0001275158-24-000084 | 10-Q | XBRL Viewer

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Long-Term Debt	6 Months Ended
Long-Term Debt	Jul. 02, 2024
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt On July 27, 2022, the Company entered into the Amended and Restated Credit Agreement (as further amended, restated, extended, supplemented, modified and otherwise in effect from time to time, the “A&R Credit Agreement”), with each other Loan Party (as defined in the A&R Credit Agreement) party thereto, each lender from time to time party thereto, and U.S. Bank National Association, as Administrative Agent, L/C Issuer and Swing Line Lender (each as defined in the A&R Credit Agreement). The A&R Credit Agreement matures on July 27, 2027. Among other things, the A&R Credit Agreement: (i) increased the credit facility from $100.0 million to $125.0 million; (ii) eliminated the term loan and principal amortization components of the credit facility; (iii) removed the Company’s capital expenditure covenant; (iv) enhanced flexibility for certain covenants and restrictions; and (v) lowered the spread of the Company’s cost of borrowing and transitioned from the London Interbank Offered Rate (LIBOR) to the Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.50% to 2.50% per annum, based upon the consolidated total lease-adjusted leverage ratio. The A&R Credit Agreement is secured by a pledge of stock of substantially all of the Company’s subsidiaries and a lien on substantially all of the personal property assets of the Company and its subsidiaries. On December 21, 2023, the Company amended its A&R Credit Agreement by entering into that certain First Amendment to Amended and Restated Credit Agreement (the “Amendment”). Among the modifications, the Amendment: (i) increased applicable rate ranges (A) with respect to SOFR loans, from 1.50% - 2.50% per annum to 1.75% - 3.00% per annum and (B) with respect to base rate loans, from 0.50% - 1.50% per annum to 0.75% - 2.00% per annum, in each case as determined by the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement), (ii) amended the Consolidated Fixed Charge Coverage Ratio (as defined in the A&R Credit Agreement) in order to limit the deduction of capital expenditures to “Non-Growth Capital Expenditures”, (iii) added a defined term for “Non-Growth Capital Expenditures” (along with certain related definitions), (iv) added a new capital expenditures covenant governing entry into new lease agreements and (v) increased the Consolidated Total Lease Adjusted Leverage Ratio (as defined in the A&R Credit Agreement) to be no greater than (x) 4.50 to 1.00 for the period beginning on the last day of the fiscal quarter ending January 2, 2024 until and including the last day of the fiscal quarter ending December 30, 2025 and (y) 4.25 to 1.00 for the period beginning on the last day of the fiscal quarter ending March 31, 2026 until and including the last day of the fiscal quarter ending September 29, 2026. As of July 2, 2024, the Company had $86.5 million of indebtedness (excluding $1.7 million of unamortized debt issuance costs) and $3.0 million of letters of credit outstanding under the A&R Credit Agreement. As of July 2, 2024, the Company had cash on hand of $1.8 million. The Company’s revolver, which had a balance of $85.9 million as of July 2, 2024, bore interest at rates between 8.42% and 10.50% during the first two quarters of 2024. The Company’s swingline, which had a balance of $0.6 million as of July 2, 2024, bore interest at 10.50% in the first two quarters of 2024. The Company also maintains outstanding letters of credit to secure obligations under its workers’ compensation program and certain lease obligations. The Company was in compliance with all of its debt covenants as of July 2, 2024.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jul. 02, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies In the normal course of business, the Company is subject to other proceedings, lawsuits and claims. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of July 2, 2024. These matters could affect the operating results of any one financial reporting period when resolved in future periods. The Company believes that an unfavorable outcome with respect to these matters is remote or a potential range of loss is not material to its consolidated financial statements. Significant increases in the number of these claims, or one or more successful claims that result in greater liabilities than the Company currently anticipates, could materially and adversely affect its business, financial condition, results of operations or cash flows.

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Jul. 02, 2024	Jan. 02, 2024
Assets
Operating lease assets, net	$ 174,362	$ 183,857
Finance lease assets, net	2,381	3,440
Total leased assets	$ 176,743	$ 187,297
Finance lease assets, line item [Extensible Enumeration]	Property and equipment, net	Property and equipment, net
Liabilities
Current operating lease liabilities	$ 31,390	$ 30,104
Current portion of finance lease liabilities	1,900	2,337
Long-term operating lease liabilities, net	174,626	186,285
Long-term finance lease liabilities	769	1,469
Total lease liabilities	$ 208,685	$ 220,195
Current finance lease liabilities, line item [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Long-term finance lease liabilities, line item [Extensible Enumeration]	Other long-term liabilities	Other long-term liabilities

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 02, 2024	Jan. 02, 2024
Current assets:
Cash and cash equivalents	$ 1,806	$ 3,013
Accounts receivable	3,956	5,144
Inventories	10,421	10,251
Prepaid expenses and other assets	5,944	3,879
Income tax receivable	362	337
Total current assets	22,489	22,624
Property and equipment, net	139,985	152,176
Operating lease assets, net	174,362	183,857
Goodwill	7,154	7,154
Intangibles, net	515	538
Other assets, net	1,788	1,746
Total long-term assets	323,804	345,471
Total assets	346,293	368,095
Current liabilities:
Accounts payable	17,900	16,691
Accrued payroll and benefits	8,194	7,769
Accrued expenses and other current liabilities	13,844	12,950
Current operating lease liabilities	31,390	30,104
Total current liabilities	71,328	67,514
Long-term debt, net	84,780	80,218
Long-term operating lease liabilities, net	174,626	186,285
Deferred tax liabilities, net	430	255
Other long-term liabilities	5,486	6,663
Total liabilities	336,650	340,935
Stockholders’ equity:
Preferred stock—$0.01 par value, 1,000,000 shares authorized and undesignated as of July 2, 2024 and January 2, 2024; no shares issued or outstanding	0	0
Common stock—$0.01 par value, 180,000,000 shares authorized as of July 2, 2024 and January 2, 2024; 48,047,131 issued and 45,623,260 outstanding as of July 2, 2024 and 47,413,585 issued and 44,989,714 outstanding as of January 2, 2024	480	474
Treasury stock, at cost, 2,423,871 shares as of July 2, 2024 and January 2, 2024	(35,000)	(35,000)
Additional paid-in capital	212,172	209,930
Accumulated deficit	(168,009)	(148,244)
Total stockholders’ equity	9,643	27,160
Total liabilities and stockholders’ equity	$ 346,293	$ 368,095

