What was the interest expense, net for Noodles & Company in 2024 (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 interest expense, net for 2024 was $8.381 million. This figure is part of the consolidated financial statements, reflecting the company's expenses related to its debt obligations, net of any interest income. This information is crucial for prospective franchisees as it provides insight into the financial health and profitability of Noodles & Company. Understanding the interest expenses can help potential franchisees assess the company's debt management and overall financial stability.
The interest expense is a key component in calculating Noodles & Company's consolidated loss before income taxes. In 2024, the consolidated loss before income taxes was $(36,159), which was derived after deducting the interest expense, net of $8,381. This indicates that interest expenses significantly impact the company's pre-tax profits. Franchisees should consider these figures when evaluating the potential return on investment and the financial risks associated with investing in a Noodles & Company franchise.
Reviewing the trend of interest expenses over the years can also provide valuable insights. In 2023, the interest expense, net was $4,803, and in 2022, it was $2,445. The increase in interest expense from 2022 to 2024 suggests changes in the company's debt levels or interest rates, which could affect future profitability. Prospective franchisees should inquire about the reasons for these fluctuations and how Noodles & Company plans to manage its debt in the future to ensure financial stability and growth.