UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
| Noodles & Company |
(Name of Issuer)
Class A Common Stock, $0.01 par value per share |
| (Title of Class of Securities) |
| 65540B105 |
| (CUSIP Number) |
Tenzing Global Management LLC
90 New Montgomery Street, Suite 650
San Francisco, California 94105
415-645-2400
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
February 3, 2020 |
(Date of Event which Requires Filing of this Statement) |
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ¨
*The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
SCHEDULE 13D
| CUSIP No. | 65540B105 | Page 2 of 11 |
1 |
NAME OF REPORTING PERSON Tenzing Global management LLC
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) 45-3120520 | |||
|
| ||||
2 |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) |
(a) |
o |
|
|
(b)
|
☒ | ||
3 |
SEC USE ONLY
| |||
4 |
SOURCE OF FUNDS (SEE INSTRUCTIONS) | |||
| WC | ||||
5 |
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
o |
| |
6 |
CITIZENSHIP OR PLACE OF ORGANIZATION | |||
| Delaware | ||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH |
7 |
SOLE VOTING POWER |
| 0 | ||
8 |
SHARED VOTING POWER | |
| 2,225,000 | ||
9 |
SOLE DISPOSITIVE POWER | |
| 0 | ||
10 |
SHARED DISPOSITIVE POWER | |
| 2,225,000 |
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||
| 2,225,000 | |||
12 |
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (see(see INSTRUCTIONS) |
o |
|
| (SEE INSTRUCTIONS) | |||
13 |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||
| 5.0% | |||
14 |
TYPE OF REPORTING PERSON | ||
| IA, OO | |||
SCHEDULE 13D
| CUSIP No. | 65540B105 | Page 3 of 11 |
1 |
NAME OF REPORTING PERSON Tenzing Global Investors LLC
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) 27-5132283 | |||
|
| ||||
2 |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) |
(a) |
o |
|
|
(b)
|
☒ | ||
3 |
SEC USE ONLY
| |||
4 |
SOURCE OF FUNDS (SEE INSTRUCTIONS) | |||
| WC | ||||
5 |
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
o |
| |
6 |
CITIZENSHIP OR PLACE OF ORGANIZATION | |||
| Delaware | ||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH |
7 |
SOLE VOTING POWER |
| 0 | ||
8 |
SHARED VOTING POWER | |
| 1,620,759 | ||
9 |
SOLE DISPOSITIVE POWER | |
| 0 | ||
10 |
SHARED DISPOSITIVE POWER | |
| 1,620,759 |
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||
| 1,620,759 | |||
12 |
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (see(see INSTRUCTIONS) |
o |
|
| (SEE INSTRUCTIONS) | |||
13 |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||
| 5.0% | |||
14 |
TYPE OF REPORTING PERSON | ||
| OO | |||
SCHEDULE 13D
| CUSIP No. | 65540B105 | Page 4 of 11 |
1 |
NAME OF REPORTING PERSON Tenzing Global Investors Fund I LP
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) 36-4708131 | |||
|
| ||||
2 |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) |
(a) |
o |
|
|
(b)
|
☒ | ||
3 |
SEC USE ONLY
| |||
4 |
SOURCE OF FUNDS (SEE INSTRUCTIONS) | |||
| WC | ||||
5 |
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
o |
| |
6 |
CITIZENSHIP OR PLACE OF ORGANIZATION | |||
| Delaware | ||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH |
7 |
SOLE VOTING POWER |
| 0 | ||
8 |
SHARED VOTING POWER | |
| 1,620,759 | ||
9 |
SOLE DISPOSITIVE POWER | |
| 0 | ||
10 |
SHARED DISPOSITIVE POWER | |
| 1,620,759 |
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||
| 1,620,759 | |||
12 |
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (see(see INSTRUCTIONS) |
o |
|
| (SEE INSTRUCTIONS) | |||
13 |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||
| 3.7% | |||
14 |
TYPE OF REPORTING PERSON | ||
PN | |||
SCHEDULE 13D
| CUSIP No. | 65540B105 | Page 5 of 11 |
1 |
NAME OF REPORTING PERSON Chet Kapoor
I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY) | |||
| ||||
2 |
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) |
(a) |
