Noodles franchisee to take over 9 company-owned shops, build 22 more

BROOMFIELD — Noodles & Co. (NASDAQ:NDLS) River City Restaurant Group has refranchised nine company-owned Noodles locations in North Carolina and Florida and plans to develop 22 new stores between 2021 and 2032.

This move represents further evidence of Noodles’ recent comeback after years of closing stores locations, apathy from franchisees and sliding revenues. 

In November, the Broomfield-based fast casual eatery reported increased year-over-year revenue and reduced costs in the third quarter of fiscal year 2019, posting a net income that was more than double the same period the previous year. That period, which saw $118.3 million in revenue, marked Noodles’ sixth consecutive quarter of positive comparable sales growth.

In the past month alone, the company’s stock is up nearly 30 percent. 

“As Noodles & Co. returns to more meaningful unit growth, we will continue to strengthen our existing franchise partnerships and add additional franchise partners to the Noodles system,” Noodles CEO Dave Boennighausen said in a prepared statement. “River City Restaurant Group has been a great longtime partner for the brand, and we look forward to supporting its expansion in these four important markets in the Southeast.”

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