What was the net value of property and equipment for Noodles & Company in 2023, after accounting for accumulated depreciation and amortization?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
corded as other restaurant operating costs in the Consolidated Statements of Operations and are expensed as incurred. As of December 31, 2024 and January 2, 2024, smallwares inventory of $6.7 million, was included in the accompanying Consolidated Balance Sheets.
Property and Equipment
Property and equipment are stated at cost, less accumulated depreciation. Expenditures for major renewals and improvements are capitalized, while expenditures for minor replacements and maintenance and repairs are expensed as incurred. Upon retirement or disposal of assets, the accounts are relieved of cost and accumulated depreciation and the related gain or loss is reflected in earnings. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the estimated useful life or the leas
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, depreciation and amortization expense on property and equipment, including assets recorded as finance leases, was $26.7 million in 2023. This figure represents the expense recognized during the year, not the net book value of the property and equipment itself. The FDD states that property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, and leasehold improvements are amortized over the shorter of the estimated useful life or the lease term.
The document details how Noodles & Company accounts for property and equipment, stating that major renewals and improvements are capitalized, while minor replacements, maintenance, and repairs are expensed as incurred. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any related gain or loss is reflected in earnings. The estimated useful lives for property and equipment are also specified within the FDD, though the specific table was not included in the provided chunks.
While the depreciation and amortization expense for 2023 is provided, the actual net value of property and equipment (i.e., the original cost less accumulated depreciation) is not disclosed in the provided excerpts. A prospective franchisee would need to consult the full financial statements or request this information directly from Noodles & Company to determine the net value of property and equipment in 2023.