What was the consolidated loss before income taxes for Noodles & Company as of December 31, 2024 (in thousands)?
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 | 521,049 | 508,434 | 510,312 | |
| Segment loss from operations | $ (27,778) $ | (5, |
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 $36.159 million. This figure reflects the company's financial performance before accounting for income taxes. It's important to note that the company's fiscal year ends on the Tuesday closest to December 31, and the provided data is in thousands of dollars.
For a prospective franchisee, this loss figure is a critical indicator of the financial health of Noodles & Company. While a loss doesn't necessarily mean the company is unstable, it does warrant further investigation. A potential franchisee should look at the trend of losses over the past few years, as well as the specific factors contributing to the loss, such as increased costs or decreased revenue. Examining the adjustments made to reconcile the net loss to net cash provided by operating activities can provide additional insights.
It is also useful to compare this loss to the performance of other companies in the fast-casual restaurant sector. Understanding the broader economic conditions and industry-specific challenges that Noodles & Company faces can help a franchisee assess the risk and potential rewards of investing in the franchise. Furthermore, prospective franchisees should inquire about the company's strategies for improving profitability and whether these strategies are likely to impact franchisees positively.
Ultimately, while the consolidated loss before income taxes provides a snapshot of Noodles & Company's financial situation, a comprehensive understanding requires a deeper dive into the company's financial statements, business plan, and market conditions. Consulting with a financial advisor is recommended to fully assess the implications of this loss for a potential franchise investment.