Over what period does Noodles & Company recognize stock-based compensation expense?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
restricted stock units, any of which may be performance-based, and for incentive bonuses, which may be paid in cash or stock or a combination thereof, for certain newly hired employees. As of December 31, 2024, approximately 355,405 share-based awards were available to be granted under the Inducement Plan.
Stock-based compensation expense is generally recognized on a straight-line basis over the service period of the awards. In 2024, 2023 and 2022, non-cash stock-based compensation expense of $3.7 million, $4.3 million and $4.4 million, respectively, was included in general and administrative expense. As of December 31, 2024, there was $5.6 million of unrecognized compensation
costs related to non-vested share-based compensation arrangements granted under the Plan, which is expected to be recognized over 2.6 years.
The Company
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, stock-based compensation expense is generally recognized on a straight-line basis over the service period of the awards. This means that the cost of stock options or other equity-based compensation is spread evenly over the period the employee is required to provide service in exchange for the award.
For the fiscal years 2024, 2023 and 2022, Noodles & Company included non-cash stock-based compensation expense of $3.7 million, $4.3 million and $4.4 million, respectively, in general and administrative expenses. As of December 31, 2024, there was $5.6 million of unrecognized compensation costs related to non-vested share-based compensation arrangements granted under the Plan, which is expected to be recognized over 2.6 years.
The company estimates forfeiture rates that average 26% based upon the class of employees receiving stock-based compensation in its calculation of stock-based compensation expense for the year ended December 31, 2024. These estimates are based on historical forfeiture behavior exhibited by employees of the Company.