BROOMFIELD, Colo. - Noodles & Company (NASDAQ: NDLS), a fast-casual restaurant chain, has entered into a franchise agreement with DND Group Inc. to open 10 new locations in the Portland, Oregon area, starting in 2025. The deal also includes the immediate acquisition of six existing restaurants in the region.
DND Group Inc., led by President and CEO Dara Dejbakhsh, is a seasoned operator in the restaurant industry with 43 years of experience. The group currently manages 56 restaurants across nine states, with a diverse brand portfolio that includes Dairy Queen and Taco John's, among others.
Dara Dejbakhsh expressed enthusiasm for the new partnership, highlighting Noodles & Company's strong brand presence and innovative menu as key attractions for the expansion in the Pacific Northwest. Drew Madsen, CEO of Noodles & Company, also welcomed the partnership, citing DND Group's operational excellence as a significant factor in the decision.
The franchise agreement targets populous cities within Oregon, including Portland, Eugene, Bend, and Yakima-Kennewick-Pasco, aiming to solidify Noodles & Company's presence in the Pacific Northwest. This move is part of the company's broader strategy to expand its franchise operations across the United States, with a focus on southern states like Alabama, Florida, Georgia, Texas, and Oklahoma.
Noodles & Company has been serving a variety of noodle dishes since 1995 and operates over 450 restaurants nationwide. The company has received recognition for its workplace culture and diversity initiatives, including being named one of America's Best Employers for Diversity by Forbes for three consecutive years.
This announcement is based on a press release statement from Noodles & Company. For more information about Noodles & Company and franchising opportunities, interested parties can visit the company's website.
InvestingPro Insights
As Noodles & Company (NASDAQ: NDLS) forges ahead with its expansion plans in the Pacific Northwest, it's important for investors to consider the company's financial health and market performance.
According to InvestingPro data, Noodles & Company has a market capitalization of $61.4 million, with a negative P/E ratio of -6.14, suggesting that the company is not currently profitable. The revenue for the last twelve months as of Q4 2023 stands at $503.4 million, although there has been a slight decline of -1.19% in revenue growth during this period.
The company's gross profit margin is at 16.73%, which reflects challenges in profitability, especially when combined with the fact that the stock price has been on a downward trend, with a -13.89% return over the past month. This is consistent with an InvestingPro Tip which notes that Noodles & Company is trading near its 52-week low, indicating that the stock has fared poorly in the short term.
Investors should also note that management has been actively buying back shares, which could be a sign of confidence in the company's future prospects. Additionally, the Relative Strength Index (RSI) suggests the stock is in oversold territory, which some investors might interpret as a potential buying opportunity.
For those interested in a deeper dive into Noodles & Company's financials and market performance, there are 19 additional InvestingPro Tips available at https://www.investing.com/pro/NDLS. To make the most of these insights, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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