Document and Entity Information Document
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3 Months Ended | ||
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Mar. 31, 2015
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May 04, 2015
Common Class A [Member]
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May 04, 2015
Common Class B [Member]
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Document Information [Line Items] | |||
Entity Registrant Name | NOODLES & Co | ||
Entity Central Index Key | 0001275158 | ||
Current Fiscal Year End Date | --12-29 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2015 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 28,472,204 | 1,522,098 |
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End date of current fiscal year in the format --MM-DD. No definition available.
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This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD. No definition available.
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A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Indicate number of shares or other units outstanding of each of registrant's classes of capital or common stock or other ownership interests, if and as stated on cover of related periodic report. Where multiple classes or units exist define each class/interest by adding class of stock items such as Common Class A [Member], Common Class B [Member] or Partnership Interest [Member] onto the Instrument [Domain] of the Entity Listings, Instrument. No definition available.
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Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, (4) Smaller Reporting Company (Non-accelerated) or (5) Smaller Reporting Accelerated Filer. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Consolidated Balance Sheets (Parenthetical) (USD $)
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Mar. 31, 2015
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Dec. 30, 2014
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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 | 29,785,717 | 29,544,557 |
Common stock, shares, outstanding | 29,785,717 | 29,544,557 |
Treasury stock, shares | 67,586 | 65,478 |
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The gains and losses included in earnings resulting from the sale or disposal of tangible assets, asset impairment charges resulting from the write down of assets from their carrying value to their fair value, and costs incurred associated with an exit or disposal activity other than for a discontinued operations. Costs of such activities include those for one-time termination benefits, termination of an operating lease or other contract, but excludes costs associated with the retirement of a long-lived asset. No definition available.
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Consolidated Statements of Comprehensive Income Statement (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
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Mar. 31, 2015
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Apr. 01, 2014
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Net (loss) income | $ (2,752) | $ 1,424 |
Cash flow hedges: | ||
Foreign currency translation adjustments | (11) | 0 |
Other comprehensive loss | (11) | 0 |
Comprehensive (loss) income | $ (2,763) | $ 1,424 |
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Increase (Decrease) in Accrued Liabilities and Other Liabilities No definition available.
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Increase (Decrease) In Deferred Rent No definition available.
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Noncash or Part Noncash Asset Disposals, Closure Costs And Restaurant Impairments No definition available.
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Payments for Settlement of Outstanding Options No definition available.
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Business and Summary and Basis of Presentation
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3 Months Ended |
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Mar. 31, 2015
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary and Basis of Presentation | Business and Summary and Basis of Presentation Business Noodles & Company, (the "Company" or "Noodles & Company"), a Delaware corporation, develops and operates fast casual restaurants that serve globally inspired noodle and pasta dishes, soups, salads and sandwiches. As of March 31, 2015, there were 399 company-owned restaurants and 56 franchise restaurants in 33 states and the District of Columbia. The Company operates its business as one operating and reportable segment. The accompanying interim unaudited 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 generally accepted accounting principles in the United States ("U.S. 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 results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. 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 December 30, 2014. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All material intercompany balances and transactions are eliminated in consolidation. Fiscal Year The Company operates on a 52- or 53-week fiscal year ending on the Tuesday closest to December 31. Fiscal year 2015, which ends on December 29, 2015, and fiscal year 2014, which ended on December 30, 2014, each contain 52 weeks. Fiscal quarters each contain thirteen weeks, with the exception of the fourth quarter of a 53-week fiscal year, which contains fourteen weeks. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and International Financial Reporting Standards ("IFRS"). The pronouncement is effective for annual and interim periods beginning after December 15, 2016, which will require the Company to adopt these provisions in the first quarter of fiscal 2017. Early adoption is not permitted. This pronouncement permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect this guidance will have on the Company's consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updated ("ASU"), "Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern." This update requires management of the Company to evaluate whether there is substantial doubt about the Company’s ability to continue as a going concern. This update is effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company does not expect this standard to have an impact on the Company’s consolidated financial position or results of operations. In April 2015, the FASB issued ASU No. 2015-03, "Interest-Imputation of Interest (subtopic 835-50): Simplifying the Presentation of Debt Issuance Costs." This update requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by this update. The update is effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company's consolidated financial statements. |
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Supplemental Financial Information
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Mar. 31, 2015
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Supplemental Financial Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Information | Supplemental Financial Information Property and equipment, net, consist of the following (in thousands):
