Benzinga | Jan 10, 2022 03:09PM EST

Noodles & Co Plans California Expansion Via Franchise Deal With Warner Foods

* Noodles & Co (NASDAQ:NDLS) has entered into a partnership with Warner Foods regarding a new exclusive franchise partnership in California. The financial terms were not disclosed.

* With a 12-year growth plan commitment, Warner Foods, which will operate as NorCal Noodles LLC (NorCal Noodles) under this agreement, will develop 40 new locations throughout the state.

* Additionally, all 15 current company-owned Noodles locations in California will be re-franchised to NorCal Noodles.

* The company expects to close the transaction on January 12, 2022.

* "Importantly, this also marks the second announced new franchise agreement in the last few months, reflecting momentum towards our goal to significantly increase our franchise locations as part of our overall growth plan," said Noodles CEO Dave Boennighausen.

* Price Action: NDLS shares are trading higher by 5.35% at $8.66 on Monday's last check.