What was the net change in the number of company-owned Noodles & Company outlets during the 2024 fiscal year?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at Start of the Year | Outlets at End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 76 | 93 | 17 |
| 2023 | 93 | 90 | -3 | |
| 2024 | 90 | 92 | 2 | |
| Company- | 2022 | 372 | 367 | -5 |
| Owned | ||||
| 2023 | 367 | 380 | 13 | |
| 2024 | 380 | 371 | -9 | |
| Total Outlets | 2022 | 448 | 460 | 12 |
| 2023 | 460 | 460 | 0 | |
| 2024 | 470 | 463 | -7 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–97)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the net change in the number of company-owned outlets during the 2024 fiscal year was -9. This means that Noodles & Company had 9 fewer company-owned restaurants at the end of 2024 than it did at the beginning of the year. At the start of 2024, Noodles & Company had 380 company-owned outlets, and by the end of the year, that number decreased to 371.
This decrease in company-owned restaurants could be due to several factors, such as closures, sales to franchisees, or a strategic shift towards franchising. For a potential franchisee, this information is relevant because it provides insight into the company's operational trends. A decrease in company-owned stores might suggest a greater reliance on franchisees for expansion, or it could indicate financial challenges leading to closures.
It's important to note that while the number of company-owned stores decreased, the number of franchised outlets increased by 2 during the same period. This could signal a strategic move by Noodles & Company to focus more on franchising as a growth model. Prospective franchisees should investigate the reasons behind the net decrease in company-owned stores to fully understand the company's strategic direction and financial health. Understanding these trends can help a franchisee assess the stability and growth potential of the Noodles & Company franchise system.