What was the consolidated loss before income taxes for Noodles & Company as of December 31, 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.
The following table presents selected financial information with respect to our single reportable segment regularly reviewed by our CODM for 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenue: | ||||
| Restaurant revenue | $ 483,097 | $ | 492,648 | $ 498,359 |
| Franchising royalties and fees, and other | 10,174 | 10,757 | 11,121 | |
| Total segment revenue | 493,271 | 503,405 | 509,480 | |
| Less: | ||||
| Cost of sales | 123,692 | 124,102 | 137,859 | |
| Labor | 154,258 | 157,608 | 155,023 | |
| Occupancy | 46,366 | 45,925 | 45,213 | |
| Other restaurant operating costs | 95,032 | 91,559 | 91,220 | |
| General and administrative | 50,824 | 51,833 | 49,903 | |
| Depreciation and amortization | 29,066 | 26,792 | 23,268 | |
| Pre-opening | 1,543 | 2,215 | 1,662 | |
| Restaurant impairments, closure costs and asset disposals | 20,268 | 8,400 | 6,164 | |
| Total segment expenses |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the consolidated loss before income taxes as of December 31, 2024, was approximately $36.16 million. This figure represents the company's financial performance before accounting for income taxes, reflecting the difference between total revenues and total expenses, including interest expenses.
For a prospective franchisee, this loss figure is a critical indicator of the financial health of Noodles & Company. While not directly impacting the franchisee's individual unit performance, it reflects the overall stability and potential risks associated with investing in the franchise system. A significant loss may raise concerns about the franchisor's ability to support its franchisees, invest in system-wide improvements, or maintain brand standards.
It's important to note that this consolidated loss includes various factors such as restaurant revenue, franchising royalties and fees, cost of sales, labor, occupancy, and other operating costs. Additionally, interest expenses are factored into the calculation of the consolidated loss before income taxes. Franchisees should consider this figure in conjunction with other financial metrics and trends to assess the long-term viability of the Noodles & Company franchise.
Prospective franchisees should investigate the reasons behind the loss and the strategies Noodles & Company is implementing to improve profitability. Understanding the context of this loss within the broader financial picture of the company is essential for making an informed investment decision. Reviewing multiple years of financial statements, as provided in the FDD, will help identify trends and assess the company's progress in addressing financial challenges.