Noodles & Co regains Nasdaq compliance with bid price

BROOMFIELD, CO - Noodles & Company (NASDAQ:NDLS), a fast-casual restaurant chain, has regained compliance with the Nasdaq’s minimum bid price requirement, the company announced on Thursday. The restaurant operator, which had been previously warned about a potential delisting due to its stock price falling below $1.00 for 30 consecutive business days, has seen its share price recover to $1.61, marking a significant 10.3% gain over the past week.

On December 24, 2024, Noodles & Company was notified by the Nasdaq Listing Qualifications Department of the non-compliance with the rule that requires the bid price of a company’s common stock to close above $1.00 per share. The company was given 180 days to address the issue and meet the exchange’s minimum bid price requirement.

As of February 5, 2025, the company successfully increased its common stock’s bid price to close above the $1.00 threshold, thereby complying with Nasdaq Listing Rule 5450(a)(1). The Nasdaq staff confirmed the company’s return to compliance and has since closed the matter.

This development follows a challenging period for the restaurant industry, which has faced significant headwinds in recent years. Noodles & Company’s ability to lift its stock price and maintain its listing on the Nasdaq Global Select Market is a positive step for the company.

Mike Hynes, the Chief Financial Officer of Noodles & Company, signed off on the report filed with the SEC, confirming the company’s regained compliance. The report, based on a press release statement, marks the end of concerns regarding the company’s Nasdaq listing status.

In other recent news, Noodles & Company is facing potential delisting from the Nasdaq Global Select Market due to non-compliance with the minimum closing bid price requirement. The company has been granted a grace period to regain compliance. Noodles & Co is also exploring options to address this issue, including a possible reverse stock split.

In the financial realm, Noodles & Company reported a year-over-year decrease in total revenue by 4.0% in Q3 2024, totaling $122.8 million. Despite these challenges, the company is implementing strategies such as menu transformation and digital sales optimization to improve its financial standing.

In addition, Noodles & Company has revised its full-year revenue guidance to between $487 million and $495 million, with negative comparable restaurant sales of between 3% and 1.5%. The company also reported a net loss of $6.8 million for the quarter, impacted by inflation, increased marketing costs, and delivery fees.

These are recent developments in the company’s ongoing efforts to navigate a challenging consumer environment and achieve positive free cash flow by 2025.

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