Noodles & Company approves 1-for-8 reverse stock split

Core Viewpoint - Noodles & Company is implementing a reverse stock split of its Class A common stock at a ratio of 1-for-8 to avoid delisting from the Nasdaq due to low share prices [1][2]. Group 1: Stock Split Details - The reverse stock split will take effect on February 18 at 12:01 a.m. Eastern Time [1]. - Shareholders approved the split with over 96% voting in favor at a special meeting on February 4 [2]. - The stock will continue to trade under the existing symbol NLDS [2]. Group 2: Compliance and Financial Status - Noodles & Company has been out of compliance with Nasdaq's minimum share price requirement of $1 for over six months [2]. - As of market close on February 4, shares were priced at 65 cents [4]. - The company reported a 4% increase in same-store sales for the quarter ending September 30, 2025, but incurred a net loss of $9.2 million, or 20 cents per share [4]. Group 3: Strategic Moves - The company has been working on a turnaround strategy for over a year and hired Piper Sandler as an advisor to explore options for maximizing shareholder value [4]. - Activist investor Galloway Capital Partners has urged the company to sell approximately 200 of its 349 company-owned restaurants [5].