Amid COVID-19 shutdown, Noodles sees sales plummet, support staff furloughed

BROOMFIELD — Between March 11 and March 31, Broomfield-based fast-casual restaurant chain Noodles & Co. (Nasdaq: NDLS) saw comparable systemwide sales drop 46.3%, according to a recent filing with the U.S. Securities and Exchange Commission. 

For the quarter that ended March 31, sales were down 7.2% compared with the same period in 2019. 

As a result, the firm has furloughed about 10% of its support staff in Broomfield, and an additional 20% have seen their hours cut in half. Those who aren’t furloughed saw unspecified salary reductions.

In previous communications with regulators and investors, Noodles leadership estimated 2020 fiscal year capital expenditures of $20 million to $30 million. The firm now expects its capital budget to be between $7 million and $10 million.

Despite these COVID-19 closure-related challenges, Noodles’ situation may not be so dire. The firm’s stock price hovered around $5 Thursday, roughly where it was in mid-March, and sales may slowly be ticking back up. 

“While the environment remains challenging, daily sales during the seven days prior to Easter Sunday were 7% higher than our daily sales during the last two weeks of March,” Noodles CEO Dave Boennighausen wrote in the SEC filing.

Noodles in March launched free direct delivery through its website and mobile app.

“We are fortunate that as we entered this crisis, Noodles & Company had already built a strong off-premise business, representing nearly 60% of total sales,” Boennighausen said in a prepared statement. “Our food travels well and the variety and value inherent in our menu has allowed us to navigate these challenging times.”

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