What was the interest expense, net for Noodles & Company in 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
letters of credit outstanding under the A&R Credit Agreement.
The Company also maintains outstanding letters of credit to secure obligations under its workers' compensation program and certain lease obligations. As of December 31, 2024, the Company was in compliance with all of its debt covenants.
The Company's revolver, which had a balance of $96.4 million as of December 31, 2024, bore interest at rates between 7.95% to 10.75% during 2024. The Company's swingline, which had a balance of $6.6 million as of December 31, 2024, bore int
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company recorded interest expense of $8.4 million for the year 2024. This figure includes $0.6 million for the amortization of debt issuance costs. In comparison, Noodles & Company's interest expense was $4.8 million in 2023 and $2.4 million in 2022, with $0.4 million attributed to amortization of debt issuance costs in each of those years.
For a prospective franchisee, understanding Noodles & Company's interest expenses can provide insight into the company's financial leverage and debt management. The increase in interest expense from 2022 to 2024 suggests a greater reliance on debt financing during that period. This could be due to various factors, such as expansion, investments in infrastructure, or changes in debt terms.
It's important to note that while the document specifies the interest expense and amortization of debt issuance costs, it does not provide a 'net' interest expense figure. The interest rates on the company's revolver ranged from 7.95% to 10.75% during 2024, with a balance of $96.4 million as of December 31, 2024. The swingline had a balance of $6.6 million as of the same date, with interest rates between 10.00% and 10.75% in 2024.
A potential franchisee should consider these interest expenses in the context of Noodles & Company's overall financial health and profitability. A higher interest expense could impact the company's net income and cash flow, which could indirectly affect franchisees through factors like marketing support, technology investments, and overall brand strength. Reviewing the company's debt agreements and financial performance over several years would provide a more comprehensive understanding of the implications for franchisees.