What was the total segment expenses for Noodles & Company in 2023?
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) $ | (5,029) $ | (832) | |
| Reconciliation: | ||||
| Interest expense, net | 8,381 | 4,803 | 2,445 | |
| Con |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the total segment expenses for the company in 2023 were $508,434,000. This figure represents the sum of various costs associated with running both company-owned and franchised Noodles & Company restaurants. These expenses include the cost of sales, labor, occupancy, other restaurant operating costs, general and administrative expenses, depreciation and amortization, pre-opening costs, and restaurant impairments, closure costs, and asset disposals.
Understanding the components of these expenses is crucial for prospective franchisees. For example, 'cost of sales' reflects the direct costs of ingredients and supplies, while 'labor' covers wages and benefits for restaurant staff. 'Occupancy' pertains to rent and property-related expenses. 'Other restaurant operating costs' can include utilities, marketing, and other day-to-day expenses. General and administrative costs cover corporate overhead. Depreciation and amortization account for the wear and tear of assets. Pre-opening costs are incurred when opening new locations, and restaurant impairments, closure costs, and asset disposals reflect losses from underperforming or closed restaurants.
For a potential Noodles & Company franchisee, this information provides a benchmark for evaluating the financial health and operational efficiency of the franchise system. While franchisees will not be directly responsible for all of these expenses (some are specific to the corporate entity), understanding the overall cost structure can help them assess the potential profitability of their own franchise location. It's important to note that the FDD presents expenses on a segment level, which includes both company-owned and franchised locations. Franchisees should seek clarification from Noodles & Company regarding expense breakdowns specific to franchised units to gain a more accurate understanding of their potential costs.