What was the restaurant impairments, closure costs and asset disposals for Noodles & Company in 2024 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
he fair value measurement and unobservable (i.e., supported by little or no market activity).
6. Restaurant Impairments, Closure Costs and Asset Disposals
The following table presents restaurant impairments, closure costs and asset disposals for fiscal years 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 |
|---|
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the total restaurant impairments, closure costs, and asset disposals for the company in 2024 amounted to $20,268,000. This figure encompasses several components, including restaurant impairments, closure costs, and losses on the disposal of assets. Restaurant impairments specifically totaled $13,441,000, closure costs were $2,337,000, and losses on disposal of assets amounted to $4,490,000.
Restaurant impairments are based on management's assessment of expected future cash flows from company-owned restaurants, considering recent results and market factors. During 2024, Noodles & Company recorded fixed asset impairment on sixteen restaurants and wrote down lease related assets on seven restaurants. Closure costs during 2024 pertain to ongoing costs of restaurants that closed in previous years, as well as costs related to the closure of thirteen restaurants. These closure costs were offset by gains of $600,000 in 2024 resulting from the adjustments to liabilities as lease terminations occur.
Losses on disposal of assets and other include asset disposals in the normal course of business and lease-related costs. In 2024, the company recognized a gain of $500,000 from the sale of six company-owned restaurants to a new franchisee. These figures provide insight into the financial challenges and strategic decisions Noodles & Company faced during the year, including restaurant closures, asset impairments, and the sale of company-owned locations to franchisees.