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jul. 02, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jul. 02, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and all other current liabilities approximate their fair values due to their short-term nature. The carrying amounts of borrowings approximate fair value as the line of credit, swingline and borrowings vary with market interest rates and negotiated terms and conditions are consistent with current market rates. The fair value of the Company’s line of credit and borrowings are measured using Level 2 inputs. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Assets recognized or disclosed at fair value in the condensed consolidated financial statements on a non-recurring basis include items such as leasehold improvements, property and equipment, operating lease assets, goodwill and other intangible assets. These assets are measured at fair value if determined to be impaired. Adjustments to the fair value of assets measured at fair value on a non-recurring basis as of July 2, 2024 and July 4, 2023 are discussed in Note 7, Restaurant Impairments, Closure Costs and Asset Disposals.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

Supplemental Financial Information (Tables)

6 Months Ended

Jul. 02, 2024

Supplemental Financial Information [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of the following (in thousands):


	July 2, 2024		January 2, 2024
Delivery program receivables	$	1,629	$	1,869
Vendor rebate receivables	658		779
Franchise receivables	1,005		1,043
Other receivables	664		1,453
Accounts receivable	$	3,956	$	5,144

Schedule of Prepaid Expenses and Other Assets

Prepaid expenses and other assets consist of the following (in thousands):


	July 2, 2024		January 2, 2024
Prepaid insurance	$	1,862	$	928
Prepaid occupancy related costs	812		800

Prepaid expenses	3,246		2,127
Other current assets	24		24
Prepaid expenses and other assets	$	5,944	$	3,879

Schedule of Property and Equipment

Property and equipment, net, consists of the following (in thousands):


	July 2, 2024		January 2, 2024
Leasehold improvements	$	224,112	$	232,060
Furniture, fixtures and equipment	174,866		176,872
Construction in progress	7,125		6,426
	406,103		415,358
Accumulated depreciation and amortization	(266,118)		(263,182)
Property and equipment, net	$	139,985	$	152,176

Schedule of Accrued Payroll and Benefits

Accrued payroll and benefits consist of the following (in thousands):


	July 2, 2024		January 2, 2024
Accrued payroll and related liabilities	$	5,054	$	5,205
Accrued bonus	1,368		698
Insurance liabilities	1,772		1,866
Accrued payroll and benefits	$	8,194	$	7,769

Schedule of Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):


	July 2, 2024		January 2, 2024
Gift card liability	$	1,919	$	2,222
Occupancy related	1,823		1,066
Utilities	1,353		1,311
Current portion of finance lease liability	1,900		2,337

Other restaurant expense accruals	1,154		1,466
Other corporate expense accruals	5,695		4,548
Accrued expenses and other current liabilities	$	13,844	$	12,950

Business Summary and Basis of Presentation	6 Months Ended
Business Summary and Basis of Presentation	Jul. 02, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Summary and Basis of Presentation	Business Summary and Basis of Presentation Business Noodles & Company (the “Company”), a Delaware corporation, develops and operates fast casual restaurants that serve globally inspired noodle and pasta dishes, soups, salads and appetizers. As of July 2, 2024, the Company had 473 restaurants system-wide in 31 states, comprised of 379 company-owned restaurants and 94 franchise restaurants. The Company operates its business as one operating and reportable segment. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of the Company, all adjustments considered necessary for the fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of January 2, 2024 was derived from audited financial statements. These financial statements should be read in conjunction with the audited financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2024. Fiscal Year The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. The Company’s fiscal quarters each contain 13 operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains 14 operating weeks. Fiscal year 2024, which ends on December 31, 2024, and fiscal year 2023, which ended on January 2, 2024, each contain 52 weeks. The Company’s fiscal quarter that ended July 2, 2024 is referred to as the second quarter of 2024, and the fiscal quarter ended July 4, 2023 is referred to as the second quarter of 2023. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure.” The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. The ASU is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company does not expect this to have a significant impact on its consolidated financial statements or related disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.

Stock-Based Compensation

6 Months Ended

Jul. 02, 2024

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

In May of 2023, the Company’s Board of Directors adopted the 2023 Stock Incentive Plan, which was approved at the annual meeting of stockholders on May 16, 2023 (the “2023 Plan”). The 2023 Plan authorizes the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance share units and incentive bonuses to employees, officers, non-employee directors and other service providers, as applicable. The Company’s 2013 Stock Incentive Plan, as amended and restated in May of 2013 was terminated. As of July 2, 2024, approximately 2.6 million share-based awards were available to be granted under the 2023 Plan.

