Investing.com -- Shares in Noodles & Company (NASDAQ:NDLS) tumbled 6% in after-hours trading after CEO Kevin Reddy stepped down effective immediately and the restaurant chain lowered its guidance for its second quarter on Monday.
Reddy, 58, had served as CEO of the Broomfield, Colorado-based chain for 10 years dating back to April, 2006. Previously, Reddy spent time as the company's president April, 2005 to July, 2012 and its chief operating officer from April 2005 to June 2007. Before coming to Noodles & Company, Reddy spent eight years as chief operating officer at Chipotle Mexican Grill (NYSE:CMG) through 2005.
"After many years with this great Company, I have decided that it is the right time in my career to pursue new personal and financial opportunities," Reddy said in a statement. "I am honored to have worked with a remarkable team that has successfully positioned Noodles & Company as a unique brand and achieved significant growth to bring the concept to over 60 million guests around the country. I am looking forward to finding that elusive balance we all seek between personal goals and dreams and the right business opportunities that make them possible."
Reddy will be replaced on an interim basis by company CFO Dave Boennighausen. In addition, Noodles & Company appointed Robert Hartnett as the chairman of the Board of Directors on Monday. Hartnett, who has four decades of experience in the restaurant, most recently served as the CEO of Houlihan's from 2001 until 2015, when he negotiated the sale of the company. Hartnett also spent a considerable as the CEO and president of Einstein/Noah Bagel, Inc.
"I am pleased to welcome Bob Hartnett to the Company's board of directors. He is a seasoned leader within the restaurant industry and possesses a broad set of skills that I believe will be a tremendous asset not only to our board, but also to our senior management team as we move forward," said Scott Dahnke, Noodles & Company's lead independent director.
"We also look forward to continuing to work closely with Dave as interim Chief Executive Officer. Through numerous roles, including as a member of the Noodles & Company board of directors, he has been a valuable contributor to the growth of the Company. We are confident that he is the right person to lead Noodles & Company during this period of transition," Dahnke added.
Also on Monday, Noodles & Company announced it anticipates that comparable store sales system wide fell by 1% over the second quarter. Noodles & Company now expects quarterly revenue of $121 million for the three-month period, below analysts' forecasts of $125 million.
Shares in Noodles & Company fell 0.71 or 6.85% to 9.65 in after-hours trading.