Noodles & Company, slated to close several dozen restaurants this year, has kicked off a strategic review that includes possibly selling all or part of its business.
The Broomfield, Colorado-based chain, which has roughly 450 fast-casual eateries, said Wednesday it’s exploring a menu of options, including refinancing existing indebtedness, refranchising, other strategic or financial transactions, as well as a sale. The company has not set a deadline or definitive timetable to complete its review.
Last month, Noodles & Company unveiled plans to close from 28 to 32 company-owned restaurants this year. It expects to shut another 12 to 17 locations next year.
With consumers pinching pennies when it comes to dining out, some restaurant chains are tightening their belts, in part, by closing underperforming locations. For the second quarter, Noodles & Company reported its total revenue decreased 0.7%, to $126.4 million from $127.4 million in the prior-year period.
The chain, serving up noodle-based dishes from around the world, has made menu updates that contributed to a strong comparable-restaurant sales performance of positive 4.5% in August, according to Noodles & Company President and CEO Joe Christina. Now is the time for the chain to chart a course ahead, he said in a statement.
For the record
Noodles & Company has retained Piper Sandler as its financial adviser to assist in its review.