o |
|
|
(b)
|
☒ | ||
3 |
SEC USE ONLY
| |||
4 |
SOURCE OF FUNDS (SEE INSTRUCTIONS) | |||
| WC | ||||
5 |
CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
o |
| |
6 |
CITIZENSHIP OR PLACE OF ORGANIZATION | |||
United States of America | ||||
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH |
7 |
SOLE VOTING POWER |
| 0 | ||
8 |
SHARED VOTING POWER | |
| 2,225,000 | ||
9 |
SOLE DISPOSITIVE POWER | |
| 0 | ||
10 |
SHARED DISPOSITIVE POWER | |
| 2,225,000 |
11 |
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON | ||
| 2,225,000 | |||
12 |
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (see(see INSTRUCTIONS) |
o |
|
| (SEE INSTRUCTIONS) | |||
13 |
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) | ||
| 5.0% | |||
14 |
TYPE OF REPORTING PERSON | ||
| IN | |||
| Page 6 of 11 |
| Item 1. | Security and Issuer. |
This statement on Schedule 13D (“Schedule 13D”) relates to 2,225,000 shares of Class A Common Stock, $0.01 par value per share (the “Shares”), of Noodles & Company, a Delaware corporation (the “Issuer”), whose principal executive offices are located at 520 Zang Street, Suite D, Broomfield, Colorado 80021.
| Item 2. | Identity and Background. |
| (a) | This Schedule 13D is jointly filed by: |
| (i) | Tenzing Global Management, LLC, a Delaware limited liability company (“Tenzing Global Management”), as the investment adviser to Fund I (as defined below) and the investment manager of the Parallel Account (as defined below); |
| (ii) | Tenzing Global Investors LLC, a Delaware limited liability company (“Tenzing Global Investors”), as the general partner of Fund I (as defined below); |
| (iii) | Tenzing Global Investors Fund I LP, a Delaware limited partnership (“Fund I”), with respect to the Shares directly and beneficially owned by it; and |
| (iv) | Chet Kapoor, as Managing Partner and Chief Investment Officer (“CIO”) of each of Tenzing Global Investors and Tenzing Global Management, and the Managing Partner and CIO of each of Fund I and the Parallel Account (as defined below). |
Each of the foregoing is referred to herein as a “Reporting Person” and collectively, as the “Reporting Persons.” Each of the Reporting Persons is party to a Joint Filing Agreement. Accordingly, the Reporting Persons are hereby filing a joint Schedule 13D.
| (b) | The address of the principal office of each of Tenzing Global Management, Tenzing Global Investors, Fund I, and Mr. Kapoor is 90 New Montgomery Street, Suite 650, San Francisco, California 94105. |
| (c) | The principal business of Tenzing Global Management is providing investment management services. Tenzing Global Management also manages other accounts on a discretionary basis (the “Parallel Account”). The principal business of Tenzing Global Investors is serving as the general partner of Fund I. The principal business of Fund I is that of a private investment vehicle engaged in investing and trading in a wide variety of securities and financial instruments for its own account. Mr. Kapoor is the Managing Partner and CIO of Tenzing Global Management and Tenzing Global Investors, and the Managing Partner and CIO of Fund I and the Parallel Account. |
| (d) | No Reporting Person, nor any person listed on Schedule A to this Schedule 13D, annexed hereto, has, during the last five years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). |
| (e) | No Reporting Person, nor any person listed on Schedule A to this Schedule 13D, has, during the last five years, been party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. |
| (f) | Each Reporting Person is a citizen of the United States of America. |
| Item 3. | Source and Amount of Funds or Other Consideration. |
The source and amount of funds (excluding commissions) used by Fund I in making its purchase of the Shares owned by it in the aggregate was $1,730,026 from working capital.
