What is included in the long-lived assets reported by Noodles & Company?

According to Noodles & Company's 2025 Franchise Disclosure Document, long-lived assets include the company's property and equipment, as well as operating lease assets. These assets are presented in the Consolidated Balance Sheets.

Long-lived assets are reviewed for impairment on a regular basis, and whenever circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets is measured by comparing the carrying amount to the future undiscounted net cash flows expected to be generated by the assets. If the assets are determined to be impaired, the amount of impairment recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value.

During 2024, Noodles & Company recorded impairment charges of $13.4 million related to its restaurants. These charges are included in restaurant impairments, closure costs, and asset disposals in the Consolidated Statements of Operations. The fair value of the restaurant assets was determined using Level 3 inputs.