What was the federal income tax benefit at the federal rate for Noodles & Company in 2023?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Current tax provision: | ||||
| Federal | $ | — | $ — | $ — |
| State | 33 | (2) | 77 | |
| 33 | (2) | 77 | ||
| Deferred tax (benefit) provision: | ||||
| Federal | 17 | 21 | (27) | |
| State | 4 | 5 | (13) | |
| 21 | 26 | (40) | ||
| Total 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
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the federal income tax benefit at the federal rate for 2023 was approximately $2,065,000. This figure represents the income tax benefit Noodles & Company realized by applying the federal statutory rate to its pre-tax income for that year.
This information is part of a reconciliation of the income tax provision (or benefit) that would result from applying the federal statutory rate to pre-tax income. The reconciliation also includes other factors that impact the overall income tax provision, such as state income tax benefits, permanent differences, tax credits, changes in valuation allowance, tax rate changes, deferred tax asset write-offs, and other items. These components collectively determine the final provision for income taxes and the effective income tax rate.
For a prospective franchisee, understanding these figures provides insight into Noodles & Company's financial performance and tax strategy. While franchisees do not directly share in these benefits, the overall financial health of the company can impact the support and resources available to franchisees. It's important to note that these figures are in thousands, so the actual amounts are significantly larger than they appear at first glance.