What was the depreciation and amortization for Noodles & Company in 2023 (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 amor |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company's depreciation and amortization expenses totaled $26,792,000 in 2023. This figure represents the accounting expense recognized for the reduction in value of Noodles & Company's tangible and intangible assets over that year. Depreciation applies to tangible assets like equipment and buildings, while amortization applies to intangible assets like patents or trademarks. These are non-cash expenses, meaning they don't represent actual cash outflow during the period but reflect the allocation of the cost of assets over their useful lives.
For a prospective Noodles & Company franchisee, understanding depreciation and amortization is crucial for assessing the overall financial health and profitability of the company. While franchisees do not directly incur these expenses at the corporate level, they can influence the fees that Noodles & Company charges. These figures are also important when evaluating the earnings before interest, taxes, depreciation, and amortization (EBITDA) of a franchised location, as outlined in section 3.04 of the FDD.
Depreciation and amortization can impact a franchisee's financial performance. For example, higher depreciation expenses might indicate significant investments in equipment or technology, which could lead to increased efficiency or improved customer experience. Conversely, large amortization expenses could be related to acquired intangible assets, which may or may not directly benefit the franchisee's operations. Therefore, it is important for potential franchisees to consider these factors when evaluating the financial statements provided in the FDD and to seek clarification from Noodles & Company regarding the nature and impact of these expenses.