Noodles & Company Explores Options to Enhance Shareholder Returns
Noodles & Company Initiates Strategic Review
Noodles & Company today announced an important initiative regarding its future direction. The company is currently undertaking a review of strategic alternatives aimed at maximizing shareholder value. This decision has been made by the Board of Directors and underscores the company's commitment to its investors.
Strategic Alternatives Under Consideration
The strategic alternatives being examined include a variety of options such as refinancing existing debt, refranchising portions of the business, or the sale of some or all assets. The goal is to identify the most effective strategy that aligns with the company's long-term vision and elevates its market position.
Comments from Leadership
Joe Christina, the President and CEO of Noodles & Company, shared insights on the current landscape. He stated, "As we navigate through the evolving consumer landscape, our team has been diligently working on optimizing our recent menu transformations. We have initiatives in place, like our Delicious Duos platform, that have positively impacted our comparable restaurant sales by 4.5% in the last month. We believe this is the right moment to evaluate strategic options for enhancing shareholder value especially as we continue focusing on our core business.”
Future Goals for the Brand
As Noodles & Company assesses potential strategic options, it remains focused on executing its strategic priorities. The company is dedicated to establishing itself as the premier choice for comfort food cravings, appealing to a broad customer base with its innovative menu and competitive pricing.
Timeline for Strategic Review
While the review is set in motion, the company has not established a specific deadline for its completion. There is a recognition that this process may not result in any immediate transactions, and the company plans to provide updates when necessary. Stakeholders are urged to remain patient as the Board closely examines all possible avenues.
Financial Advisory Support
To assist in this strategic evaluation, Noodles & Company has engaged Piper Sandler as its financial advisor. Their expertise is expected to provide valuable insights and support throughout this exploration phase.
Understanding Comparable Restaurant Sales
For stakeholders interested in the company's financial performance, it’s key to grasp that comparable restaurant sales reflect the year-over-year growth for restaurants that have been operational for at least eighteen months. This metric excludes new openings and offers a clear picture of how existing locations are performing based on traffic and spending habits.
About Noodles & Company
Noodles & Company has been serving distinctive, made-to-order noodle dishes since its inception in 1995. The company is committed to providing an exciting menu that balances indulgence with variety, catering to diverse culinary preferences. With around 450 restaurants nationwide and a dedicated team of about 7,000 employees, Noodles & Company continues to innovate while celebrating its commitment to quality and customer satisfaction.
To discover more about their offerings or find a restaurant nearby, feel free to visit www.noodles.com.
Frequently Asked Questions
What prompted Noodles & Company to explore strategic alternatives?
The exploration was prompted by the desire to maximize shareholder value in a changing consumer market.
What are some potential strategies being considered?
Strategies include refinancing debt and potentially refranchising or selling business segments.
Is there a specific timeline for the strategic review?
Currently, no definitive timeline has been established for the review completion.
Who is advising Noodles & Company during this process?
Piper Sandler has been retained as the financial advisor to assist in this strategic review.
How has Noodles & Company been performing recently?
Recently, the company reported a 4.5% increase in comparable restaurant sales, indicating positive performance trends.
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