What was the consolidated loss before income taxes for Noodles & Company as of January 2, 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 January 2, 2024, was approximately $9,832,000. This figure represents the company's financial performance before accounting for income taxes. It is a key indicator of the company's profitability from its core operations, prior to any tax-related adjustments.
For a prospective franchisee, this number provides insight into the financial health of Noodles & Company. A loss before income taxes suggests that the company's expenses exceeded its revenue during that period. While not necessarily indicative of long-term instability, it would be prudent for a potential franchisee to investigate the reasons behind the loss, such as increased operating costs, decreased sales, or strategic investments that have not yet yielded returns. Understanding the context of this loss is crucial for assessing the financial risks and opportunities associated with investing in a Noodles & Company franchise.
It's also important to consider this figure in conjunction with other financial metrics provided in the FDD, such as revenue, expenses, and cash flow. A single year's loss does not necessarily define the overall viability of the franchise system. Prospective franchisees should look for trends over multiple years to gain a more comprehensive understanding of Noodles & Company's financial performance and stability. They should also inquire about the company's strategies for improving profitability and managing expenses in the future.