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Borrowings
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Mar. 31, 2015
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Debt Disclosure [Abstract] | |
Borrowings | Borrowings The Company has a credit facility with a borrowing capacity of $45.0 million in the form of a revolving line of credit, expiring in November 2018. As of March 31, 2015, the Company had $22.5 million outstanding and $19.6 million available for borrowing under the credit facility. Outstanding letters of credit aggregating $2.9 million reduce the amount available to borrow. The credit facility bore interest at 3.50% during the first quarter of 2015. The Company was in compliance with all of its debt covenants as of March 31, 2015. |
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Fair Value Measurements
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3 Months Ended |
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Mar. 31, 2015
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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 fair values due to the short maturities of these instruments. The carrying amounts of borrowings approximate fair value as interest rates on the the line of credit borrowings vary with market interest rates and negotiated terms and conditions are consistent with current market rates. The fair value of our line of credit borrowings is measured using Level 2 inputs. Adjustments to the fair value of non-financial assets measured at fair value on a non-recurring basis as of March 31, 2015 are discussed in Note 7-Restaurant Impairments, Asset Disposals and Closure Costs. There were no adjustments to the fair values of non-financial assets measured at fair value on a non-recurring basis as of April 1, 2014. |
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Income Taxes
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Mar. 31, 2015
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Income Taxes | Income Taxes The following table presents the Company's (benefit) provision for income taxes for the first quarter ended March 31, 2015 and April 1, 2014 (dollars in thousands):
The 2015 estimated annual effective tax rate is expected to be between 39% and 40% compared to 38.4% for 2014. The effective tax rate for the first quarter of 2015 reflects a projected federal tax rate of 34%, compared to 35% for the first quarter of 2014. |
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Stock-Based Compensation
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Mar. 31, 2015
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company's Stock Incentive Plan, as amended and restated in May of 2013, authorizes the grant of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units and incentive bonuses to employees, officers, non-employee directors and other service providers. The number of shares of common stock available for issuance pursuant to awards granted under the Stock Incentive Plan shall not exceed 3,750,500. 6. Stock-Based Compensation (continued) The following table presents information related to the Stock Incentive Plan (in thousands, except share and per share amounts):
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Asset Disposals, Closure Costs and Restaurant Impairments (Notes)
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Mar. 31, 2015
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Restaurant Impairments, Asset Disposals and Closure Costs | Restaurant Impairments, Asset Disposals and Closure Costs The following table presents restaurant impairments, asset disposals and closure costs for the first quarter ended March 31, 2015 and April 1, 2014 (in thousands):
During the quarter ended March 31, 2015, the Company recognized restaurant impairment expense of $5.9 million, primarily related to management's current assessment of the expected future cash flows at eight restaurants, based on recent results. Impairment expense is a Level 3 fair value measure and was determined by comparing the carrying value of restaurant assets to the estimated fair market value, which is based on projected cash flows. Fair value is generally determined based on appraisals or sales prices of comparable assets and estimates of future cash flows. These expenses are included in the "Restaurant impairment, asset disposals and closure costs" line in the Consolidated Statements of Income. |
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Earnings Per Share
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Mar. 31, 2015
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Earnings per share ("EPS") is calculated by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share ("diluted EPS") is calculated using income 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 and warrants. 8. Earnings Per Share (continued) The following table sets forth the computations of basic and diluted earnings per share:
Potential common shares are excluded from the computation of diluted (loss) earnings per share when the effect would be anti-dilutive. All potential common shares are anti-dilutive in periods of net loss. In the first quarters of 2015 and 2014, there were 3,225,078 and 17,000 outstanding options, respectively, excluded from the diluted earnings per share calculation because they were anti-dilutive. Additionally, 18,000 outstanding warrants were anti-dilutive and were excluded in the calculation of diluted earnings per share for the first quarter of 2015. |
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Supplemental Disclosures to Consolidated Statements of Cash Flows
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Mar. 31, 2015
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Supplemental Disclosures to Consolidated Statements of Cash Flows | Supplemental Disclosures to Consolidated Statements of Cash Flows The following table presents the supplemental disclosures to the consolidated statements of cash flows for the first quarters ended March 31, 2015 and April 1, 2014 (in thousands):
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Commitments and Contingencies
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Mar. 31, 2015
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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, including those matters that the Company has previously disclosed and for which there is no material update. Consequently, the Company is unable to ascertain the ultimate aggregate amount of monetary liability or financial impact with respect to these matters as of March 31, 2015. These matters could affect the operating results of any one financial reporting period when resolved in future periods. Management believes that an unfavorable outcome with respect to these matters is remote or a potential range of loss is not material to the Company's 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 the Company's business, financial condition, results of operations or cash flows. |
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- Definition
No authoritative reference available. No definition available.
