Noodles to pay out $1.1M to former CEO Kevin Reddy

BROOMFIELD – The severance package for Kevin Reddy, who resigned as CEO and chairman of Broomfield-based restaurant chain Noodles & Co. (Nasdaq: NDLS) on Monday, includes $1,086,000 in payments, the company disclosed in a regulatory filing on Tuesday.

Reddy cited a desire to pursue new personal and financial opportunities in a statement released by the company on Monday.

The total severance amount equals one and one-half times Reddy’s base salary, and will be paid out over 18 months, according to the filing. A non-compete clause, meanwhile, prohibits Reddy from competing with Noodles in the North American fast-casual restaurant space over the same period for any company that derives at least 20 percent of sales from noodles or pasta dishes.

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Reddy had led the company as CEO since 2005.

Thirty-eight-year-old chief financial officer Dave Boennighausen was named interim CEO Monday, with Robert Hartnett appointed chairman.

Noodles’ stock price took a major hit in Tuesday trading following the news of Reddy’s departure and also a financial update Monday afternoon that projects a decrease in comparable restaurant sales and overall revenue that falls short of analysts’ expectations.

Noodles shares were down 22 percent to $8.11 apiece late in the trading day Tuesday.