Noodles & Company looks at closing more under-performing restaurants

DENVER BUSINESS JOURNAL - Weighed down by another quarterly drop in same-store sales, Noodles & Company (Nasdaq: NDLS) says it will consider closing some of its under-performing stores or converting company-owned restaurants to franchised properties where local operators may be better equipped to turn them around.

Comparable restaurant sales fell for the fifth consecutive quarter, interim CEO Dave Boennighausen said during the Broomfield-based restaurant chain’s quarterly earnings call — this time by 0.7 percent from the third quarter of 2015. While revenue rose 4.6 percent to $122.7 million for the 528-store fast-casual chain, Noodles reported an adjusted net loss of $1.1 million or 4 cents per diluted share.

To turn its fortunes around, the restaurant will make several changes to its menu, Boennighausen explained. Last month, it eliminated sandwiches and “buff bowls” in which its signature pasta was replaced with rice. It’s begun testing new menu items including green curry and beef bolognese.

And Noodles also is testing the addition of oven-roasted tomatoes, more flavorful sauces and higher-quality ingredients.

Read more at the Denver Business Journal: http://bit.ly/2fjJ5Ii

Copyright 2016 Denver Business Journal


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