What was the reported gift card liability for Noodles & Company in 2023, in thousands?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ement for the 2025 annual meeting of stockholders, it will recommend for election, and solicit proxies for the election of the Appointee at the 2025 annual meeting of stockholders. Hoak's ownership percentage was never less than the 9.0% threshold during the relevant period.
16. Revenue Recognition
Gift Cards
As of December 31, 2024 and January 2, 2024, the current portion of the gift card liability, $2.0 million and $2.2 million, respectively, is included in accrued expenses and other current liabilities, and the long-term portion, $1.0 million, is included in other long-term liabilities in the Consolidated Balance Sheets.
Revenue recognized in
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the gift card liability is divided into current and long-term portions. The current portion of the gift card liability for Noodles & Company as of January 2, 2024, was $2.2 million, while the long-term portion was $1.0 million. These figures are included in accrued expenses and other current liabilities, and other long-term liabilities, respectively, on the consolidated balance sheets.
In 2023, Noodles & Company recognized $2.8 million in revenue from the redemption of gift cards. Additionally, the company recognized gift card breakage, which represents the value of gift cards that are not expected to be redeemed, of approximately $0.3 million.
For a prospective franchisee, understanding these figures is important for assessing the financial health and revenue streams of Noodles & Company. The gift card liability represents a future obligation to provide goods or services in exchange for previously purchased gift cards. Monitoring the trends in gift card redemption and breakage can provide insights into customer behavior and the effectiveness of the gift card program. Franchisees should inquire about the specific accounting practices and reporting related to gift cards to ensure accurate financial planning and management.