According to Noodles & Company's 2025 Franchise Disclosure Document, the company's reported inventory value as of December 31, 2024, was $10,500 (in thousands). This figure represents the value of food, beverages, supplies, and smallwares that Noodles & Company had on hand at that date. For comparison, the inventory value as of January 2, 2024, was $10,251 (in thousands).

For a prospective franchisee, understanding the inventory valuation is crucial because it reflects the level of investment required in stocking the restaurant. The FDD specifies that inventories are valued at the lower of cost (using the first-in, first-out method) or net realizable value. This means that Noodles & Company aims to present a conservative estimate of its inventory value, which can affect the franchisee's initial and ongoing expenses related to supplies.

Additionally, the FDD notes that smallwares inventory, consisting of plates, silverware, and cooking utensils, are considered current assets due to their frequent replacement. As of December 31, 2024, smallwares inventory was valued at $6.7 million and was included in the Consolidated Balance Sheets. The replacement costs for these items are recorded as other restaurant operating costs and expensed as incurred. This accounting practice provides transparency into how Noodles & Company manages and accounts for its restaurant supplies, which is valuable information for potential franchisees in assessing operational costs.