The hottest IPO of the year is a chain restaurant from flyover country: Denver-based Noodles & Company. After it went public last Friday, its stock price immediately doubled, a clear indication that Wall Street undervalued the company.
With 343 locations, Noodles & Company is like an International House of Noodles. As its tagline “Your World Kitchen” suggests, Noodles & Company’s menu offerings (which, along with noodles, include sandwiches, soups, salads, and baked goods) are inspired by Italy, Thailand, Japan and Wisconsin. Fans, including the blogger Jason Kottke, praise it for being fresh, delicious and just plain friendly.
Funny enough, Chipotle, the wildly successful burrito chain, achieved the exact same feat–a 100 percent increase in its stock price–on the day of its IPO in 2006.
The similarities don’t end there. Continue reading . . .