How many reportable operating segments does Noodles & Company have?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company operates its business as one operating and reportable segment.
17. Segment Reporting
The Company's Chief Operating Decision Maker ("CODM") is the senior executive team that includes the Chief Executive Officer, the Chief Financial Officer and the Chief Operating Officer. The Company has one reportable operating segment. The reportable operating segment is comprised of one operating segment, which has been aggregated to a single operating segment in consideration of the aggregation criteria set forth in ASC 280. The one reportable segment derives its revenue from companyowned restaurants and franchise owned restaurants. No guest accounts for 10% or more of the Company's revenues. The Company's CODM uses income (loss) from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Noodles & Company Franchise Disclosure Document, Noodles & Company operates as one operating and reportable segment. This single segment generates revenue from both company-owned and franchise-owned restaurants. The senior executive team, including the Chief Executive Officer, the Chief Financial Officer, and the Chief Operating Officer, are considered the Chief Operating Decision Maker (CODM).
The CODM uses income (loss) from operations to evaluate the performance of this single segment and to make key operating decisions. These decisions include determining the rate at which resources are invested into the segment. This means that Noodles & Company's financial performance is viewed holistically, rather than broken down into multiple divisions or types of operations for management and reporting purposes.
For a prospective franchisee, this indicates that the financial success of Noodles & Company is measured as a whole. The performance of both company-owned and franchised restaurants contribute to the overall financial picture. This may mean that decisions regarding resource allocation and strategic initiatives are made with the entire Noodles & Company system in mind, potentially impacting franchisees directly.