The following table shows total stock-based compensation expense (in thousands):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Stock-based compensation expense	$	1,347	$	1,496	$	2,534	$	2,886
Capitalized stock-based compensation expense	$	11	$	20	$	33	$	42

Earnings (Loss) Per Share

6 Months Ended

Jul. 02, 2024

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using net income (loss) available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options, warrants and RSUs. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Net loss	$	(13,625)	$	(1,304)	$	(19,765)	$	(4,419)
Shares:
Basic weighted average shares outstanding	45,450,949		46,363,208		45,265,152		46,239,357
Effect of dilutive securities	—		—		—		—
Diluted weighted average shares outstanding	45,450,949		46,363,208		45,265,152		46,239,357
Loss per share:
Basic loss per share	$	(0.30)	$	(0.03)	$	(0.44)	$	(0.10)
Diluted loss per share	$	(0.30)	$	(0.03)	$	(0.44)	$	(0.10)

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. Potential common shares are excluded from the computation of diluted loss per share when the effect would be anti-dilutive. The shares issuable on the vesting or exercise of share-based awards that were excluded from the calculation of diluted earnings per share because the effect of their inclusion would have been anti-dilutive totaled 3,744,541 and 3,896,910 for the second quarters of 2024 and 2023, and totaled 3,529,837 and 3,466,704 for the first two quarters of 2024 and 2023, respectively.

Cover - shares	6 Months Ended
Cover - shares	Jul. 02, 2024	Aug. 02, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 02, 2024
Document Transition Report	false
Entity File Number	001-35987
Entity Registrant Name	NOODLES & COMPANY
Entity Central Index Key	0001275158
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-1303469
Entity Address, Address Line One	520 Zang Street, Suite D
Entity Address, City or Town	Broomfield
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80021
City Area Code	720
Local Phone Number	214-1900
Title of 12(b) Security	Class A Common Stock, $0.01 par value per share
Trading Symbol	NDLS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		45,636,789

Condensed Consolidated Statements of Stockholders' Equity - USD ($)
$ in Thousands

Total

Common Stock

Treasury

Additional Paid-in Capital

Accumulated Deficit

Beginning balance (in shares) at Jan. 03, 2023

^[1]

48,464,298

Beginning balance at Jan. 03, 2023

$ 38,364

$ 485

^[1]

$ (35,000)

$ 211,267

$ (138,388)

Treasury stock, beginning balance (in shares) at Jan. 03, 2023

2,423,871

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock plan transactions and other (in shares)

^[1]

388,747

Stock plan transactions and other

(685)

$ 4

^[1]

(689)

Stock-based compensation expense

2,820

Net loss

(4,419)

Ending balance (in shares) at Jul. 04, 2023

^[1]

48,853,045

Ending balance at Jul. 04, 2023

36,080

$ 489

^[1]

$ (35,000)

213,398

(142,807)

Treasury stock, ending balance (in shares) at Jul. 04, 2023

2,423,871

Beginning balance (in shares) at Apr. 04, 2023

48,781,701

Beginning balance at Apr. 04, 2023

35,931

$ 488

$ (35,000)

211,946

(141,503)

Treasury stock, beginning balance (in shares) at Apr. 04, 2023

2,423,871

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock plan transactions and other (in shares)

71,344

Stock plan transactions and other

(44)

$ 1

(45)

Stock-based compensation expense

1,497

Net loss

(1,304)

Ending balance (in shares) at Jul. 04, 2023

^[1]

48,853,045

Ending balance at Jul. 04, 2023

$ 36,080

$ 489

^[1]

$ (35,000)

213,398

(142,807)

Treasury stock, ending balance (in shares) at Jul. 04, 2023

2,423,871

Beginning balance (in shares) at Jan. 02, 2024

44,989,714

47,413,585

^[1]

Beginning balance at Jan. 02, 2024

$ 27,160

$ 474

^[1]

$ (35,000)

209,930

(148,244)

Treasury stock, beginning balance (in shares) at Jan. 02, 2024

2,423,871

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock plan transactions and other (in shares)

^[1]

633,546

Stock plan transactions and other

$ (251)

$ 6

^[1]

(257)

Stock-based compensation expense

2,499

Net loss

$ (19,765)

(19,765)

Ending balance (in shares) at Jul. 02, 2024

45,623,260

48,047,131

^[1]

Ending balance at Jul. 02, 2024

$ 9,643

$ 480

^[1]

$ (35,000)

212,172

(168,009)

Treasury stock, ending balance (in shares) at Jul. 02, 2024

2,423,871

Beginning balance (in shares) at Apr. 02, 2024

47,770,220

Beginning balance at Apr. 02, 2024

$ 21,904

$ 478

$ (35,000)

210,810

(154,384)

Treasury stock, beginning balance (in shares) at Apr. 02, 2024

2,423,871

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock plan transactions and other (in shares)

276,911

Stock plan transactions and other

$ 2

Stock-based compensation expense

1,354

Net loss

$ (13,625)

(13,625)

Ending balance (in shares) at Jul. 02, 2024

45,623,260

48,047,131

^[1]

Ending balance at Jul. 02, 2024

$ 9,643

$ 480

^[1]

$ (35,000)

$ 212,172

$ (168,009)

Treasury stock, ending balance (in shares) at Jul. 02, 2024

2,423,871

[1]	Unless otherwise noted, activity relates to Class A common stock.

