Noodles shares surge 14.05% after-hours as activist Galloway pushes 200-store sale to cut debt.

Noodles & Company surged 14.05% in after-hours trading following activist investor Galloway Capital Partners acquiring a 6.01% stake and proposing the sale of 200 company-owned restaurants to generate $60 million in proceeds. The firm argued this would reduce high-cost debt (9–10% interest), improve cash flow, and align with a proven turnaround strategy similar to its past investment in Regis Corporation. Galloway described Noodles’ shares as "materially undervalued," emphasizing the potential for significant equity appreciation through debt reduction and balance-sheet restructuring. The proposal aligns with Noodles’ recent strategic shifts, including store closures and franchise expansion, and signals a constructive activist engagement to address financial distress and unlock shareholder value.