Noodles & Co Faces Nasdaq Non-Compliance Notice: Confident Investing Starts Here

Noodles & Co received a Nasdaq non-compliance notice due to its stock price falling below $1.00 per share for 30 consecutive business days. The company has until December 22, 2025, to regain compliance by maintaining a minimum bid price of $1.00 per share for ten consecutive business days. Analysts rate NDLS as a Buy with a $4.00 price target, but technical indicators suggest bearish trends and significant financial challenges.

Noodles & Company (NDLS) has received a Nasdaq non-compliance notice due to its stock price falling below $1.00 per share for 30 consecutive business days. The company must regain compliance by maintaining a minimum bid price of $1.00 per share for ten consecutive business days by December 22, 2025 [1].

The notice was received after the closing bid price of Noodles & Company’s common stock remained below $1.00 for 30 consecutive business days. Under Nasdaq Listing Rule 5450(a)(1), the company has 180 calendar days to regain compliance [2].

Noodles & Company has faced significant financial challenges in recent quarters. The company reported a net loss per share of $0.20 for the first quarter of 2025, missing analyst expectations of a $0.11 loss. Despite the earnings miss, revenue increased by 2% to $123.8 million, surpassing forecasts [2].

Analysts rate NDLS as a Buy with a $4.00 price target, but technical indicators suggest bearish trends. The company's stock has been volatile, with a significant decline in the past five years. In early December 2024, Noodles & Company's stock price was down about 80% for the year and nearly 89% over the past five years [1].

Noodles & Company is working on its menu and operational strategies to increase traffic and turnaround its business. The company has focused on updating or replacing two-thirds of its offerings and closing underperforming locations. However, these efforts have not yet yielded significant results, as systemwide same-store sales dropped 3.3% in the third quarter [1].

The company has several options to regain compliance, including proposing a reverse stock split for shareholder approval. If the company does not regain compliance by the end of the 180-day period, it may be eligible for an additional 180-day compliance period if it transfers its listing to the Nasdaq Capital Market [2].

References:
[1] https://www.restaurantbusinessonline.com/financing/noodles-company-stock-price-decline-brings-threat-delisting
[2] https://www.investing.com/news/sec-filings/noodles--company-receives-nasdaq-notice-for-minimum-bid-price-noncompliance-93CH-4111294