The source and amount of funds (excluding commissions) used by the Parallel Account in making its purchase of the Shares it was $569,380 from working capital.
| Item 4. | Purpose of Transaction. |
The Reporting Persons purchased the Shares based on the belief that such securities, when purchased, were undervalued and represented an attractive investment opportunity. Although no Reporting Person has any specific plan or proposal to acquire or dispose of the Shares, consistent with its investment purpose, each Reporting Person at any time and from time to time may acquire additional Shares or dispose of any or all of its Shares depending upon an ongoing evaluation of the investment in the Shares, prevailing market conditions, other investment opportunities, liquidity requirements of the Reporting Persons, and/or other investment considerations. The purpose of the acquisitions of the Shares was for investment, and the acquisitions of the Shares were made in the ordinary course of business and were not made for the purpose of acquiring control of the Issuer.
Consistent with their investment purpose, the Reporting Persons may engage in communications with one or more stockholders of the Issuer, one or more officers of the Issuer and/or one or more members of the board of directors of the Issuer and/or one or more representatives of the Issuer regarding the Issuer, including but not limited to its operations, and plans of the Reporting Persons. The Reporting Persons may discuss ideas that, if effected may result in a change in any of the following: the acquisition by persons of additional Shares of the Issuer, an extraordinary corporate transaction involving the Issuer, and/or other changes in the board of directors or management of the Issuer.
| Page 7 of 11 |
Except as disclosed above, none of the Reporting Persons has any other plans or proposals which relate to, or would result in, any of the matters referred to in paragraphs (a) through (j), inclusive, of the instructions to Item 4 of Schedule 13D. The Reporting Persons may, at any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto.
| Item 5. | Interest in Securities of the Issuer. |
| (a) | Each of the Reporting Person’s interests in the Securities of the Issuer are described as follows: |
| (i) | Tenzing Global Management, as the investment adviser of Fund I and the investment manager of the Parallel Account, may be deemed to beneficially own 2,225,000 Shares of the Issuer, representing 5.0% of all the outstanding Shares of the Issuer. |
| (ii) | Tenzing Global Investors, as the general partner of Fund I, may be deemed to beneficially own 1,620,759 Shares of the Issuer, representing 3.7% of all the outstanding Shares of the Issuer. |
| (iii) | Fund I directly owns 1,620,759 Shares of the Issuer, representing 3.7% of all the outstanding Shares of the Issuer. |
| (iv) | Mr. Kapoor, as Managing Partner and CIO of each of Tenzing Global Management and Tenzing Global Investors, and the Managing Partner and CIO of Fund I and the Parallel Account, may be deemed to beneficially own 2,225,000 Shares of the Issuer, representing 5.0% of all the outstanding Shares of the Issuer. |
| (v) | Collectively, the Reporting Persons beneficially own 2,225,000 Shares of the Issuer, representing 5.0% of all the outstanding Shares of the Issuer. |
Each Reporting Person disclaims beneficial ownership with respect to any shares of Common Stock other than the shares owned directly and of record by such Reporting Person.
The percentages set forth in this response are based on 44,122,121 Shares outstanding as of November 1, 2019, as reported by the Issuer in its Form 10-Q filed with the Securities and Exchange Commission on November 8, 2019.
| (b) | Tenzing Global Management, Tenzing Global Investors, and Mr. Kapoor may be deemed to share with Fund I and the Parallel Account (and not with any third party) the power to vote or direct the vote of and to dispose or direct the disposition of the 1,620,759 Shares and 604,241 Shares reported herein, respectively. |
