and total revenue decreased 1.2 percent.
Boennighausen was replaced by Drew Madsen, a former Panera executive and board member of Darden Restaurants. He hopes to lead a comeback with five strategic priorities—improving operations; overhauling food and beverage offerings; elevating digital traffic; sustaining growth in catering, and bolstering financial stability through proactive cash management and heightened operational efficiency.
In October, the chain announced a multi-phase menu transformation by introducing three new dishes nationwide—Crispy Chicken Bacon Alfredo, Lemon Garlic Shrimp Scampi, and Chipotle Chicken Cavatappi. Noodles also released a new specialty Mac & Cheese menu with Buffalo Chicken Ranch Mac & Cheese, Garlic Bacon Crunch Mac & Cheese, and Pulled Pork BBQ Mac & Cheese. More flavors and ingredients are planned throughout 2025.
So far, Madsen’s tenure has seen mixed results. Systemwide comps fell 5.4 percent in Q1, rose 2 percent in Q2, and decreased 3.3 percent in Q3. In August, Noodles said it identified roughly 20 underperforming restaurants that may close. Combined, these units account for annual contribution losses of around $2 million.
Noodles finished Q3 with 471 restaurants nationwide, 377 of which were company-owned.
