What was the federal income tax benefit at the federal rate for Noodles & Company in 2024 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 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 federal income tax benefit at the federal rate for 2024 was $(7,730) in thousands. This figure is part of a reconciliation of the income tax provision (benefit) that would result from applying the federal statutory rate to pre-tax income, as shown in the Consolidated Statements of Operations. This reconciliation also includes figures for 2023 and 2022.
For a prospective franchisee, understanding these tax benefits can be important for assessing the overall financial health and profitability of Noodles & Company. The tax benefit can be influenced by various factors, such as state income tax, permanent differences, tax credits, changes in valuation allowance, tax rate changes, deferred tax asset write-offs, and other items. These elements collectively contribute to the final provision for income taxes and the effective income tax rate.
The table in the FDD provides a detailed breakdown of these components, allowing potential investors to see how each factor impacts the overall tax situation. It is important to note that these figures are in thousands, so the actual amounts are significantly larger. For example, the federal income tax benefit at the federal rate for 2024 was actually $7,730,000.
Reviewing these figures over the three-year period (2022-2024) can give a sense of trends and potential volatility in Noodles & Company's tax situation. This information, combined with other financial data in the FDD, can help a prospective franchisee make a more informed decision about investing in a Noodles & Company franchise.