NEW YORK (TheStreet) -- Noodles & Co. (NDLS) shares are up 5.37% to $15.70 in early market trading on Friday after the casual dining restaurant chain announced a $35 million share repurchase program.
The company amended its existing revolving line of credit to $75 million from $45 million and extended the maturity date to June 2020 from November 2018.
"We are pleased to announce the initiation of a share repurchase program which reflects our confidence in the long-term strength of the Noodles brand, as well as our continued commitment to optimizing shareholder returns," said CEO Kevin Reddy.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio sees the program as a step in the right direction but he would like to see more from management.
"I think it is great that they are buying back stock but what we really need is better execution in the game plan as we talked about the other day on Mad Money," said Cramer.
TheStreet Ratings team rates NOODLES & CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOODLES & CO (NDLS) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, disappointing return on equity and poor profit margins."