Business & Real Estate

Noodles & Company in midtown Sacramento closes doors after 6 months

A Noodles & Company storefront in Olathe, Kan. One of 16 store closures nationwide occurred last week in Sacramento.
A Noodles & Company storefront in Olathe, Kan. One of 16 store closures nationwide occurred last week in Sacramento. Kansas City Star

The Noodles & Company eatery in midtown Sacramento has closed its doors just six months after opening.

The restaurant operated at 1420 16th St., in the Legado de Ravel complex, a two-building, mixed-use site that opened last year.

The closure was part of Broomfield, Colo.-based Noodles & Company’s plans to shutter 16 of its restaurants. Those plans were announced last week amid the firm’s disappointing third-quarter earnings report.

The chain, which features a wide variety of noodle dishes with international flavors, still has a presence in the region, with restaurants in Sacramento’s Loehmann’s Plaza, Rancho Cordova, Elk Grove, Citrus Heights, Roseville and Rocklin. There are two restaurants in Roseville.

Last week, Noodles & Company announced that it planned to close 16 restaurants in the fourth quarter as it works to revamp its real estate portfolio.

The announcement came as the company reported a net loss of $9.8 million in the third quarter ending in September. That was a sharp contrast to net income of $2.9 million reported in the same quarter of 2014.

Kevin Reddy, Noodles & Company chairman and CEO, said in a statement that “the company is taking strong action to improve top line sales trends and improve shareholder returns.”

He added: “As we increase our focus on our culinary, marketing and operational efforts, we have also completed a strategic review of our overall real estate portfolio.” He said the restaurant closings are intended to “improve the company’s performance and better position us to grow the brand.”

On Monday, the company confirmed the local closing occurred Thursday but did not elaborate beyond that.

Noodles & Company stock on Monday fell 50 cents, or 4.27 percent, to close at $11.22 a share on the Nasdaq stock market.

Mark Glover: 916-321-1184, @markhglover

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