Noodles & Co. adds a Southwest U.S. franchisee

BROOMFIELD — Noodles & Co. (Nasdaq: NDLS) said a new franchisee will open four restaurants in west Texas and southern New Mexico.

Tsunami Enterprises LLC president Carlos Hill plans the sites in El Paso and Las Cruces over the next three years. Tsunami is based in Las Cruces, according to New Mexico secretary of state filings.

Hill opened a Sushi Freak franchise in Las Cruces in 2019, telling local media he’d wanted to open a fast casual option outside of the usual “Mexican food, hamburgers, or chicken.” He runs a second location of the small San Diego-based sushi bowl provider in Albuquerque, according to a spokesperson for Noodles & Co.

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Hill and his family’s other El Paso and Las Cruces business interests — the cities are about 45 miles apart — are largely in real estate: contracting, roofing, home inspection, and custom home building.

Noodles & Co. this month reported second quarter revenue grew some 57% to more than $125 million; systemwide same-store sales increased at the same rate.

Digital sales grew by 15% to 56% of total sales. EBITA and net income were higher year-over-year and swung to the positive side of the ledger from a loss last year. Net debt was nearly halved.

At the end of June, the chain had 451 locations with 83% company owned. Average unit volumes in the quarter grew about 52% to $1.35 million, a company record.

Its shares traded recently at a $571 million market cap.

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