Noodles' executives to receive IPO bonuses
Last Updated: 15:45 June 18, 2013
Kevin Reddy, chairman and chief executive of the Broomfield-based company, will receive a $1 million bonus related to the IPO, according to SEC documents. Keith Kinsey, president and chief operating officer, will receive $500,000.
Noodles' IPO price is expected to be from $13 to $15. The company plans to raise $67.1 million, based on a per-share price of $14, and to pay back an existing line of credit with the money, based on SEC documents. No date has been announced yet for the offering, according to the documents.
Reddy's salary will be $675,000 per year, and he'll be eligible to receive a bonus of up to 100 percent of his salary every year, based on performance requirements, according to SEC documents. Kinsey's salary will be $369,007 per year, and he'll be eligible to receive a bonus of up to 75 percent of his salary annually, according to the documents. In addition, the two each will receive shares of stock as part of the IPO.
Separately, two years after the IPO, the company's 12 directors will receive an annual fee of $100,000, according to SEC documents. They also will be reimbursed for travel, food, lodging and other expenses directly related to their activities as directors, as they are now.
Noodles filed an IPO registration statement in May, but did not give financial or timing details. It is expected to trade on the Nasdaq stock exchange under the symbol NDLS.
In documents filed this week, the company said it plans to open from 38 to 42 company-owned restaurants in the United States and from six to eight franchise restaurants this year. As of the end of May, Noodles representatives already had opened 16 company-owned restaurants and one franchise restaurant. The company plans to grow to 2,500 restaurants around the nation in the next 15 to 20 years.
Company revenue grew to $300 million in 2012 from $170 million in 2008, a compound annual growth rate of 15.2 percent. Company income grew to $16 million in 2012 from $2 million in 2008, a 67.5 percent annual growth rate, according to documents.
The first Noodles & Co. restaurant opened in 1995, and the company was headquartered in Boulder before moving to Broomfield. Connecticut private equity firm Catterton Partners is the majority owner of the company. Noodles has about 90 employees at its headquarters in Broomfield and about 6,500 employees nationwide.
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