What was the segment loss from operations for Noodles & Company in 2022 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
from operations to evaluate performance and make key operating decisions, such as deciding the rate at which we invest resources into the segment.
The following table presents selected financial information with respect to our single reportable segment regularly reviewed by our CODM for 2024, 2023 and 2022 (in thousands):
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenue: | ||||
| Restaurant revenue | $ 483,097 | $ | 492,648 | $ 498,359 |
| Franchising royalties and fees, and other | 10,174 | 10,757 | 11,121 | |
| Total segment revenue | 493,271 | 503,405 | 509,480 | |
| Less: | ||||
| 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 segment expenses | 521,049 | 508,434 | 510,312 | |
| Segment loss from operations | $ (27,778) $ | (5, |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the segment loss from operations in 2022 was $832,000. This figure is derived from a table presenting selected financial information regarding the company's single reportable segment, which is regularly reviewed by the Chief Operating Decision Maker (CODM). The CODM uses income (loss) from operations to assess performance and make key operating decisions.
For a prospective franchisee, this information is crucial as it provides insight into the financial performance of Noodles & Company's core business segments. A segment loss from operations indicates that the expenses within that segment exceeded its revenue. While a loss is not ideal, it is important to consider the context, such as the overall economic conditions and the company's strategic investments during that period.
It is also important to note that the segment loss from operations is just one metric to consider when evaluating a franchise opportunity. Prospective franchisees should also review other financial information, such as revenue, cost of sales, labor costs, and other operating expenses, to gain a comprehensive understanding of the company's financial health. Additionally, franchisees should investigate the reasons behind the segment loss and whether the company has implemented strategies to improve profitability.
Ultimately, understanding the segment's financial performance helps potential franchisees assess the risks and opportunities associated with investing in a Noodles & Company franchise. It is advisable to discuss these figures with the franchisor and seek professional financial advice before making any investment decisions.