What was the occupancy cost for Noodles & Company in 2023 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.
The following table presents selected financial information with respect to our single reportable segment regularly reviewed by our CODM for 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenue: | ||||
| Restaurant revenue | $ 483,097 | $ | 492,648 | $ 498,359 |
| Franchising royalties and fees, and other | 10,174 | 10,757 | 11,121 | |
| Total segment revenue | 493,271 | 503,405 | 509,480 | |
| Less: | ||||
| Cost of sales | 123,692 | 124,102 | 137,859 | |
| Labor | 154,258 | 157,608 | 155,023 | |
| Occupancy | 46,366 | 45,925 | 45,213 | |
| Other restaurant operating costs | 95,032 | 91,559 | 91,220 | |
| General and administrative | 50,824 | 51,833 | 49,903 | |
| Depreciation and amortization | 29,066 | 26,792 | 23,268 | |
| Pre-opening | 1,543 | 2,215 | 1,662 | |
| Restaurant impairments, closure costs and asset disposals | 20,268 | 8,400 | 6,164 | |
| Total segment expenses | 521,049 | 508,434 | 510,312 | |
| Segment loss from operations | $ (27,778) $ | (5, |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the occupancy costs for 2023 were $45,925 (in thousands). This figure is part of the consolidated statements of operations, which provide a detailed breakdown of the company's revenues and expenses. Occupancy costs are a significant expense category for restaurant franchises, reflecting the costs associated with leasing or owning the physical space where the restaurant operates. These costs can include rent, property taxes, insurance, and maintenance.
For a prospective Noodles & Company franchisee, understanding the occupancy costs is crucial for assessing the potential profitability of a location. These costs, along with other expenses such as the cost of sales, labor, and marketing, contribute to the overall financial performance of the franchise. Monitoring these expenses closely helps franchisees manage their cash flow and achieve their financial goals. The FDD provides historical data, allowing potential franchisees to see trends and better estimate future expenses.
The consolidated statements of operations offer a comprehensive view of Noodles & Company's financial performance, including revenue from restaurant sales, franchising royalties and fees, and other income sources. By examining these statements, potential franchisees can gain insights into the financial health of the company and the factors that influence its profitability. Understanding these financial metrics is an essential part of the due diligence process for anyone considering investing in a Noodles & Company franchise.
It is important to note that the occupancy costs presented in the FDD are based on the company's historical performance and may not be indicative of future results. Factors such as changes in market conditions, lease rates, and operating expenses can impact occupancy costs and overall profitability. Therefore, prospective franchisees should carefully evaluate these factors and conduct their own financial analysis to determine the potential risks and rewards of investing in a Noodles & Company franchise.