Noodles & Company’s board proposes reverse stock split
Bret Thorn
Mon, December 15, 2025 at 11:47 AM EST
2 min read
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Noodles & Company has announced plans for a reverse stock split in an effort to increase the price of individual shares.
The fast-casual noodle chain fell out of compliance of the rules of the Nasdaq Stock Market, where its shares are listed, on June 24, 2025, when its share price had been below $1 for 30 consecutive business days. It was given until Dec. 22, 2025 to regain compliance.
In a Dec. 12 filing with the Securities & Exchange Commission, in which Noodles & Company announced its plans for a reverse stock split, it also said it would ask for an extension of the deadline.
The plans for the reverse stock split are subject to shareholder approval. Shareholders who own stock in the company as of Dec. 19, 2025 are eligible to vote by proxy or at a shareholder meeting on Feb. 4, 2026.
A reverse stock-split merges shares, reducing the overall number but increasing their value. The company’s board of directors is giving itself wide leeway in regard to the size of the reverse split — anywhere from 1 for 2 to 1 for 15. It has until one year after the vote to execute the split. It may also choose not to execute it.
In September, Noodles hired financial services firm Piper Sandler as an adviser to explore options for maximizing shareholder value, including a sale of the company.
The June 24 notification was the second delisting warning that Noodles & Company had received in a year. It had received a similar warning on Dec. 24, 2024. Then the share price rose again, bringing it back in compliance before falling out of compliance again.
The share price closed at 73 cents on Friday.
The low share price has captured the attention of activist investor Galloway Capital Partners, which has about 6.01% of the company’s shares and has urged Noodles & Company to sell the majority of its restaurants.
Noodles & Company is based in Broomfield, Colo., and as of Sept. 30 had 349 company-owned restaurants and 86 franchised locations.
Contact Bret Thorn at bret.thorn@informa.com
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