updated - July 16, 2019 Tuesday EDT
Noodles & Co., the fast-casual restaurant chain that serves pastas and soups in 26 U.S. states, more than doubled in its first day of trading after pricing its initial public offering above an increased price range.
Noodles & Co. opened up 78% at $32 a share Friday after pricing a day earlier at $18 a share. By midday in New York, the stock price had more than doubled to $37.69 a share.
The company raised $97.2 million in its offering and is now valued by the market at more than $803 million.
"We've been delivering some of the best results in the restaurant industry in the last five years, and the market understands that and respects that," Chief Executive Officer Kevin Reddy told Bloomberg news. Investors "recognize the tremendous white space and growth that we have."
For the quarter ended Jan. 1, Noodles & Company reported a 17 percent gain in revenue, to $300 million, and a nearly 37 percent gain in net income, to $5.2 million.
The company, which is trading under the NDLS ticker, has 343 restaurants in 26 states and Washington, D.C.
Noodles, founded in 1995, is the first restaurant company to complete a U.S. public offering this year, according to data compiled by Bloomberg.
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