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Business and Summary and Basis of Presentation (Policies)
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3 Months Ended |
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Mar. 31, 2015
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Noodles & Company and its subsidiaries. All material intercompany balances and transactions are eliminated in consolidation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
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- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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- Details
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Supplemental Financial Information (Tables)
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2015
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Supplemental Financial Information [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment, net, consist of the following (in thousands):
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- Definition
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Income Taxes (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2015
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Provision for Income Taxes | The following table presents the Company's (benefit) provision for income taxes for the first quarter ended March 31, 2015 and April 1, 2014 (dollars in thousands):
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- Definition
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Stock-Based Compensation (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2015
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table presents information related to the Stock Incentive Plan (in thousands, except share and per share amounts):
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- Definition
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Asset Disposals, Closure Costs and Restaurant Impairments (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2015
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Property, Plant and Equipment Impairment or Disposal [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Assets to be Disposed of by Method Other than Sale | The following table presents restaurant impairments, asset disposals and closure costs for the first quarter ended March 31, 2015 and April 1, 2014 (in thousands):
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- Definition
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Earnings Per Share (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2015
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following table sets forth the computations of basic and diluted earnings per share:
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Supplemental Disclosures to Consolidated Statements of Cash Flows (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2015
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | The following table presents the supplemental disclosures to the consolidated statements of cash flows for the first quarters ended March 31, 2015 and April 1, 2014 (in thousands):
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Business and Summary and Basis of Presentation (Details) (USD $)
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3 Months Ended | 12 Months Ended |
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Mar. 31, 2015
segment
state
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Dec. 30, 2014
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Franchisor Disclosure [Line Items] | ||
Number of states in which Noodles & Company operates | 33 | |
Number of operating segments | 1 | |
Number of reportable segments | 1 | |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Number of weeks in fiscal year | 364 days | 364 days |
Company-Owned [Member]
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Franchisor Disclosure [Line Items] | ||
Number of restaurants | 399 | |
Franchise [Member]
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Franchisor Disclosure [Line Items] | ||
Number of restaurants | 56 |
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Number of Weeks in Fiscal Year No definition available.
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Supplemental Financial Information (Property and Equipment) (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2015
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Dec. 30, 2014
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Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 335,377 | $ 334,900 |
Accumulated depreciation and amortization | (133,492) | (129,327) |
Property and equipment, net | 201,885 | 205,573 |
Leasehold Improvements [Member]
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Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 210,555 | 208,678 |
Furniture, Fixtures, and Equipment [Member]
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Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 115,783 | 114,148 |
Construction in Progress [Member]
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Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,039 | $ 12,074 |
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Borrowings (Details) (USD $)
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3 Months Ended |
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Mar. 31, 2015
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Line of Credit Facility [Line Items] | |
Amount outstanding | $ 22,500,000 |
Remaining borrowing capacity | 19,600,000 |
Letters of credit outstanding | 2,900,000 |
Revolving Line of Credit [Member]
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Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 45,000,000 |
Minimum [Member]
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Line of Credit Facility [Line Items] | |
Interest rate | 3.50% |
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No authoritative reference available. No definition available.