| (c) | The following Reporting Persons engaged in the following open-market transactions with respect to the Issuer’s Shares during the last 60 days: |
Tenzing Global Investors Fund I, LP
| Date of Transaction | Quantity of Shares | Price per Share ($) | Type of Transaction |
| January 13, 2020 | 18,262 | 6.164 | Purchase |
| January 15, 2020 | 18,262 | 6.8449 | Purchase |
| January 16, 2020 | 18,262 | 6.9229 | Purchase |
| January 17, 2020 | 18,262 | 6.9699 | Purchase |
| January 21, 2020 | 18,262 | 7.0066 | Purchase |
| January 22, 2020 | 18,262 | 7.1648 | Purchase |
| January 23, 2020 | 10,919 | 7.0215 | Purchase |
| January 24, 2020 | 25,566 | 7.2313 | Purchase |
| January 27, 2020 | 11,030 | 6.9828 | Purchase |
| January 28, 2020 | 51,695 | 7.2407 | Purchase |
| January 30, 2020 | 13,054 | 7.2306 | Purchase |
| January 31, 2020 | 5,188 | 7.1512 | Purchase |
| February 3, 2020 | 9,121 | 7.273 | Purchase |
| February 4, 2020 | 9,121 | 7.5926 | Purchase |
| Page 8 of 11 |
Parallel Account
| Date of Transaction | Quantity of Shares | Price per Share ($) | Type of Transaction |
| January 13, 2020 | 6,738 | 6.164 | Purchase |
| January 15, 2020 | 6,738 | 6.8449 | Purchase |
| January 16, 2020 | 6,738 | 6.9229 | Purchase |
| January 17, 2020 | 6,738 | 6.9699 | Purchase |
| January 21, 2020 | 6,738 | 7.0066 | Purchase |
| January 22, 2020 | 6,738 | 7.1648 | Purchase |
| January 23, 2020 | 4,044 | 7.0215 | Purchase |
| January 24, 2020 | 9,471 | 7.2313 | Purchase |
| January 27, 2020 | 4,086 | 6.9828 | Purchase |
| January 28, 2020 | 9,429 | 7.2407 | Purchase |
| January 28, 2020 | 26,240 | 7.2606 | Sale |
| January 30, 2020 | 4,836 | 7.2306 | Purchase |
| January 31, 2020 | 1,922 | 7.1512 | Purchase |
| February 3, 2020 | 3,379 | 7.273 | Purchase |
| February 4, 2020 | 3,379 | 7.5926 | Purchase |
(d) Not applicable.
(e) Not applicable.
| Item 6. | Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer. |
Not applicable.
| Item 7. | Material to be Filed as Exhibits. |
Exhibit 1 Joint Filing Agreement.
| Page 9 of 11 |
Signatures
After reasonable inquiry and to the best of the knowledge and belief of the undersigned, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
| Dated: February 13, 2020 | Tenzing Global Management LLC | |
| By: | /s/ Chet Kapoor | |
| Name | Chet Kapoor | |
| Title | Managing Partner of Tenzing Global Management LLC | |
|
Tenzing Global Investors LLC | ||
| By: | /s/ Chet Kapoor | |
| Name | Chet Kapoor | |
| Title | Managing Partner of Tenzing Global Investors LLC | |
|
Tenzing Global Investors Fund I, LP | ||
| By: | Tenzing Global Investors LLC, its General Partner | |
| By: | /s/ Chet Kapoor | |
| Name | Chet Kapoor | |
| Title | CIO of Tenzing Global Investors Fund I, LP | |
|
Chet Kapoor | ||
| /s/ Chet Kapoor | ||
| Chet Kapoor | ||
| Page 10 of 11 |
EXHIBIT INDEX
| EXHIBIT A | Joint Filing Agreement, dated as of February 13, 2020, by and among the Reporting Persons. |
| Page 11 of 11 |
EXHIBIT A
JOINT FILING AGREEMENT
The undersigned hereby agree that the statement on Schedule 13G with respect to the Common Stock of Noodles & Company, dated as of February 13, 2020 is, and any amendments thereto signed by each of the undersigned shall be, filed on behalf of each of us pursuant to and in accordance with the provisions of Rule 13d-1(k) under the Securities Exchange Act of 1934, as amended.
| Dated: February 13, 2020 | Tenzing Global Management LLC | |
| By: | /s/ Chet Kapoor | |
| Name | Chet Kapoor | |
| Title | Managing Partner of Tenzing Global Management LLC | |
|
Tenzing Global Investors LLC | ||
| By: | /s/ Chet Kapoor | |
| Name | Chet Kapoor | |
| Title | Managing Partner of Tenzing Global Investors LLC | |
|
Tenzing Global Investors Fund I, LP | ||
| By: | Tenzing Global Investors LLC, its General Partner | |
| By: | /s/ Chet Kapoor | |
| Name | Chet Kapoor | |
| Title | CIO of Tenzing Global Investors Fund I, LP | |
|
Chet Kapoor | ||
| /s/ Chet Kapoor | ||
| Chet Kapoor | ||