What was the total stockholders' equity (deficit) for Noodles & Company on December 31, 2024?
Noodles_Company Franchise · 2025 FDDAnswer from 2025 FDD Document
ock outstanding, combined | | | | | | | Basic | 45,465,727 | | 45,863,719 | | 45,913,787 | | Diluted | 45,465,727 | | 45,863,719 | | 45,913,787 |
Noodles & Company Consolidated Statements of Stockholders' Equity (Deficit) (in thousands, except share data)
| Commo | ı Stock (1) | Trea | Treasury | Additional Paid-In | Accumulated | Total Stockholders' | |||
|---|---|---|---|---|---|---|---|---|---|
| Shares | Amou | nt | Shares | Amount | Capital | Deficit | Equity (Deficit) | ||
| Balance—December 28, 2021 | 48,125,151 | $ | 481 | 2,423,871 | $ (35,0 | 00) | $ 207,226 | $ (135,074) | $ 37,633 |
| Stock plan transactions and other | 339,147 | 4 | _ | _ | (360) | _ | (356) | ||
| Stock-based compensation expense | _ | _ | _ | _ | 4,401 | _ | 4,401 | ||
| Net loss | (3,314) | (3,314) | |||||||
| Balance—January 3, 2023 | 48,464,298 | 485 | 2,423,871 | (35,0 | 00) | 211,267 | (138,388) | 38,364 | |
| Stock plan transactions and other | 681,239 | 6 | _ | _ | (655) | _ | (649) | ||
| Shares repurchased and retired | (1,731,952) | (17) | _ | _ | (4,987) | _ | (5,004) | ||
| Stock-based compensation expense | _ | _ | _ | _ | 4,305 | _ | 4,305 | ||
| Net loss | (9,856) | (9,856) | |||||||
| Balance—January 2, 2024 | 47,413,585 | 474 | 2,423,871 | (35,0 | 00) | 209,930 | (148,244) | 27,160 | |
| Stock plan transactions and other | 748,293 | 8 | _ |
Source: Item 22 — CONTRACTS (FDD pages 98–99)
What This Means (2025 FDD)
According to Noodles & Company's 2025 Franchise Disclosure Document, the total stockholders' equity (deficit) as of December 31, 2024, was a deficit of $(5,579). This figure is derived from the consolidated balance sheets and statements of stockholders' equity (deficit) included in the FDD. It represents the cumulative financial result of Noodles & Company's operations, stock transactions, and other equity-related activities up to that date. A deficit indicates that the company's liabilities and other obligations exceeded its assets at that time.
For a prospective franchisee, this number provides a snapshot of Noodles & Company's overall financial health and capitalization. While a deficit might raise concerns, it's essential to consider this figure in the context of the company's broader financial performance, including revenues, expenses, and cash flow trends. A franchisee should investigate the reasons for the deficit, such as past losses or significant investments, and assess whether the company has a plan to improve its equity position.
It is also important to note that the stockholders' equity (deficit) can fluctuate due to various factors, including net income or loss, stock issuances or repurchases, and changes in accounting standards. Therefore, a franchisee should review the historical trend of this metric and understand the factors that could impact it in the future. Consulting with a financial advisor is recommended to fully understand the implications of Noodles & Company's stockholders' equity (deficit) on the franchise investment.
In the franchise industry, it is not uncommon for companies, especially those in a growth phase, to have fluctuations in their equity. However, consistent monitoring of financial statements and understanding the underlying business model is crucial for any potential investor. Prospective franchisees should also compare Noodles & Company's financial position with that of its competitors to gain a better understanding of its relative financial health.