Noodles & Company

Financing

Noodles & Company's turnaround explained: They're running restaurants better

The fast-casual chain's same-store sales were up more than 9% in the first quarter. Closing bad units helped. But CEO Joe Christina said turnaround efforts really are working.

Operations

Noodles & Company's store closures are boosting the restaurants that remain

The fast-casual chain's traffic is up more than 4% in the first quarter, reflecting accelerated momentum from the end of last year. Shedding weaker units is paying off.

The fast-casual chain showed continued momentum in the fourth quarter. But the company said it plans to cull more underperforming units this year to focus on those with the strongest performance.

The Bottom Line: Galloway Capital Partners is urging Noodles & Company to sell off company stores to pay off debt. Eliminating leverage is good. Selling company stores less so.

Four executives, including CEO Joe Christina, could get bonuses if the fast-casual noodle chain finds a buyer or if the board of directors is overhauled in a proxy fight.

Improving trends through 3Q brought positive traffic in October for the struggling fast-casual chain. CEO Joe Christina said a focus on value and bolder flavors is driving in guests.

The former chief concept officer for fast-casual Noodles is working again with Ron Shaich, former CEO of Panera Bread, where Davis worked for nearly three decades.

The fast-casual chain's board has initiated a review of strategic alternatives, including a possible sale. The move comes amid a CEO transition and an attempted menu overhaul.

Restaurants are downsizing portions to meet consumers’ desire for lower prices, greater variety and healthier eating.

Outgoing CEO Drew Madsen has shepherded a reimagining of the fast-casual chain's food offerings for two years. But what tested well last year is meeting a new reality.

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