What was the segment loss from operations for Noodles & Company in 2024 (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 |
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 for the years 2024, 2023, and 2022. This table is regularly reviewed by Noodles & Company's Chief Operating Decision Maker (CODM). The CODM uses income (loss) from operations to evaluate performance and make key operating decisions, such as deciding the rate at which resources are invested into the segment.
The table shows that Noodles & Company's total segment revenue was $493.271 million in 2024. However, the total segment expenses amounted to $521.049 million. This resulted in a segment loss from operations of $27.778 million for the year 2024. In comparison, the segment loss from operations was $5.029 million in 2023 and $0.832 million in 2022.
For a prospective franchisee, this indicates that Noodles & Company experienced a significant operating loss in 2024. While the company's revenue is substantial, its expenses exceeded its revenue, leading to the loss. This could be a point of concern for potential franchisees, as it suggests potential challenges in profitability. However, it is important to note that the CODM uses this information to make decisions about resource allocation, which could lead to improvements in future performance.
It is also important to consider the context of these figures. The FDD notes that the company operates and reports as one segment, deriving revenue from both company-owned and franchise-owned restaurants. Therefore, the segment loss from operations reflects the overall performance of the entire Noodles & Company system. A prospective franchisee should investigate the reasons behind the loss and the company's plans to address it before making a decision about investing in a franchise.