Sagamore Dining Partners gets $13.4 million deal for huge transition
Noodles & Company has bought 16 franchised units amounting to $13.4 million.
The branches, which are managed by franchisee Sagamore Dining Partners LLC for quite awhile now, are all operating in the major cities in Indianapolis region, and they are expected to go on with their operation while the changes are done. The agreement was closed last July.
Sagamore, which was created by Mike Lamb, went on with the plan of selling the Indianapolis branches to financially help the plan of opening Noodles & Company stores in the major areas of Louisville, Kentucky. The franchise operator went to agreement with Broomfield, Colorado-based food chain early this year. This is to develop the new infrastructure, where the pilot branch is expected to start its operation in late 2014.
"Mike Lamb and the rest of Sagamore Dining Partners have been doing excellent job of putting up the Noodles & Company's presence in Indianapolis for almost a decade now," the brand's chairman and CEO, Kevin Reddy, said in his statement. The famous dining place they have established and operated for a long time is still doing good. And the brand is planning for expansion in the neighboring cities.
Noodles & Company has been acquired and handling the operation the three branches in Indiana.
Wall Street experts witnessed the deal as helpful to Noodles & Company, they find the acquired locations can increase their yearly income to about $2 million. This will be the start of the projected promising results that the company can get, according to the report of David Tarantino of Robert W. Baird & Co.
Noodles & Company is running 394 franchised branches in 30 locations, including the District of Columbia until the end of the first quarter. The 63 units are all franchised.
This year 2014, Noodles & Company aims to put up 42 to 50 company-operated units and 10 to 15 franchised branches.