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Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2015
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Apr. 01, 2014
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Dec. 30, 2014
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Income Tax Contingency [Line Items] | |||
(Benefit) provision for income taxes | $ (1,795) | $ 1,012 | |
Effective tax rate | 39.50% | 41.50% | 38.40% |
Income tax rate | 34.00% | 35.00% | |
Minimum [Member]
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Income Tax Contingency [Line Items] | |||
Estimated effective tax rate | 39.00% | ||
Maximum [Member]
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Income Tax Contingency [Line Items] | |||
Estimated effective tax rate | 40.00% |
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- Definition
Effective Income Tax Rate Reconciliation, Estimate of Annual Effective Tax Rate for Current Year, Percent No definition available.
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Stock-Based Compensation (Narrative) (Details) (IPO [Member])
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May 31, 2013
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IPO [Member]
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Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Maximum shares reserved for issuance | 3,750,500 |
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- Definition
No authoritative reference available. No definition available.
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Stock-Based Compensation (Stock Incentive Plan) (Details) (Stock Option [Member], USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2015
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Apr. 01, 2014
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Stock Option [Member]
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Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period | 3,245,264 | 3,309,872 |
Granted | 176,016 | 0 |
Exercised | 122,887 | 142,249 |
Forfeited | 73,315 | 9,709 |
Outstanding, end of period | 3,225,078 | 3,157,914 |
Weighted average fair market value on option grant date | $ 6.23 | |
Stock based compensation expense | $ 161 | $ 140 |
Capitalized stock based compensation expense | $ 41 | $ 18 |
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- Definition
Share-based Compensation Arrangement by Share-based Payment Award, Options, Cancelled in Period No definition available.
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- Definition
No authoritative reference available. No definition available.
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No authoritative reference available. No definition available.
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Asset Disposals, Closure Costs and Restaurant Impairments (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2015
restaurant
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Apr. 01, 2014
|
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Property, Plant and Equipment Impairment or Disposal [Abstract] | ||
Restaurant impairments | $ 5,913 | |
Loss on disposal of assets | 134 | 134 |
Closure costs and other | 39 | 80 |
Total | $ 6,086 | $ 214 |
Number of restaurants | 8 |
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- Definition
Impairment Closure Costs And Other No definition available.
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- Definition
Number Of Restaurants Impaired No definition available.
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- Definition
No authoritative reference available. No definition available.
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No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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Earnings Per Share (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2015
|
Apr. 01, 2014
|
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net (loss) income | $ (2,752) | $ 1,424 |
Shares: | ||
Basic weighted average shares outstanding (in shares) | 29,843,204 | 29,606,321 |
Dilutive stock options and warrants (in shares) | 0 | 1,453,003 |
Diluted weighted average number of shares outstanding (in shares) | 29,843,204 | 31,059,324 |
Earnings per share: | ||
Basic EPS (USD per share) | $ (0.09) | $ 0.05 |
Diluted EPS (USD per share) | $ (0.09) | $ 0.05 |
Antidilutive securities excluded from computation of earnings per share | 3,225,078 | 17,000 |
Warrant [Member]
|
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Earnings per share: | ||
Antidilutive securities excluded from computation of earnings per share | 18,000 |
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- Definition
No authoritative reference available. No definition available.
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- Definition
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Acquisition of Franchised Restaurants (Details) (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2015
|
Dec. 30, 2014
|
---|---|---|
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||
Goodwill | $ 6,400 | $ 6,400 |
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- Details
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- Definition
No authoritative reference available. No definition available.
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Supplemental Disclosures to Consolidated Statements of Cash Flows (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2015
|
Apr. 01, 2014
|
|
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid (net of amounts capitalized) | $ 0 | $ 73 |
Income taxes paid | 0 | 81 |
Changes in purchases of property and equipment accrued in accounts payable, net | $ 0 | $ 1,020 |
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- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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- Details
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