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

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+ Details

Earnings (Loss) Per Share (Tables)

6 Months Ended

Jul. 02, 2024

Earnings Per Share [Abstract]

Schedule of Basic and Diluted EPS

The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Net loss	$	(13,625)	$	(1,304)	$	(19,765)	$	(4,419)
Shares:
Basic weighted average shares outstanding	45,450,949		46,363,208		45,265,152		46,239,357
Effect of dilutive securities	—		—		—		—
Diluted weighted average shares outstanding	45,450,949		46,363,208		45,265,152		46,239,357
Loss per share:
Basic loss per share	$	(0.30)	$	(0.03)	$	(0.44)	$	(0.10)
Diluted loss per share	$	(0.30)	$	(0.03)	$	(0.44)	$	(0.10)

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023
Pay vs Performance Disclosure
Net loss	$ (13,625)	$ (1,304)	$ (19,765)	$ (4,419)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Supplemental Financial Information - Accounts Receivable (Details) - USD ($) $ in Thousands	Jul. 02, 2024	Jan. 02, 2024
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 3,956	$ 5,144
Delivery program receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	1,629	1,869
Vendor rebate receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	658	779
Franchise receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	1,005	1,043
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 664	$ 1,453

Leases (Tables)

6 Months Ended

Jul. 02, 2024

Leases [Abstract]

Schedule of Supplemental Lease Information

Supplemental balance sheet information related to leases is as follows (in thousands):


Classification		July 2, 2024		January 2, 2024
Assets
Operating	Operating lease assets, net	$	174,362	$	183,857
Finance	Property and equipment	2,381		3,440
Total leased assets		$	176,743	$	187,297
Liabilities
Current lease liabilities
Operating	Current operating lease liabilities	$	31,390	$	30,104
Finance	Accrued expenses and other current liabilities	1,900		2,337
Long-term lease liabilities
Operating	Long-term operating lease liabilities	174,626		186,285
Finance	Other long-term liabilities	769		1,469
Total lease liabilities		$	208,685	$	220,195

Supplemental disclosures of cash flow information related to leases are as follows (in thousands):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Cash paid for lease liabilities:
Operating leases	$	10,850	$	10,565	$	21,846	$	21,087
Finance leases	649		638		1,301		1,402
	$	11,499	$	11,203	$	23,147	$	22,489
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	3,986	$	6,759	$	6,396	$	13,774
Finance leases	16		35		90		177
	$	4,002	$	6,794	$	6,486	$	13,951

Stock-Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023
Share-Based Payment Arrangement [Abstract]
Shares awards available to be granted (in shares)	2.6		2.6
Stock-based compensation expense	$ 1,347	$ 1,496	$ 2,534	$ 2,886
Capitalized stock-based compensation expense	$ 11	$ 20	$ 33	$ 42

Restaurant Impairments, Closure Costs and Asset Disposals - Narrative (Details) $ in Millions		3 Months Ended		6 Months Ended
	Apr. 02, 2024 USD ($)	Jul. 02, 2024 USD ($) restaurant leaseTermination	Jul. 04, 2023 restaurant	Jul. 02, 2024 USD ($) restaurant	Jul. 04, 2023 USD ($) restaurant
Discontinued Operations and Disposal Groups [Abstract]
Number of restaurants impaired \| restaurant		12	1	12	1
Number of restaurants with lease related assets written down \| restaurant		3	2	4	2
Increase to accrual for early lease terminations, partially offset by gains from lease remeasurements \| $		$ 0.6		$ 0.6
Number of upcoming early lease terminations \| leaseTermination		2
Number of restaurants closed \| restaurant		0		2	4
Offset adjustment to closure costs related to lease terminations \| $					$ 0.5
Number of restaurants related to disposal \| restaurant		6		6
Write-down or restaurant assets \| $	$ 0.0
Gain on sale of restaurants \| $		$ 0.5

Supplemental Financial Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jul. 02, 2024	Jan. 02, 2024
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 406,103	$ 415,358
Accumulated depreciation and amortization	(266,118)	(263,182)
Property and equipment, net	139,985	152,176
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	224,112	232,060
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	174,866	176,872
Construction in progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,125	$ 6,426

Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows

6 Months Ended

Jul. 02, 2024

Supplemental Cash Flow Elements [Abstract]

Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows

The following table presents the supplemental disclosures to the Condensed Consolidated Statements of Cash Flows for the two quarters ended July 2, 2024 and July 4, 2023 (in thousands):


	July 2, 2024		July 4, 2023
Interest paid (net of amounts capitalized)	$	3,588	$	1,594
Income taxes paid	25		132
Purchases of property and equipment accrued in accounts payable	2,293		5,609

Income Taxes (Tables)

6 Months Ended

Jul. 02, 2024

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The following table presents the Company’s provision for income taxes (in thousands):


	Fiscal Quarter Ended						Two Fiscal Quarters Ended
	July 2, 2024			July 4, 2023			July 2, 2024			July 4, 2023
Provision for (benefit from) income taxes	$	110		$	(30)		$	175		$	(103)
Effective tax rate	(0.8)		%	2.2		%	(0.9)		%	2.3		%

Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2024	Jul. 04, 2023
Supplemental Cash Flow Elements [Abstract]
Interest paid (net of amounts capitalized)	$ 3,588	$ 1,594
Income taxes paid	25	132
Purchases of property and equipment accrued in accounts payable	$ 2,293	$ 5,609

Stock-Based Compensation (Tables)

6 Months Ended

Jul. 02, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense

The following table shows total stock-based compensation expense (in thousands):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Stock-based compensation expense	$	1,347	$	1,496	$	2,534	$	2,886
Capitalized stock-based compensation expense	$	11	$	20	$	33	$	42

Restaurant Impairments, Closure Costs and Asset Disposals - Activity (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023
Discontinued Operations and Disposal Groups [Abstract]
Restaurant impairments	$ 10,933	$ 423	$ 11,104	$ 509
Closure costs	418	249	262	807
Loss on disposal of assets and other	706	937	1,920	1,862
Restaurant impairments, closure costs and asset disposals	$ 12,057	$ 1,609	$ 13,286	$ 3,178

Restaurant Impairments, Closure Costs and Asset Disposals

6 Months Ended

Jul. 02, 2024

Discontinued Operations and Disposal Groups [Abstract]

Restaurant Impairments, Closure Costs and Asset Disposals

The following table presents restaurant impairments, closure costs and asset disposals (in thousands):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Restaurant impairments (1)	$	10,933	$	423	$	11,104	$	509
Closure costs (1)	418		249		262		807
Loss on disposal of assets and other	706		937		1,920		1,862
	$	12,057	$	1,609	$	13,286	$	3,178

_____________________________

(1)Restaurant impairments and closure costs in all periods presented above include amounts related to restaurants previously impaired or closed. Closure costs in the first two quarters of 2024 include the impact of lease remeasurements related to the six Oregon restaurants sold to a franchisee in April of 2024.

