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Private equity firm Galloway Capital Partners and affiliated companies have bought 6.01% of outstanding shares in Noodles & Company, the hedge fund known for its activist-investor approach said Monday.
The purchase, announced in a Schedule 13D filing with the Securities & Exchange Commission, comes as the chain considers strategies for improving shareholder value.
The purchases were made in the open market between December of 2024 and November of 2025 at an average price of around 71.5 cents per share for investment purposes, according to the filing, which also stated that Noodles’ share price “is undervalued and management needs to take steps to protect the equity value for the shareholders.”
The filing further said that Galloway “intends to engage the board and management” regarding share performance, operations, management, governance — including potential changes to the board of directors — conflicted party transactions, capital allocation policies, and strategy.
The share price for Noodles & Company was 70 cents at the latest market close, well below the Nasdaq Stock Exchange’s required share price of at least $1, putting it out of compliance with the exchange’s regulations for the second time in a year.
The share purchases come as Noodles & Company has hired financial services firm Piper Sandler to explore options to maximize shareholder value, including a possible sale.
The chain recently announced retention bonuses for chief executive officer Joseph Christina, chief financial officer Michael Hynes, executive vice president for technology Corey Kline, and chief accounting officer Kathy Lockhart in the event of a sale.
Contact Bret Thorn at [email protected]
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