Popular restaurant chain's share price nose dives to point it faces stock market ax

Noodles & Company, a restaurant chain with 471 venues across 31 states, is set to be delisted from the Nasdaq Global Select Market.

featured-image

A popular restaurant chain’s stock price has dropped so significantly that it could be axed from the stock market. Noodles & Company’s share price dropped below $1 as the company faces closing the doors of its 471 restaurants across 31 states. The company had been attempting to claw back profits in 2024 under new CEO Drew Madsen who refreshed the menu and shut 20 underperforming restaurants as well as cutting jobs at the company’s main office to save money.

Dad made friend dig own grave and kill himself after raping 6-year-old daughter China downplays mystery virus deaths and claims safe to travel despite fears However, sales plummeted by 3.3 percent in the third quarter compared to 2023 totaling a loss of $6.8million.



It has since been warned by Nasdaq regulators that it is not complying with the rules requiring a minimum closing bid price of $1 per share. The stock had been trading below that threshold for 30 consecutive business days. Noodles & Company has until June 23 to increase its share price or face being delisted after its stock plunged 80 percent in 2024.

Its current stock price is a mere 71 cents, above its 52-week low of 55 cents. Fears are growing that the company could be following in the footsteps of many other chains like, Red Lobster . Red Lobster, the casual dining chain that brought seafood to the masses with inventions like popcorn shrimp and “endless” seafood deals, filed for bankruptcy in May last year before exiting in September.

A U.S. bankruptcy judge approved the casual seafood chain’s reorganization plan earlier this month, which included a lender group led by asset manager Fortress Investment Group acquiring the business.

The green light arrives under just four months after Red Lobster filed for bankruptcy protection as it pursued a sale, following years of mounting losses and dwindling customers while it struggled to keep up with competitors. The Orlando, Florida -based chain, which lost $76 million in 2023, shuttered dozens of its North American restaurants over recent months — both leading up to and during the bankruptcy process. That included more than 50 locations whose equipment was put up for auction just days before the Chapter 11 petition, followed by additional closures throughout the bankruptcy process.

Red Lobster’s new CEO is Damola Adamolekun, former chief executive of P.F. Chang’s.

Adamolekun was previously appointed to head RL Investor Holdings, the newly formed entity that acquired Red Lobster. He previously said that the company’s long-term investment plan included a commitment of more than $60 million in new funding. “Red Lobster is now a stronger, more resilient company, and today is the start of a new chapter in our history,” Adamolekun said in a statement.

Red Lobster is now an independent, privately-held company with 545 restaurant locations in 44 states and four Canadian provinces..