Noodles shares dip on 2Q loss

BROOMFIELD — Noodles & Co.’s share price dropped 4.6 percent in after-hours trading Thursday, shortly after the Broomfield-based restaurant chain reported a loss of $14.1 million for its second quarter that ended June 30.

The share price closed at $7.25 and dropped to $6.92 within an hour.

Noodles (Nasdaq: NDLS) said in its earnings report that the loss partially was the result of a $10.2 million pre-tax impairment charge related to 11 restaurants. Impairment charge is the term used to describe writing of worthless goodwill.

The loss was in stark contrast to a profit of $3.1 million for the same period a year ago. Loss per share was 51 cents per share compared with a positive 10 cents per share for the same period a year ago.

For the quarter, Noodles revenue increased 5.4 percent to $121.4 million compared with $115.2 million for the second quarter of 2015.

Dave Boennighausen, chief financial officer, has taken on the added role of interim chief executive, after Kevin Reddy resigned as the company’s chairman and CEO on July 26.

“Our second quarter results were below expectations in what proved to be a challenging environment for the industry,” Boennighausen said in a prepared statement. “Noodles & Company remains a unique, differentiated brand with significant upside. We are working aggressively to implement important strategic decisions to regain momentum and increase shareholder value.”

Boennighausen said the company is re-evaluating “our store operating model to improve the guest experience, as well as to deliver improved unit level profitability. Additionally, on the corporate level we will pursue a more moderate unit growth rate as well as a reduction in corporate overhead.”

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