What was the cost of sales for Noodles & Company restaurants for the fiscal year ended January 2, 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (148,244) |
| Total stockholders' (deficit) equity | (5,579) | 27,160 | | Total liabilities and stockholders' equity | $ 324,648 | $ 368,095 |
Noodles & Company Consolidated Statements of Operations (in thousands, except share and per share data)
| Fiscal Year Ended | |||||
|---|---|---|---|---|---|
| December 31, 2024 | January 2, 2024 | January 3, 2023 | |||
| Revenue: | |||||
| Restaurant revenue | $ 483,097 | $ | 492,648 | $ | 498,359 |
| Franchising royalties and fees, and other | 10,174 | 10,757 | 11,121 | ||
| Total revenue | 493,271 | 503,405 | 509,480 | ||
| Costs and expenses: | |||||
| Restaurant operating costs (exclusive of depreciation and amortization shown | |||||
| separately below): | |||||
| 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 costs and expenses | 521,049 | 508,434 | 510,312 | ||
| Loss from operations | (27,778) | (5,029) | (832) | ||
| Interest expense, net | 8,381 | 4,803 | 2,445 | ||
| Loss before income taxes | (36,159) | (9,832) | (3,277) | ||
| Provision for income taxes | 54 | 24 | 37 | ||
| Net loss | $ (36,213) $ | (9,856) $ | (3,314) | ||
| Loss per Class A and Class B common stock, combined | |||||
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the cost of sales for Noodles & Company restaurants for the fiscal year ended January 2, 2024, was $124,102.
Cost of sales represents the direct expenses associated with producing the goods or services that Noodles & Company sells. For a restaurant, this primarily includes the cost of food and beverage ingredients used to prepare menu items. It is a key component in determining the profitability of each restaurant location.
Understanding the cost of sales is crucial for prospective franchisees as it directly impacts their potential profit margins. By comparing this figure with the total revenue, franchisees can assess the efficiency of the restaurant's operations and its ability to manage ingredient costs. A lower cost of sales relative to revenue generally indicates better cost management and higher profitability.
It's important to note that this figure represents the cost of sales for all Noodles & Company restaurants, both company-owned and franchised. Individual franchise locations may experience different costs of sales depending on factors such as location, supply chain efficiencies, and waste management practices. Therefore, prospective franchisees should further investigate the cost of sales for comparable franchise locations to gain a more accurate understanding of their potential profitability.