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Noodles & Company announced a reverse stock split to increase the price of individual shares.
On June 24, 2025, the fast-casual noodle chain did not comply with the rules of the Nasdaq Stock Market, where its stock is listed, when its stock price was below $1 for 30 consecutive business days. Compliance cannot be restored until December 22, 2025.
In a Dec. 12 filing with the Securities and Exchange Commission, Noodles & Company announced its plan for a reverse stock split and said it would request a deadline extension.
The reverse stock split plan is subject to shareholder approval. Stockholders who owned the company’s stock as of December 19, 2025 are eligible to vote by proxy or at the stockholder meeting on February 4, 2026.
A reverse stock split combines shares, reducing the total number of shares but increasing the value of the shares. The company’s board gave itself wide leeway in the size of the reverse split — ranging from 1-for-2 to 1-for-15. It must carry out the division within one year of the vote. It can also choose not to execute it.
In September, Noodles hired financial services firm Piper Sandler as an adviser to explore options to maximize shareholder value, including selling the company.
The June 24 notice is the second delisting warning Noodles & Company has received in a year. The company had received a similar warning on December 24, 2024. The share price then rose again, bringing it back into compliance, and then again in violation.
Shares closed at 73 cents on Friday.
The low stock price has drawn the attention of activist investor Galloway Capital Partners, which owns about 6.01% of the company, and has urged Noodles & Company to sell most of its restaurants.
Headquartered in Broomfield, Colorado, Noodles & Company had 349 company-operated restaurants and 86 franchised locations as of September 30.
Contact Bret Thorn: bret.thorn@informa.com
Follow him on TikTok and Instagram: @foodwriterdiary
