What was the deferred tax asset write-off for Noodles & Company in 2022 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
l provision for income taxes | $ | 54 | $ 24 | $ 37 |
The reconciliation of income tax provision (benefit) that would result from applying the federal statutory rate to pre-tax income as shown in the accompanying Consolidated Statements of Operations is as follows for 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Federal income tax benefit at federal rate | $ (7,730) | $ (2,065) | $ (688) |
| State income tax benefit, net of federal tax | (1,793) | (420) | (112) |
| Other permanent differences | 783 | 629 | 368 |
| Tax credits | (1,400) | (1,51 |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the deferred tax asset write-off for 2022 was $320,000. This figure is part of a table that outlines the components of the provision for income taxes, providing a breakdown of various factors influencing the company's tax obligations. This information is crucial for prospective franchisees as it offers insight into Noodles & Company's financial management and tax strategies. Understanding these figures can help franchisees assess the financial health and stability of the company.
The table also includes figures for 2023 and 2024, allowing for a comparative analysis of Noodles & Company's tax-related activities over these three years. For instance, the federal income tax benefit was $(688) in 2022, $(2,065) in 2023, and $(7,730) in 2024. The change in valuation allowance was $1,558 in 2022, $3,352 in 2023, and $9,484 in 2024. These figures, along with other items such as state income tax benefit, tax credits, and other permanent differences, provide a comprehensive view of the factors affecting Noodles & Company's income taxes.
For a prospective franchisee, this level of detail is valuable for conducting due diligence and understanding the financial intricacies of the franchise system. It's important to note that these figures are presented in thousands, so the actual amounts are significantly larger. Analyzing these trends and understanding the context behind these figures can help potential franchisees make informed decisions about investing in a Noodles & Company franchise.