What was the net cash provided by operating activities for Beef O Bradys in 2023?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | ||
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Net loss | $ ( 739,889) | $ ( 880,345) | |
| Adjustments to reconcile net loss to net cash provided by operating | |||
| activities: | |||
| Depreciation | 2,530,034 | 2,734,361 | |
| Provision for credit loss on notes receivable | 10,013 | 20,208 | |
| Amortization of debt issuance costs | 140,170 | 80,078 | |
| Noncash operating lease expense | 3,672,108 | 2,657,350 | |
| Amortization of goodwill and intangible assets | 3,917,404 | 3,535,155 | |
| Loss on store closure | 32,064 | 730,442 | |
| Loss on disposal of long-lived assets | 581,957 | - | |
| Loss on extinguishment of debt | - | 274,775 | |
| Paid-in-kind interest | - | 526,156 | |
| Changes in operating assets and liabilities | |||
| Franchisee receivables | ( 177,276) | 35,787 | |
| Vendor rebate receivable | 4,539 | 32,484 | |
| Other receivables | 46,685 | 192,925 | |
| Inventories | 94,750 | ( 40,771) | |
| Due from related parties | ( 351,267) | 409,686 | |
| Prepaid expense and other current assets | 11,988 | ( 28,158) | |
| Other assets | ( 84,460) | 13,297 | |
| Accounts payable and accrued expenses | ( 372,138) | 827,315 | |
| Deferred revenue | 134,951 | ( 194,892) | |
| Changes in operating leases | ( 3,846,622) | ( 2,634,362) | |
| Net Cash Provided by Operating Activities | 5,605,011 | 8,291,491 | |
| Cash Flows from Investing Activities | |||
| Purchases of property and equipment | ( 2,662,586) | ( 2,022,129) | |
| Proceeds from disposal of property and equipment | 319,252 | - | |
| Acquisition of intangible asset | ( 195,323) | - | |
| Net payments (advances) to note receivables | 79,893 | - | |
| Cash paid for business acquisitions | ( 1,800,000) | ( 1,720,462) | |
| Net Cash Used in Investing Activities | ( 4,258,764) | ( 3,742,591) | |
| Cash Flows from Financing Activities | |||
| Payments made for debt issuance costs | - | ( 700,862) | |
| Distributions to members | ( 2,093,481) | ( 1,000,000) | |
| Proceeds from notes payable to bank | 1,000,000 | 27,913,083 | |
| Payments on notes payable to bank | - | ( 18,782,628) | |
| Payments on notes payable to related parties | - | ( 12,853,731) | |
| Net Cash Used in Financing Activities | ( 1,093,481) | ( 5,424,138) | |
| Net Change in Cash | 252,766 | ( 875,238) | |
| Cash, Beginning of Year | 2,991,709 | 3,866,947 | |
| Cash, End of Year | $ 3,244,475 | $ 2,991,709 | |
| Supplemental Disclosures of Cash Flows Information | |||
| Cash paid during the year for interest | $ 2,584,268 | $ 2,879,965 | |
| Past due franchisee receivables converted to notes | $ 122,310 | $ 45,332 | |
| Right-of-use assets obtained in exchange for lease obligations | |||
| during the year | $ 1,809,042 | $ 1,897,777 | |
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Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $8,291,491.
This figure represents the cash generated from the company's core business operations during the specified year. It's a key indicator of Beef O Bradys's financial health, showing how well the company generates cash to cover its operating expenses.
For a prospective franchisee, a strong net cash flow from operating activities suggests that the Beef O Bradys system is generally profitable and efficient in its operations. This can be a positive sign, indicating that franchisees have the potential to generate sufficient cash flow to cover their own operating expenses and potentially achieve profitability. However, it is important to note that this is a consolidated figure, and individual franchisee performance may vary.
It is important for potential franchisees to investigate further and understand the factors contributing to this cash flow, such as revenue streams, cost management, and overall economic conditions. Additionally, they should compare this figure with previous years and industry benchmarks to assess the long-term sustainability and competitiveness of the Beef O Bradys franchise system.