What is the restaurant revenue for Noodles & Company in 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
are processed by one service provider. Concentration of credit risk related to accounts receivable are limited, as the Company's receivables are primarily amounts due from franchisees and the Company directly pulls the amounts owed from the franchisees bank accounts.
Revenue Recognition
Revenue consists of sales from restaurant operations and franchise royalties and fees. Revenue from the operation of companyowned restaurants is recognized when sales occur. The Company reports revenue net of sales and use taxes collected from customers and remitted to governmental taxing authorities.
Gift Cards
The Company sells gift cards which do not have an expiration date, and it does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer or the Company determines the likelihood of the gift card being redeemed by the customer is remote ("gift card breakage"). The determination of the gift card breakage rate is based upon Company-specific historical redemption patterns. The Company has determined that approximately 15% of gift cards will not be redeemed, which is recognized ratably over the estimated redemption period of the gift card, approximately 24 months.
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Noodles & Company's revenue consists of sales from restaurant operations, franchise royalties, and fees. The revenue from company-owned restaurants is recognized when sales occur, reported net of sales and use taxes. In 2024, Noodles & Company recognized gift card breakage in restaurant revenue of approximately $0.4 million. Additionally, revenue recognized from the redemption of gift cards totaled $2.6 million in 2024. Franchise fees contributed $0.3 million to revenue in 2024.
Royalties from franchise restaurants are calculated as a percentage of restaurant revenues and are recognized when the franchised restaurants' sales occur. Initial franchise service fees are recognized over the term of the franchise agreement. The document also mentions that advertising and marketing costs, which impact restaurant revenue, were $12.7 million in 2024.
While the FDD provides details on various revenue streams, it does not state the total restaurant revenue for Noodles & Company in 2024. A prospective franchisee should inquire directly with Noodles & Company for the specific total restaurant revenue figure to gain a comprehensive understanding of the company's financial performance.