What was the pre-opening cost for Noodles & Company in 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
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| (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 | 4,803 | 2,445 | ||
| Loss before income taxes | (36,159) | (9,832) | (3,277) | ||
| Provision for income taxes | 54 | 24 | 37 | ||
| Net loss | $ (36,213) $ | (9,856) $ | (3,314) | ||
| Loss per Class A and Class B common stock, combined | |||||
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the pre-opening costs for the fiscal year ended December 31, 2024, were $1.543 million. These costs encompass expenses incurred before a restaurant opens, including rent, wages, benefits, travel for training and opening teams, food, beverage, and other restaurant operating costs.
For a prospective Noodles & Company franchisee, understanding pre-opening costs is crucial for budgeting and financial planning. These costs are expensed as they are incurred, meaning they are recognized on the income statement in the period they occur, rather than being capitalized and depreciated over time. This accounting treatment can impact the franchisee's initial profitability and tax obligations.
It's important to note that these pre-opening costs are part of the broader "Total costs and expenses" category, which amounted to $521.049 million for the same period. While the pre-opening costs represent a relatively small fraction of the total expenses, they are still a significant figure that franchisees need to account for when launching a new Noodles & Company restaurant. Franchisees should also be aware that advertising and marketing costs are expensed as incurred and can be included in pre-opening costs, depending on the nature of the expenditure.