What amount of tax credits did Noodles & Company have in 2024 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
l provision for income taxes | $ | 54 | $ 24 | $ 37 |
The reconciliation of income tax provision (benefit) that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying Consolidated Statements of Operations is as follows for 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Federal income tax benefit at federal rate | $ (7,730) | $ (2,065) | $ (688) |
| State income tax benefit, net of federal tax | (1,793) | (420) | (112) |
| Other permanent differences | 783 | 629 | 368 |
| Tax credits | (1,400) | (1,51 |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company had tax credits of approximately $1.4 million in 2024. This figure is part of a larger table detailing the components of the company's provision for income taxes. The table also includes figures for 2023 and 2022, allowing for a year-over-year comparison.
For a prospective franchisee, this information provides insight into how Noodles & Company manages its tax obligations and benefits. Tax credits can reduce the overall tax liability of the company, which can positively impact its financial performance. Understanding the specific tax credits that Noodles & Company utilizes may not directly impact a franchisee's operations, but it contributes to a broader understanding of the company's financial strategies.
The table also shows other factors influencing the provision for income taxes, such as federal and state income tax benefits, changes in valuation allowance, and other permanent differences. These elements collectively determine the effective income tax rate for Noodles & Company. Reviewing these figures over the three-year period can reveal trends and potential areas of tax planning.
It's important to note that these tax figures are at the consolidated level for Noodles & Company, and individual franchisees will have their own separate tax obligations and strategies. However, the overall tax efficiency of the parent company can be an indicator of sound financial management, which can indirectly benefit franchisees through a stable and profitable franchise system.