Diveroli Investment Group Files Schedule 13D Supporting Noodles & Company Turnaround

Diveroli Investment Group (DIG), a significant shareholder of Noodles & Company, has filed a Schedule 13D with the SEC, indicating alignment with Noodles' ongoing strategic review. DIG supports management's collaborative efforts with Piper Sandler to explore turnaround strategies typical in the sector. Recently, another investor, Galloway Capital Partners, filed a 13D reinforcing confidence in these turnaround initiatives, citing their prior successful experience with Sector recapitalization efforts such as Regis, which involved deleveraging, refranchising, and debt reduction. A key strategy under consideration is the sale of approximately 200 corporate-owned Noodles restaurants, expected to generate around $60 million in proceeds, which would significantly decrease the company's high-interest debt burden currently carrying rates near 9-10%. This deleveraging is anticipated to enhance refinancing prospects, provide balance sheet strength, and bolster market sentiment. DIG sees a focused program of store sales paired with debt refinancing as a proven blueprint for increasing shareholder value and financial stability. The investment group is open to ongoing dialogue with Noodles' management and board to support strategic measures that align with long-term value creation for shareholders. DIG’s investment approach focuses on identifying undervalued companies experiencing operational shifts or technological changes presenting upside potential. The firm has committed to publishing a comprehensive analysis of its investment thesis for Noodles & Company. The disclosed filings clarify that the information provided is based on publicly available data and does not constitute investment advice. This development is particularly relevant to insurance industry professionals monitoring credit risk, debt refinancing trends, and corporate restructuring impacts on market valuations and investment portfolios. The reduction in high-interest debt could influence Noodles & Company's credit ratings and borrowing costs, thereby affecting the company's financial risk profile. Such turnaround strategies may have broader implications for stakeholders including insurers involved in commercial credit, debt instruments, and investment underwriting where corporate financial health is a factor. DIG’s approach underscores the role of activist shareholders in influencing corporate financial strategies through structured shareholder communications and regulatory filings.