Galloway Capital acquires 6.01% stake in Noodles & Company

Galloway Capital Partners has acquired a 6.01% stake in Noodles & Company (NASDAQ: NDLS), according to a press release statement from the investment firm.

The Miami-based investment firm proposes that Noodles & Company sell approximately 200 company-owned restaurants to generate roughly $60 million in proceeds. Galloway Capital suggests these funds could be used to retire most of the restaurant chain's high-cost debt.

"Central to our proposal is the sale of approximately 200 company-owned restaurants, a move that could generate roughly $60 million in proceeds," said Bruce Galloway, founder and chief investment officer of Galloway Capital. "These funds would allow the Company to retire most of its high-cost debt, which would lower interest expense and improve cash flow as earnings per share."

Galloway Capital referenced its previous investment in Regis Corporation (NASDAQ: RGS), stating that the equity value improved after executing a similar deleveraging strategy. The firm claims Noodles & Company shares are undervalued and that management should take steps to enhance shareholder value through accelerated asset sales, debt reduction, and restoration of a sustainable capital structure.

The investment firm focuses on identifying what it considers undervalued publicly traded companies with upside potential. Galloway Capital targets opportunities supported by catalysts that the firm believes can unlock shareholder value.

Noodles & Company operates as a fast-casual restaurant chain. The company's financial information is available through SEC filings.

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