What were the total restaurant impairments for Noodles & Company in 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
he fair value measurement and unobservable (i.e., supported by little or no market activity).
6. Restaurant Impairments, Closure Costs and Asset Disposals
The following table presents restaurant impairments, closure costs and asset disposals for fiscal years 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, restaurant impairments for 2024 totaled $13,441,000. This figure represents the impairment of restaurant assets, reflecting a decrease in their value as assessed by the company. This is significantly higher than the restaurant impairments reported in 2023 and 2022, which were $2,987,000 and $1,362,000, respectively.
Restaurant impairments are a critical factor for prospective franchisees to consider, as they reflect the financial health and performance of existing Noodles & Company locations. High impairment charges can indicate underperforming restaurants, which may be due to various factors such as market conditions, operational issues, or changing consumer preferences. It is important to note that these impairments are based on management's assessment of expected future cash flows and the fair market value of restaurant assets.
In 2024, Noodles & Company recorded fixed asset impairment on sixteen restaurants and wrote down lease related assets on seven restaurants. This suggests that a number of locations were not meeting the company's expectations for financial performance, leading to the write-down of assets. Additionally, the company wrote off lease related assets on two previously closed restaurants.
Overall, the total expenses related to restaurant impairments, closure costs, and asset disposals for Noodles & Company in 2024 amounted to $20,268,000. This total includes the restaurant impairments of $13,441,000, closure costs of $2,337,000, and losses on disposal of assets and other costs of $4,490,000. These figures provide a comprehensive view of the financial challenges faced by the company in managing its restaurant portfolio and highlight the potential risks associated with investing in a Noodles & Company franchise.