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.

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.

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