BROOMFIELD, CO – Noodles & Company (NASDAQ:NDLS), a fast-casual restaurant chain, disclosed on Tuesday that Brad West, the company's Chief Operating Officer, is set to retire on June 30, 2025. The announcement, based on a recent SEC filing, detailed the transition plan and compensatory arrangements for West.
According to the filing, West will remain in his current role until a successor is appointed. Subsequently, he will serve as Chief of Staff to the CEO until his retirement date. West will continue to receive his annual base salary of $376,362 and will be eligible for the company's annual cash incentive bonus program for 2024 and 2025, with a pro-rated bonus for 2025. He will also retain his benefits and continue to vest in equity awards through his retirement.
Additionally, a $100,000 retention bonus is included in the agreement, contingent upon West's continued employment through June 30, 2025. The bonus is also guaranteed if West is terminated without cause or resigns for good reason before the retirement date. However, no severance payments will be provided upon his departure.
The terms of the agreement include a provision that if West's employment is terminated without cause or he resigns for good reason before the retirement date, he will receive his base salary through June 30, 2025. This would change if a company control change occurs before June 20, 2025, in which case West would receive a year's base salary, a pro-rated target bonus, and a lump sum equal to 12 months of health coverage costs.
The company's filing, which includes the full text of the Transition Services and Separation Agreement, provides the contractual framework for West's departure and the company's succession planning.
This transition comes as Noodles & Company continues to navigate the competitive fast-casual dining market. The information is based on a press release statement.
In other recent news, Noodles & Company has reported steady growth in its second quarter of 2024, with a 2% increase in same-store sales and a 1.8% rise in total revenue, amounting to $127.4 million.
However, the company has revised its full-year guidance and plans to close 10 to 15 underperforming restaurants by year-end, a move not factored into their original projections. The revised full-year revenue is now anticipated to range between $495 million and $505 million.
In pursuit of future growth, the company is focusing on digital channels and loyalty programs, alongside introducing new menu items. Cost reduction efforts, including headcount reduction and supply chain savings, are projected to result in savings of over $5 million in 2024.
Despite the planned closures, Noodles & Company is optimistic about its positioning for long-term growth. The company also plans to open 10 new company-owned restaurants and three new franchise restaurants in 2024.
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