What was the consolidated loss before income taxes for Noodles & Company in 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ber 31, 2024 | 48,161,878 | $ | 482 | 2,423,871 | $ (35,0 | 00) | $ 213,396 | $ (184,457) | $ (5,579) |
(1) Unless otherwise noted, activity relates to Class A common stock.
Noodles & Company Consolidated Statements of Cash Flows (in thousands)
| Fiscal Year Ended | |||||
|---|---|---|---|---|---|
| December 31, 2024 | January 2, 2024 | January 3, 2023 | |||
| Operating activities | |||||
| Net loss | $ (36,213) $ | (9,856) $ | (3,314) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||
| Depreciation and amortization | 29,066 | 26,792 | 23,268 | ||
| Deferred income taxes, net | 21 | 26 | (40) | ||
| Restaurant impairments, closure costs and asset disposals | 14,402 | 3,981 | 2,261 | ||
| Amortization of debt issuance costs | 606 | 366 | 723 | ||
| Stock-based compensation | 3,609 | 4,235 | 4,328 | ||
| Gain on insurance proceeds received for property damage | — | (205) | — | ||
| Changes in operating assets and liabilities: | |||||
| Accounts receivable | 1,086 | 1,201 | (2,576) | ||
| Inventories | (702) | (303) | (743) | ||
| Prepaid expenses and other assets | (280) | (520) | 1,244 | ||
| Accounts payable | (1,943) | 2,206 | (563) | ||
| Operating lease assets and liabilities | (1,466) | (1,025) | (5,417) | ||
| Income taxes | 8 (161) | (68) | |||
| Accrued expenses and other liabilities | (633) | 758 | (9,546) | ||
| Net cash provided by operating activities | 7,561 | 27,495 | 9,557 | ||
| Investing activities | |||||
| Purchases of property and equipment | (28,767) | (52,043) | (33,886) | ||
| Proceeds from restaurant refranchising | 2,053 | — | 1,577 | ||
| Insurance proceeds received for property damage | — | 243 | — | ||
| Net cash used in investing activities | (26,714) | (51,800) | (32,309) | ||
| Financing activities | |||||
| Net borrowings from swing line loan | 1,820 | (9) | 4,781 | ||
| Proceeds from borrowings on long-term debt | 19,000 | 34,500 | 53,512 | ||
| Payments on long-term debt | — | — | (32,850) | ||
| Debt issuance costs | (902) | (690) | (1,077) | ||
| Payment of finance leases | (2,441) | (2,376) | (1,990) | ||
| Repurchase of common stock | — | (4,981) | — | ||
| Stock plan transactions and tax withholding on share-based compensation awards | (188) | (649) | (356) | ||
| Net cash pr |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the net loss for the fiscal year ended December 31, 2024, was approximately $36.213 million. This figure is a critical indicator of the company's overall financial performance during that period. The document also provides comparative figures for the fiscal years ended January 2, 2024, and January 3, 2023, with net losses of approximately $9.856 million and $3.314 million, respectively. These figures are in thousands of dollars.
For a prospective franchisee, understanding these losses is crucial. While a net loss doesn't necessarily indicate immediate instability, it does warrant a closer look at the factors contributing to the loss. These factors could include increased operating costs, decreased revenue, or significant one-time expenses. It is important to investigate the reasons behind the losses and whether Noodles & Company has strategies in place to address them. A prospective franchisee should also consider the trend of losses over the three years presented, as this can provide insight into the company's financial trajectory.
Furthermore, the FDD provides additional context by detailing various adjustments made to reconcile the net loss to net cash provided by operating activities. These adjustments include depreciation and amortization, deferred income taxes, restaurant impairments, closure costs and asset disposals, amortization of debt issuance costs, and stock-based compensation. Analyzing these adjustments can offer a more nuanced understanding of Noodles & Company's cash flow situation and operational efficiency. A potential franchisee should consult with a financial advisor to fully assess the implications of these financial results and adjustments.
In summary, while the Noodles & Company experienced a net loss in 2024, a comprehensive review of the financial statements, including the adjustments to reconcile net loss to net cash flow, is essential for any prospective franchisee to make an informed decision. Understanding the reasons behind the loss and the company's plans to improve profitability is key to assessing the potential risks and rewards of investing in a Noodles & Company franchise.