Impairment is based on management’s current assessment of the expected future cash flows of a restaurant based on recent results and other specific market factors. Impairment expense is a Level 3 fair value measure and is determined by comparing the carrying value of restaurant assets to the estimated fair value of the restaurant assets at resale value, if any, and the right-of-use asset based on a discounted cash flow analysis utilizing market lease rates.

During the second quarter and the first two quarters of 2024, the Company recorded fixed asset impairment charges on twelve restaurants and wrote down lease related assets for three and four restaurants, respectively. In the second quarter of 2024, the Company performed a review of underperforming restaurants. Through this review, the Company identified a group of restaurants that the Company will seek to close on or before their next lease renewal dates, and are unlikely to recover the net book value of their assets. In the second quarter of 2023 and the first two quarters of 2023, the Company recognized one restaurant with fixed asset impairment and wrote down lease related assets on two restaurants. All periods include ongoing equipment costs for restaurants previously impaired.

Closure costs in the second quarter and first two quarters of 2024 include an estimated accrual of $0.6 million on two upcoming early lease terminations, partially offset by gains from lease remeasurements. The Company did not close any restaurants in the second quarter of 2024 and had two restaurant closures during the first two quarters of 2024. Closure costs in the first two quarters of 2023 include early lease termination settlement of $0.5 million, and ongoing costs related to the four restaurant closures in first two quarters of 2023, partially offset by gains from lease remeasurements. Both periods included ongoing expenses from restaurant closures in prior years.

During the second quarter and first two quarters of 2024, loss on disposal of assets and other includes a gain from the sale of six company-owned restaurants to a new franchisee (“DND Sale”) in April 2024. Based on the sales price, there was no write down of assets related to this transaction and a gain on sale of $0.5 million was recorded in the second quarter of 2024. Both periods include asset disposals in the normal course of business and sublease expense related to leases for which the Company remains obligated in connection with the divestiture of company-owned restaurants in previous years.

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 110	$ (30)	$ 175	$ (103)
Effective tax rate	(0.80%)	2.20%	(0.90%)	2.30%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Long-Term Debt - Narrative (Details)			6 Months Ended		24 Months Ended
Long-Term Debt - Narrative (Details)	Dec. 21, 2023	Jul. 27, 2022 USD ($)	Sep. 29, 2026	Jul. 02, 2024 USD ($)	Dec. 30, 2025	Jan. 02, 2024 USD ($)	Nov. 20, 2019 USD ($)
Line of Credit Facility [Line Items]
Cash and cash equivalents				$ 1,806,000		$ 3,013,000
Forecast
Line of Credit Facility [Line Items]
Lease Adjusted Leverage Ratio			4.25		4.50
Revolving credit facility
Line of Credit Facility [Line Items]
Long-Term Line of Credit				$ 85,900,000
Revolving credit facility \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate				8.42%
Revolving credit facility \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate				10.50%
Swingline subfacility
Line of Credit Facility [Line Items]
Long-Term Line of Credit				$ 600,000
Swingline subfacility \| Minimum
Line of Credit Facility [Line Items]
Interest rate during period				10.50%
2018 Credit Facility
Line of Credit Facility [Line Items]
Indebtedness				$ 86,500,000
Unamortized debt issuance costs				1,700,000
Letters of credit outstanding				3,000,000.0
Cash and cash equivalents				$ 1,800,000
2018 Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.50%
2018 Credit Facility \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.50%
2018 Credit Facility \| Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 125,000,000					$ 100,000,000
A&R Credit Agreement \| SOFR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.75%	1.50%
A&R Credit Agreement \| SOFR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	3.00%	2.50%
A&R Credit Agreement \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.75%	0.50%
A&R Credit Agreement \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%	1.50%

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 02, 2024	Jan. 02, 2024
Statement of Financial Position [Abstract]
Preferred stock, par value (USD per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares, issued	48,047,131	47,413,585
Common stock, shares, outstanding	45,623,260	44,989,714
Treasury shares	2,423,871	2,423,871

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2024	Jul. 04, 2023
Operating activities
Net loss	$ (19,765)	$ (4,419)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	14,737	12,687
Deferred income taxes	175	(103)
Restaurant impairments, closure costs and asset disposals	10,795	1,092
Amortization of debt issuance costs	274	180
Stock-based compensation	2,466	2,778
Gain on insurance proceeds for property damage	0	(62)
Changes in operating assets and liabilities:
Accounts receivable	1,188	1,425
Inventories	(428)	(215)
Prepaid expenses and other assets	(2,107)	(1,947)
Accounts payable	3,782	(703)
Income taxes	(25)	(132)
Operating lease assets and liabilities	(514)	(394)
Accrued expenses and other liabilities	1,150	199
Net cash provided by operating activities	11,728	10,386
Investing activities
Purchases of property and equipment	(17,827)	(23,913)
Insurance proceeds received for property damage	0	100
Proceeds from refranchising transactions	2,053	0
Net cash used in investing activities	(15,774)	(23,813)
Financing activities
Net (payments) borrowings from swing line loan	(4,212)
Net (payments) borrowings from swing line loan		3,971
Proceeds from borrowings on long-term debt	8,500	13,000
Payments on finance leases	(1,198)	(1,240)
Stock plan transactions and tax withholding on share-based compensation awards	(251)	(685)
Net cash provided by financing activities	2,839	15,046
Net (decrease) increase in cash and cash equivalents	(1,207)	1,619
Cash and cash equivalents
Beginning of period	3,013	1,523
End of period	$ 1,806	$ 3,142

