How many shares of common stock did Noodles & Company have on January 2, 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ough 2023 tax years remain open for examination by the authorities under the normal three year statute of limitations. Should the Company utilize any of its U.S. or state NOLs, the tax year to which the original loss relates will remain open to examination.
8. Stockholders' Equity
Common Stock
The Company has 181,000,000 shares of stock authorized, consisting of 150,000,000 shares of Class A common stock, par value $0.01 per share; 30,000,000 shares of Class B common stock, par value $0.01 and 1,000,000 shares of preferred stock, par value $0.01 per share. Preferred stock rights are determined by the Company's Board of Directors when preferred shares are issued. The following summarizes the rights of common stock:
Voting—Shares of Class A common stock and Class B common stock are entitled to one vote per share in all voting matters, with the exception that Class B common stock does not vote on the election or removal of directors.
Conversion—Each share of Class B common stock is convertible, at the option of the holder, into one share of Class A common stock.
Dividends—Class A common stock and Class B co
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the company had 181,000,000 authorized shares of stock as of January 2, 2024. This total is comprised of 150,000,000 shares of Class A common stock with a par value of $0.01 per share, 30,000,000 shares of Class B common stock with a par value of $0.01, and 1,000,000 shares of preferred stock with a par value of $0.01 per share.
The Class A and Class B common stock share similar rights, including one vote per share (except that Class B stock does not vote on the election or removal of directors) and equal sharing of dividends and liquidation distributions. Class B common stock can be converted into Class A common stock at the holder's option. The rights of the preferred stock are determined by Noodles & Company's Board of Directors when the preferred shares are issued.
For a prospective franchisee, understanding the capital structure of Noodles & Company can provide insight into the company's financial stability and governance. The large number of authorized shares suggests the potential for raising capital through stock issuance, while the different classes of stock indicate a specific governance structure controlled by the Board of Directors. It is important to note that authorized shares are not necessarily the same as outstanding shares, which represent the actual number of shares held by investors.