Noodles borrows $47M in a week to shore up cash position 

BROOMFIELD — Noodles & Co. (Nasdaq: NDLS), the Broomfield-based fast casual restaurant chain, has borrowed a total of $47 million since March 20  “as a precautionary measure in order to bolster our cash position and enhance financial flexibility” during the coronavirus crisis, according to documents filed with the U.S. Securities and Exchange Commission.

On March 20, the firm announced it would incrementally borrow $20 million “with a draw down under its $100 million credit facility to address near term volatility in current market conditions.” Then on March 27, Noodles reported it would borrow an additional $27 million.

“The safety and well-being of our guests and our team members is our top priority during this unprecedented time, and we have taken every measure and precaution possible to safely serve and deliver our food to our guests,” said Noodles CEO Dave Boennighausen in a prepared statement.

As a result of the COVID-19 crisis and Noodle’s recent borrowing, the firm has withdrawn its previous financial guidance for 2020.

Wall Street reacted poorly to the news as Noodles stock fell 7 percent to $5.16 per share at the close of trading Friday.

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