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Why Shares Of Noodles & Co. (NDLS) Are Down So Much Today
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Shares of Noodles & Company (NDLS - Free Report) were sliding Tuesday morning, trading around 18% lower at 9 AM ET. NDLS announced Monday that Kevin Reddy is stepping down as CEO and chairman, effective immediately.
The company’s board of directors has appointed Robert Hartnett as chairman, and Dave Boennighausen, currently Noodles & Co.’s chief financial officer, as interim CEO. The board’s started a search for external and internal candidates for a permanent executive, NDLS said in a statement.
In a statement issued by Noddles & Co. for Reddy, he stated, “After many years with this great company, I have decided that it is the right time in my career to pursue new personal and financial opportunities. I am honored to have worked with a remarkable team that has successfully positioned Noodles & Company as a unique brand and achieved significant growth to bring the concept to over 60 million guests across the country”.
Reddy has been at Noodles & Co. since 2005, after leaving Chipotle Mexican Grill Inc. (CMG - Free Report) , where he served as COO. He was named Noodles & Co.’s CEO in 2006, and Chairman in 2008.
Also in the statement, the company said it was forecasting its comparable-store sales will have fallen 1% systemwide in the second quarter. Noodles & Co. also said it expects quarterly revenue of $121 million. The most recent Zacks Consensus Estimate for revenue stands at $125.31 million.
Noodles & Co. was also one of several restaurants that was downgraded from Jeffries from “buy” to “hold”, citing too much capacity and a tight labor market. Other restaurants that were downgraded by the firm include Red Robin Gourmet Burgers (RRGB - Free Report) and Fiesta Restaurant Group .
Bottom Line
Noodles & Co. is currently a Zacks Rank #4 (Sell) stock, and shares of the company are down nearly 12% year-to-date. The company’s CEO resigning adds another headache for the company, as just in the beginning of July NDLS reported that 28 of its restaurants experienced a data breach, where customer credit and debit card information was likely stolen. The malware behind the breach was active at the locations between January 31st 2016 and June 2nd 2016.
It seems like Noodles & Co. is dealing with several issues all at once, but with several months left in 2016, the company could find a new CEO soon that could turn things around. It will have to be seen, but hopefully for the sake of the company and its investors, Noodles & Co. can figure out its problems and finish 2016 on a high note.
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Why Shares Of Noodles & Co. (NDLS) Are Down So Much Today
Shares of Noodles & Company (NDLS - Free Report) were sliding Tuesday morning, trading around 18% lower at 9 AM ET. NDLS announced Monday that Kevin Reddy is stepping down as CEO and chairman, effective immediately.
The company’s board of directors has appointed Robert Hartnett as chairman, and Dave Boennighausen, currently Noodles & Co.’s chief financial officer, as interim CEO. The board’s started a search for external and internal candidates for a permanent executive, NDLS said in a statement.
In a statement issued by Noddles & Co. for Reddy, he stated, “After many years with this great company, I have decided that it is the right time in my career to pursue new personal and financial opportunities. I am honored to have worked with a remarkable team that has successfully positioned Noodles & Company as a unique brand and achieved significant growth to bring the concept to over 60 million guests across the country”.
Reddy has been at Noodles & Co. since 2005, after leaving Chipotle Mexican Grill Inc. (CMG - Free Report) , where he served as COO. He was named Noodles & Co.’s CEO in 2006, and Chairman in 2008.
Also in the statement, the company said it was forecasting its comparable-store sales will have fallen 1% systemwide in the second quarter. Noodles & Co. also said it expects quarterly revenue of $121 million. The most recent Zacks Consensus Estimate for revenue stands at $125.31 million.
Noodles & Co. was also one of several restaurants that was downgraded from Jeffries from “buy” to “hold”, citing too much capacity and a tight labor market. Other restaurants that were downgraded by the firm include Red Robin Gourmet Burgers (RRGB - Free Report) and Fiesta Restaurant Group .
Bottom Line
Noodles & Co. is currently a Zacks Rank #4 (Sell) stock, and shares of the company are down nearly 12% year-to-date. The company’s CEO resigning adds another headache for the company, as just in the beginning of July NDLS reported that 28 of its restaurants experienced a data breach, where customer credit and debit card information was likely stolen. The malware behind the breach was active at the locations between January 31st 2016 and June 2nd 2016.
It seems like Noodles & Co. is dealing with several issues all at once, but with several months left in 2016, the company could find a new CEO soon that could turn things around. It will have to be seen, but hopefully for the sake of the company and its investors, Noodles & Co. can figure out its problems and finish 2016 on a high note.
NOODLES & CO Price
NOODLES & CO Price | NOODLES & CO Quote
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