News

Noodles & Co announces repurchase plan

Noodles & Company has approved a share repurchase program to allow the company to repurchase up to $35 million of its shares

June 5, 2015

Noodles & Company's board of directors has approved a share repurchase program to allow the company to repurchase up to $35 million of its shares, according to a company press release.

In conjunction with the share repurchase program, the company has amended its existing revolving line of credit to increase the maximum available borrowing capacity to $75 million from $45 million and extend the maturity date to June 2020 from November 2018. As of May 26, Noodles had about $22.4 million of outstanding indebtedness under its revolving line of credit.

"We are pleased to announce the initiation of a share repurchase program which reflects our confidence in the long-term strength of the Noodles brand, as well as our continued commitment to optimizing shareholder returns," said Kevin Reddy, chairman and CEO of Noodles & Company. "We have built a solid infrastructure with regard to development, operations and supply chain that has us well positioned for continued growth throughout the country, and we will continue to focus on improving our underlying business by narrowing the brand awareness gap and more effectively communicating our culinary expertise. We believe today's adoption of this repurchase program will further strengthen our ability to return value to our shareholders without diminishing our ability to grow our restaurant base."