Income Taxes

6 Months Ended

Jul. 02, 2024

Income Tax Disclosure [Abstract]

Income Taxes

The following table presents the Company’s provision for income taxes (in thousands):


	Fiscal Quarter Ended						Two Fiscal Quarters Ended
	July 2, 2024			July 4, 2023			July 2, 2024			July 4, 2023
Provision for (benefit from) income taxes	$	110		$	(30)		$	175		$	(103)
Effective tax rate	(0.8)		%	2.2		%	(0.9)		%	2.3		%

The effective tax rate for the second quarter and the first two quarters of 2024 and 2023, respectively, reflects the impact of the previously recorded valuation allowance. For the remainder of fiscal 2024, the Company does not anticipate material income tax expense or benefit as a result of the valuation allowance recorded. The Company will maintain the valuation allowance against deferred tax assets until there is sufficient evidence to support a full or partial reversal. The reversal of a previously recorded valuation allowance will generally result in a benefit from income tax.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 2: http://www.xbrl.org/2003/role/exampleRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147477891/740-270-50-1

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Restaurant Impairments, Closure Costs and Asset Disposals (Tables)

6 Months Ended

Jul. 02, 2024

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Restaurant Impairments, Closure Costs and Asset Disposals

The following table presents restaurant impairments, closure costs and asset disposals (in thousands):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Restaurant impairments (1)	$	10,933	$	423	$	11,104	$	509
Closure costs (1)	418		249		262		807
Loss on disposal of assets and other	706		937		1,920		1,862
	$	12,057	$	1,609	$	13,286	$	3,178

_____________________________

Supplemental Financial Information - Accrued Payroll and Benefits (Details) - USD ($) $ in Thousands	Jul. 02, 2024	Jan. 02, 2024
Supplemental Financial Information [Abstract]
Accrued payroll and related liabilities	$ 5,054	$ 5,205
Accrued bonus	1,368	698
Insurance liabilities	1,772	1,866
Accrued payroll and benefits	$ 8,194	$ 7,769

Leases - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Leases - Narrative (Details) - USD ($) $ in Millions	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023
Leases [Abstract]
Sublease income	$ 0.8	$ 0.8	$ 1.5	$ 1.6

Leases

6 Months Ended

Jul. 02, 2024

Leases [Abstract]

Leases

Supplemental balance sheet information related to leases is as follows (in thousands):


Classification		July 2, 2024		January 2, 2024
Assets
Operating	Operating lease assets, net	$	174,362	$	183,857
Finance	Property and equipment	2,381		3,440
Total leased assets		$	176,743	$	187,297
Liabilities
Current lease liabilities
Operating	Current operating lease liabilities	$	31,390	$	30,104
Finance	Accrued expenses and other current liabilities	1,900		2,337
Long-term lease liabilities
Operating	Long-term operating lease liabilities	174,626		186,285
Finance	Other long-term liabilities	769		1,469
Total lease liabilities		$	208,685	$	220,195

Sublease income recognized in the Condensed Consolidated Statements of Operations was $0.8 million and $0.8 million for the second quarters of 2024 and 2023, and $1.5 million and $1.6 million for the first two quarters of 2024 and 2023, respectively.

Supplemental disclosures of cash flow information related to leases are as follows (in thousands):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Cash paid for lease liabilities:
Operating leases	$	10,850	$	10,565	$	21,846	$	21,087
Finance leases	649		638		1,301		1,402
	$	11,499	$	11,203	$	23,147	$	22,489
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	3,986	$	6,759	$	6,396	$	13,774
Finance leases	16		35		90		177
	$	4,002	$	6,794	$	6,486	$	13,951

Leases

Supplemental balance sheet information related to leases is as follows (in thousands):


Classification		July 2, 2024		January 2, 2024
Assets
Operating	Operating lease assets, net	$	174,362	$	183,857
Finance	Property and equipment	2,381		3,440
Total leased assets		$	176,743	$	187,297
Liabilities
Current lease liabilities
Operating	Current operating lease liabilities	$	31,390	$	30,104
Finance	Accrued expenses and other current liabilities	1,900		2,337
Long-term lease liabilities
Operating	Long-term operating lease liabilities	174,626		186,285
Finance	Other long-term liabilities	769		1,469
Total lease liabilities		$	208,685	$	220,195

Supplemental disclosures of cash flow information related to leases are as follows (in thousands):


	Fiscal Quarter Ended				Two Fiscal Quarters Ended
	July 2, 2024		July 4, 2023		July 2, 2024		July 4, 2023
Cash paid for lease liabilities:
Operating leases	$	10,850	$	10,565	$	21,846	$	21,087
Finance leases	649		638		1,301		1,402
	$	11,499	$	11,203	$	23,147	$	22,489
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	3,986	$	6,759	$	6,396	$	13,774
Finance leases	16		35		90		177
	$	4,002	$	6,794	$	6,486	$	13,951

Business Summary and Basis of Presentation (Policies)	6 Months Ended
Business Summary and Basis of Presentation (Policies)	Jul. 02, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying interim unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of the Company, all adjustments considered necessary for the fair presentation of the Company’s results of operations, financial position and cash flows for the periods presented have been included and are of a normal, recurring nature. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for any interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements on Form 10-K have been condensed or omitted. The condensed consolidated balance sheet as of January 2, 2024 was derived from audited financial statements. These financial statements should be read in conjunction with the audited financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 2, 2024.
Fiscal Year	Fiscal Year The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. The Company’s fiscal quarters each contain 13 operating weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains 14 operating weeks. Fiscal year 2024, which ends on December 31, 2024, and fiscal year 2023, which ended on January 2, 2024, each contain 52 weeks. The Company’s fiscal quarter that ended July 2, 2024 is referred to as the second quarter of 2024, and the fiscal quarter ended July 4, 2023 is referred to as the second quarter of 2023.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure.” The ASU updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. The ASU is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company does not expect this to have a significant impact on its consolidated financial statements or related disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements and related disclosures.

