What was the depreciation and amortization cost for Noodles & Company in 2022 (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 depreciation and amortization costs for 2022 were $23,268,000. This figure represents the expense recognized by Noodles & Company for the wear and tear of its assets (depreciation) and the allocation of the cost of intangible assets over their useful lives (amortization). These costs are a normal part of operating a business with significant capital investments and intangible assets.
For a prospective franchisee, understanding depreciation and amortization is crucial because it impacts the company's profitability and cash flow. While these are non-cash expenses, they reduce the company's reported income, which can affect its ability to borrow money or attract investors. Additionally, franchisees should be aware that their own restaurants will also incur depreciation expenses on equipment and leasehold improvements.
The depreciation and amortization costs are part of the total segment expenses, which also include cost of sales, labor, occupancy, other restaurant operating costs, general and administrative expenses, pre-opening costs, and restaurant impairments, closure costs, and asset disposals. In 2022, the total segment expenses for Noodles & Company were $510,312,000. These expenses are subtracted from the total segment revenue of $509,480,000, resulting in a segment loss from operations of $832,000 for the year.