factual

How much gift card breakage did Noodles & Company recognize in restaurant revenue in 2022?

Q: How much gift card breakage did Noodles & Company recognize in restaurant revenue in 2022?

urrent liabilities, and the long-term portion, \$1.0 million, is included in other long-term liabilities in the Consolidated Balance Sheets. Revenue recognized in Source: Item 22 — CONTRACTS (FDD pages 98–99)

Noodles_Company Franchise · 2025 FDD

Answer from 2025 FDD Document

urrent liabilities, and the long-term portion, $1.0 million, is included in other long-term liabilities in the Consolidated Balance Sheets.

Revenue recognized in

Source: Item 22 — CONTRACTS (FDD pages 98–99)

What This Means (2025 FDD)

According to Noodles & Company's 2025 Franchise Disclosure Document, the company recognized $0.5 million in gift card breakage in restaurant revenue during 2022.

Gift card breakage refers to the portion of gift card balances that are not expected to be redeemed by customers. Noodles & Company recognizes this breakage as revenue when it determines that the likelihood of redemption is remote. This determination is based on the company's historical redemption patterns.

For a prospective franchisee, this indicates that Noodles & Company actively manages its gift card liabilities and recognizes breakage as a revenue stream. The amount of breakage can fluctuate year to year, as seen by the $0.4 million in 2024 and $0.3 million in 2023. This revenue contributes to the overall financial performance of Noodles & Company restaurants.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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