Supplemental Financial Information - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Jul. 02, 2024	Jan. 02, 2024
Supplemental Financial Information [Abstract]
Prepaid insurance	$ 1,862	$ 928
Prepaid occupancy related costs	812	800
Prepaid expenses	3,246	2,127
Other current assets	24	24
Prepaid expenses and other assets	$ 5,944	$ 3,879

Leases - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023
Leases [Abstract]
Cash paid for operating lease liabilities	$ 10,850	$ 10,565	$ 21,846	$ 21,087
Cash paid for finance lease liabilities	649	638	1,301	1,402
Cash paid for lease liabilities	11,499	11,203	23,147	22,489
Right-of-use assets obtained in exchange for operating lease liabilities	3,986	6,759	6,396	13,774
Right-of-use assets obtained in exchange for finance lease liabilities	16	35	90	177
Right-of-use assets obtained in exchange for lease liabilities	$ 4,002	$ 6,794	$ 6,486	$ 13,951

Business Summary and Basis of Presentation (Details)	6 Months Ended
Business Summary and Basis of Presentation (Details)	Jul. 02, 2024 restaurant state segment
Franchisor Disclosure [Line Items]
Number of restaurants	473
Number of states with operations \| state	31
Number of operating segments \| segment	1
Number of reportable segments \| segment	1
Company-owned
Franchisor Disclosure [Line Items]
Number of restaurants	379
Franchise
Franchisor Disclosure [Line Items]
Number of restaurants	94

Supplemental Financial Information

6 Months Ended

Jul. 02, 2024

Supplemental Financial Information [Abstract]

Supplemental Financial Information

Accounts receivable consist of the following (in thousands):


	July 2, 2024		January 2, 2024
Delivery program receivables	$	1,629	$	1,869
Vendor rebate receivables	658		779
Franchise receivables	1,005		1,043
Other receivables	664		1,453
Accounts receivable	$	3,956	$	5,144

Prepaid expenses and other assets consist of the following (in thousands):


	July 2, 2024		January 2, 2024
Prepaid insurance	$	1,862	$	928
Prepaid occupancy related costs	812		800

Prepaid expenses	3,246		2,127
Other current assets	24		24
Prepaid expenses and other assets	$	5,944	$	3,879

Property and equipment, net, consists of the following (in thousands):


	July 2, 2024		January 2, 2024
Leasehold improvements	$	224,112	$	232,060
Furniture, fixtures and equipment	174,866		176,872
Construction in progress	7,125		6,426
	406,103		415,358
Accumulated depreciation and amortization	(266,118)		(263,182)
Property and equipment, net	$	139,985	$	152,176

Accrued payroll and benefits consist of the following (in thousands):


	July 2, 2024		January 2, 2024
Accrued payroll and related liabilities	$	5,054	$	5,205
Accrued bonus	1,368		698
Insurance liabilities	1,772		1,866
Accrued payroll and benefits	$	8,194	$	7,769

Accrued expenses and other current liabilities consist of the following (in thousands):


	July 2, 2024		January 2, 2024
Gift card liability	$	1,919	$	2,222
Occupancy related	1,823		1,066
Utilities	1,353		1,311
Current portion of finance lease liability	1,900		2,337

Other restaurant expense accruals	1,154		1,466
Other corporate expense accruals	5,695		4,548
Accrued expenses and other current liabilities	$	13,844	$	12,950

Supplemental Financial Information - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jul. 02, 2024	Jan. 02, 2024
Supplemental Financial Information [Abstract]
Gift card liability	$ 1,919	$ 2,222
Occupancy related	1,823	1,066
Utilities	1,353	1,311
Current portion of finance lease liability	1,900	2,337
Other restaurant expense accruals	1,154	1,466
Other corporate expense accruals	5,695	4,548
Accrued expenses and other current liabilities	$ 13,844	$ 12,950

