Noodles shares jump 10.66% intraday as activist Galloway Capital takes 6% stake, proposes selling 200 stores to cut debt.

Noodles & Company surged 10.66% intraday after activist investor Galloway Capital Partners acquired a 6.01% stake and proposed selling 200 company-owned restaurants to generate $60 million in proceeds. The firm aims to use the funds to retire high-cost debt (9–10% interest rates), reduce leverage, and mitigate bankruptcy risk, citing a similar successful strategy at Regis Corporation. Galloway’s intervention aligns with Noodles’ ongoing closures of underperforming units and exploration of strategic alternatives, including asset sales. The proposal signals potential balance-sheet improvements and shareholder value unlocking, positioning the stock for appreciation amid ongoing operational restructuring.