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Noodles & Company (NASDAQ:NDLS) disclosed Wednesday that it received a notification from the Nasdaq Stock Market indicating the company is not in compliance with Nasdaq Listing Rule 5450(a)(1), which requires listed securities to maintain a minimum closing bid price of $1.00 per share.
According to the company’s statement, the notice was received on Tuesday after the closing bid price of Noodles & Company’s common stock remained below $1.00 for 30 consecutive business days. The notification does not immediately affect the listing or trading of the company’s shares on the Nasdaq Global Select Market.
Under Nasdaq Listing Rule 5810(c)(3)(A), Noodles & Company has 180 calendar days, until December 22, 2025, to regain compliance. To do so, the company’s stock must close at or above $1.00 per share for at least ten consecutive business days during this period, unless Nasdaq exercises its discretion to extend the requirement.
If the company does not regain compliance by the end of the 180-day period, it may be eligible for an additional 180-day compliance period if it transfers its listing to the Nasdaq Capital Market and meets all other applicable initial listing standards, aside from the minimum bid price. If Nasdaq determines that Noodles & Company will not be able to cure the deficiency or is not eligible for the additional compliance period, the company’s common stock would be subject to delisting. The company may appeal any delisting determination.
Noodles & Company stated that it intends to monitor the closing bid price of its common stock and consider all available options to regain compliance, including the possibility of proposing a reverse stock split for shareholder approval if necessary. The company noted there is no assurance that it will be able to regain compliance within the allowed period.
This information is based on a press release statement contained in the company’s recent SEC filing.
In other recent news, Noodles & Company reported a net loss per share of $0.20 for the first quarter of 2025, missing analyst expectations of a $0.11 loss. Despite the earnings miss, revenue increased by 2% to $123.8 million, surpassing forecasts. The company experienced a net loss of $9.1 million, with adjusted EBITDA declining to $2.4 million from $5.5 million in the same period last year. In the annual shareholder meeting, several key decisions were made, including the re-election of three Class III directors and the approval of executive compensation on an advisory basis. Shareholders also favored an annual review for future votes on executive compensation. Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 30, 2025. A stockholder proposal regarding simple majority voting requirements was not approved. Additionally, Noodles & Company plans to open two new company-owned restaurants in 2025 while closing several others, aiming for $5 million in cost savings.
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