Noodles & Company (NDLS), DND Group Partner to Expand in Oregon

Core Viewpoint - Noodles & Company is focusing on expansion in the Pacific Northwest through a multi-unit franchise agreement with DND Group Inc., which includes acquiring six existing locations and opening ten new restaurants in the Portland area [1] Expansion Initiatives - The company aims to grow its franchise presence in southern and southeastern markets, specifically targeting Alabama, Florida, Georgia, Texas, and Oklahoma in 2024 [2] - In fiscal 2023, Noodles & Company opened 18 company-owned restaurants, bringing the total to 470 restaurants system-wide as of January 2, 2024, which includes 380 company-owned and 90 franchise restaurants [2] - For fiscal 2024, the company plans to open 10-12 company-owned restaurants and up to three franchise-owned restaurants [2] Price Performance - Year-to-date, shares of Noodles & Company have decreased by 60.3%, contrasting with a 1.5% decline in the Retail - Restaurants industry [3] - The decline in comparable restaurant sales due to lower guest traffic, along with increased costs and expenses, has negatively impacted the company's performance [3] Growth Potential - Despite current challenges, the company's expansion initiatives, digital capabilities, and focus on menu transformation are expected to support growth momentum [4] - For fiscal 2024, Noodles & Company anticipates comparable restaurant sales growth to be between flat and 3% year-over-year [4]