Why Noodles & Co (NDLS) Stock Is Getting Boiled Today

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Noodles & Co (NASDAQ:NDLS) stock was down on Tuesday following management changes and preliminary results for the second quarter of 2016.

Noodles & Company, NDLS stock

Noodles & Company announced that Kevin Reddy has stepped down as the company’s Chairman, CEO and as a member of its Board of Directors. This change went into effect immediately and the search for a new CEO has already started.

The Board has voted to have Robert Hartnett replace Reddy as its Chairman. While it conducts its search for a new CEO, the company will have Chief Financial Officer Dave Boennighausen acting as its interim CEO. NDLS is looking at both internal and external candidates to take over the CEO position.

Reddy has served as the CEO of Noodles & Company for the last 10 years. He said that now is “the right time in my career to pursue new personal and financial opportunities.”

Interim CEO Boennighausen has been with the company since 2004 and has held various roles. This includes Vice President of Finance and Executive Vice President of Finance. He moved to the CFO position in 2012 and joined the Board in late 2015.

NDLS’ preliminary results for the second quarter of 2016 have revenue coming in at $121.0 million. This would have revenue falling short of the $124.56 million that Wall Street is expecting from the company.

Noodles & Company also noted that it expects comparable restaurant sales to be down by roughly 1% for company-owned restaurants. Franchise restaurants are expected to see comparable sales decrease by about 2% during Q2 2016. This brings sales down by 1% system-wide.

NDLS stock was down by 17% as of Tuesday morning.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/07/noodles-company-ndls-stock/.

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