What was the accumulated deficit for Noodles & Company on January 3, 2023?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ock outstanding, combined | | | | | | | Basic | 45,465,727 | | 45,863,719 | | 45,913,787 | | Diluted | 45,465,727 | | 45,863,719 | | 45,913,787 |
Noodles & Company Consolidated Statements of Stockholders' Equity (Deficit) (in thousands, except share data)
| Commo | ı Stock (1) | Trea | Treasury | Additional Paid-In | Accumulated | Total Stockholders' | |||
|---|---|---|---|---|---|---|---|---|---|
| Shares | Amou | nt | Shares | Amount | Capital | Deficit | Equity (Deficit) | ||
| Balance—December 28, 2021 | 48,125,151 | $ | 481 | 2,423,871 | $ (35,0 | 00) | $ 207,226 | $ (135,074) | $ 37,633 |
| Stock plan transactions and other | 339,147 | 4 | _ | _ | (360) | _ | (356) | ||
| Stock-based compensation expense | _ | _ | _ | _ | 4,401 | _ | 4,401 | ||
| Net loss | (3,314) | (3,314) | |||||||
| Balance—January 3, 2023 | 48,464,298 | 485 | 2,423,871 | (35,0 | 00) | 211,267 | (138,388) | 38,364 | |
| Stock plan transactions and other | 681,239 | 6 | _ | _ | (655) | _ | (649) | ||
| Shares repurchased and retired | (1,731,952) | (17) | _ | _ | (4,987) | _ | (5,004) | ||
| Stock-based compensation expense | _ | _ | _ | _ | 4,305 | _ | 4,305 | ||
| Net loss | (9,856) | (9,856) | |||||||
| Balance—January 2, 2024 | 47,413,585 | 474 | 2,423,871 | (35,0 | 00) | 209,930 | (148,244) | 27,160 | |
| Stock plan transactions and other | 748,293 | 8 | _ |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the accumulated deficit as of January 3, 2023, was approximately $138.388 million. This figure represents the total losses Noodles & Company has incurred over its operating history, which have not yet been offset by profits. This is a critical indicator of the company's overall financial health and historical profitability.
For a prospective franchisee, a substantial accumulated deficit suggests that Noodles & Company has faced financial challenges in the past. While not necessarily a deterrent, it warrants careful consideration. It is important to investigate the reasons behind the deficit, such as expansion costs, market conditions, or operational inefficiencies. Understanding the context of this deficit can provide insights into the potential risks and opportunities associated with investing in a Noodles & Company franchise.
It is also important to note that the accumulated deficit can impact the company's ability to invest in future growth, support franchisees, or weather economic downturns. Franchisees should inquire about Noodles & Company's plans to address the deficit and improve its financial performance. This includes strategies for increasing revenue, reducing expenses, and enhancing profitability. A clear and credible plan can provide reassurance and demonstrate the company's commitment to long-term financial stability.
In addition to the accumulated deficit, prospective franchisees should also review other financial metrics, such as revenue growth, profitability margins, and cash flow. A comprehensive analysis of Noodles & Company's financial statements can provide a more complete picture of its financial health and potential for success. Consulting with a financial advisor is highly recommended to assess the risks and rewards of investing in a Noodles & Company franchise.