What was the segment loss from operations for Noodles & Company in 2024?
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 2024 was approximately $27.778 million. The FDD provides a table presenting selected financial information regarding the single reportable segment, which includes both company-owned and franchise-owned restaurants. This segment information is regularly reviewed by Noodles & Company's Chief Operating Decision Maker (CODM), which consists of the senior executive team. The CODM uses income (loss) from operations to assess performance and make key operating decisions, such as determining the rate at which resources are invested into the segment.
The table in the FDD outlines various revenue and expense components contributing to the segment's financial performance. In 2024, Noodles & Company's total segment revenue amounted to $493.271 million. However, the total segment expenses reached $521.049 million, leading to the reported segment loss from operations of $27.778 million. These expenses include cost of sales ($123.692 million), labor ($154.258 million), occupancy ($46.366 million), other restaurant operating costs ($95.032 million), general and administrative expenses ($50.824 million), depreciation and amortization ($29.066 million), pre-opening costs ($1.543 million), and restaurant impairments, closure costs, and asset disposals ($20.268 million).
Prospective franchisees should note that a segment loss from operations does not necessarily indicate the overall financial health of Noodles & Company, as it does not account for other financial factors such as interest expense and income taxes. However, it does provide insight into the operational efficiency and profitability of the core restaurant business. Franchisees should consider these figures in conjunction with other financial data and trends presented in the FDD to gain a comprehensive understanding of the financial performance of Noodles & Company.