Revenue Recognition	6 Months Ended
Revenue Recognition	Jul. 02, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Revenue Recognition Revenue Revenue consists of sales from restaurant operations, franchise royalties and fees, and sublease income. Revenue from the operation of company-owned restaurants is recognized when sales occur. The Company reports revenue net of sales tax collected from customers and remitted to governmental taxing authorities. Gift Cards The Company sells gift cards which do not have an expiration date, and it does not deduct non-usage fees from outstanding gift card balances. The Company recognizes revenue from gift cards when the gift card is redeemed by the customer or the Company determines the likelihood of the gift card being redeemed by the customer is remote (“gift card breakage”). The determination of the gift card breakage rate is based upon Company-specific historical redemption patterns. The Company has determined that approximately 14% of gift cards will not be redeemed and recognizes gift card breakage ratably over the estimated redemption period of the gift card, which is approximately 24 months. Gift card liability balances are typically highest at the end of each calendar year following increased gift card purchases during the holiday season. As of July 2, 2024 and January 2, 2024, the current portion of the gift card liability, $1.9 million and $2.2 million, respectively, was included in accrued expenses and other current liabilities, and the long-term portion amounting to $0.8 million and $1.0 million, respectively, was included in other long-term liabilities in the Condensed Consolidated Balance Sheets. Revenue recognized in the Condensed Consolidated Statements of Operations for the redemption of gift cards was $0.6 million for the second quarters of 2024 and 2023, and $1.6 million for the first two quarters of 2024 and 2023, respectively. Franchise Fees Royalties from franchise restaurants are based on a percentage of restaurant revenues and are recognized in the period the related franchised restaurants’ sales occur. Development and franchise fees, portions of which are collected in advance, are nonrefundable and are recognized in income ratably over the term of the related franchise agreement or recognized upon the termination of the agreement between the Company and the franchisee. The Company has determined that the initial franchise services are not distinct from the continuing rights or services offered during the term of the franchise agreement and should be treated as a single performance obligation; therefore, initial fees received from franchisees are recognized as revenue over the term of each respective franchise agreement, which is typically 20 years. Loyalty Program The Company operates the Noodles Rewards program, which is primarily a spend-based loyalty program. With each purchase, Noodles Rewards members earn loyalty points that can be redeemed for rewards, including free products. Using an estimate of the value of reward redemptions, we defer revenue associated with points earned, net of estimated points that will not be redeemed based upon the Company’s historical redemption patterns. Points generally expire after six months. Revenue is recognized in a future period when the reward points are redeemed. As of July 2, 2024 and January 2, 2024, the deferred revenue related to the rewards was $1.0 million and $0.9 million, respectively and is included in accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023
Earnings Per Share [Abstract]
Net loss	$ (13,625)	$ (1,304)	$ (19,765)	$ (4,419)
Shares:
Basic weighted average shares outstanding (in shares)	45,450,949	46,363,208	45,265,152	46,239,357
Effect of dilutive securities (in shares)	0	0	0	0
Diluted weighted average shares outstanding (in shares)	45,450,949	46,363,208	45,265,152	46,239,357
Loss per share:
Basic earnings (loss) per share (USD per share)	$ (0.30)	$ (0.03)	$ (0.44)	$ (0.10)
Diluted earnings (loss) per share (USD per share)	$ (0.30)	$ (0.03)	$ (0.44)	$ (0.10)
Anti-dilutive securities
Antidilutive securities excluded from computation of earnings (loss) per share	3,744,541	3,896,910	3,529,837	3,466,704

Supplemental Disclosures to Condensed Consolidated Statements of Cash Flows (Tables)

6 Months Ended

Jul. 02, 2024

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Disclosures to the Condensed Consolidated Statements of Cash Flows

The following table presents the supplemental disclosures to the Condensed Consolidated Statements of Cash Flows for the two quarters ended July 2, 2024 and July 4, 2023 (in thousands):


	July 2, 2024		July 4, 2023
Interest paid (net of amounts capitalized)	$	3,588	$	1,594
Income taxes paid	25		132
Purchases of property and equipment accrued in accounts payable	2,293		5,609

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023
Revenue:
Total revenue	$ 127,352	$ 125,154	$ 248,746	$ 251,231
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Other restaurant operating costs	23,925	22,594	47,389	46,605
General and administrative	13,568	12,463	26,611	26,104
Depreciation and amortization	7,367	6,437	14,737	12,687
Pre-opening	531	609	969	1,101
Restaurant impairments, closure costs and asset disposals	12,057	1,609	13,286	3,178
Total costs and expenses	138,870	125,434	264,360	253,738
Loss from operations	(11,518)	(280)	(15,614)	(2,507)
Interest expense, net	1,997	1,054	3,976	2,015
Loss before taxes	(13,515)	(1,334)	(19,590)	(4,522)
Provision for (benefit from) income taxes	110	(30)	175	(103)
Net loss	$ (13,625)	$ (1,304)	$ (19,765)	$ (4,419)
Loss per Class A and Class B common stock, combined
Basic (USD per share)	$ (0.30)	$ (0.03)	$ (0.44)	$ (0.10)
Diluted (USD per share)	$ (0.30)	$ (0.03)	$ (0.44)	$ (0.10)
Weighted average shares of Class A and Class B common stock outstanding, combined:
Basic (in shares)	45,450,949	46,363,208	45,265,152	46,239,357
Diluted (in shares)	45,450,949	46,363,208	45,265,152	46,239,357
Restaurant revenue
Revenue:
Total revenue	$ 124,732	$ 122,394	$ 243,734	$ 245,621
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Restaurant operating costs	30,858	30,700	60,558	61,725
Franchising royalties and fees, and other
Revenue:
Total revenue	2,620	2,760	5,012	5,610
Labor
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Restaurant operating costs	38,951	39,657	77,368	79,487
Occupancy
Restaurant operating costs (exclusive of depreciation and amortization shown separately below):
Restaurant operating costs	$ 11,613	$ 11,365	$ 23,442	$ 22,851

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Revenue Recognition (Details) - USD ($) $ in Thousands	Jul. 02, 2024	Jul. 04, 2023	Jul. 02, 2024	Jul. 04, 2023	Jan. 02, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected unredeemed percent			14.00%
Estimated redemption period			24 months
Gift card liability, current	$ 1,919		$ 1,919		$ 2,222
Revenue recognized for redemption of gift cards	600	$ 600	$ 1,600	$ 1,600
Period in which initial fees received from franchisees will be recognized as revenue			20 years
Loyalty program deferred revenue	1,000		$ 1,000		900
Accrued Expenses and Other Current Liabilities
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Gift card liability, current	1,900		1,900		2,200
Other Long-term Liabilities
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Gift card liability, non-current	$ 800		$ 800		$ 1,000