What was the 'Occupancy' cost for Noodles & Company restaurants for the fiscal year ended January 3, 2023?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
-
| (148,244) |
| Total stockholders' (deficit) equity | (5,579) | 27,160 | | Total liabilities and stockholders' equity | $ 324,648 | $ 368,095 |
Noodles & Company Consolidated Statements of Operations (in thousands, except share and per share data)
| Fiscal Year Ended | |||||
|---|---|---|---|---|---|
| December 31, 2024 | January 2, 2024 | January 3, 2023 | |||
| Revenue: | |||||
| Restaurant revenue | $ 483,097 | $ | 492,648 | $ | 498,359 |
| Franchising royalties and fees, and other | 10,174 | 10,757 | 11,121 | ||
| Total revenue | 493,271 | 503,405 | 509,480 | ||
| Costs and expenses: | |||||
| Restaurant operating costs (exclusive of depreciation and amortization shown | |||||
| separately below): | |||||
| 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 costs and expenses | 521,049 | 508,434 | 510,312 | ||
| Loss from operations | (27,778) | (5,029) | (832) | ||
| Interest expense, net | 8,381 | 4,8 |
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 the fiscal year ended January 3, 2023, were $45,213. This figure represents the expenses Noodles & Company incurred related to the physical space its restaurants occupy, such as rent, property taxes, and insurance.
For a prospective franchisee, understanding occupancy costs is crucial because it is a significant component of operating expenses. These costs directly impact the profitability of each Noodles & Company location. Fluctuations in occupancy costs can affect the overall financial health of the franchise. Factors such as location, lease terms, and local market conditions can influence these expenses.
It is important to note that these costs are for company-owned restaurants. Franchisees should inquire about how their occupancy costs might differ, considering factors like subleasing arrangements or specific lease terms negotiated for their individual locations. Understanding these nuances is essential for accurate financial planning and forecasting.