What was the state deferred tax provision for Noodles & Company in 2023 (in thousands)?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
nd other" and the offsetting lease expense has been recorded in "Restaurant impairments, closure costs and asset disposals" in the Consolidated Statement of Operations.
7. Income Taxes
The components of the provision (benefit) for income taxes are as follows for 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 state deferred tax provision for 2023 was $5,000. This figure is part of the broader deferred tax (benefit) provision, which also includes a federal component. In 2023, the federal deferred tax provision was $21,000. The total deferred tax provision for Noodles & Company in 2023 was $26,000.
Understanding deferred tax provisions is crucial for assessing a company's financial health. A deferred tax asset arises when a company has overpaid taxes or has tax deductions or credits that can be used in the future, while a deferred tax liability arises when a company has underpaid taxes or has taxable income that will be taxed in the future. These provisions reflect the difference between accounting income and taxable income, and they can significantly impact a company's reported earnings.
For a prospective Noodles & Company franchisee, this information provides insight into how the company manages its tax obligations and the potential impact of taxes on its financial performance. While franchisees are not directly responsible for the company's overall tax strategy, understanding these figures can help them evaluate the financial stability and sophistication of the franchisor. It's important to note that these are consolidated figures for the entire Noodles & Company system, not individual franchise locations.
Reviewing these figures over several years, as presented in the table, allows for identifying trends and assessing the consistency of Noodles & Company's tax management. In this case, the table presents data for 2022, 2023 and 2024, offering a comparative view of the company's tax positions. This kind of historical perspective is valuable for making informed investment decisions.