What was the net loss for Beef O Bradys for the year ending December 31, 2024?
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 company experienced a net loss of $739,889 for the year ending December 31, 2024. This figure is an important indicator of the company's financial performance during that period. A prospective franchisee should carefully consider this net loss in the context of Beef O Bradys's overall financial health and trends.
It's also important to note some additional financial details provided in the cash flow statement. For example, the statement includes adjustments to reconcile the net loss to net cash provided by operating activities. These adjustments include depreciation ($2,530,034), provision for credit loss on notes receivable ($10,013), amortization of debt issuance costs ($140,170), noncash operating lease expense ($3,672,108), and amortization of goodwill and intangible assets ($3,917,404). There was also a loss on store closure of $32,064 and a loss on disposal of long-lived assets of $581,957.
Furthermore, the cash flow statement details cash flows from investing activities, such as purchases of property and equipment (-$2,662,586), proceeds from disposal of property and equipment ($319,252), acquisition of intangible assets (-$195,323), net payments to note receivables ($79,893), and cash paid for business acquisitions (-$1,800,000). Cash flows from financing activities include distributions to members (-$2,093,481) and proceeds from notes payable to the bank ($1,000,000). Understanding these cash flow details can provide a more comprehensive view of Beef O Bradys's financial activities beyond just the net loss.
Given these figures, a potential franchisee should investigate the reasons behind the net loss and how Beef O Bradys plans to address it. Understanding the strategies for improving profitability and managing cash flow is crucial for assessing the long-term viability of the franchise. It would be prudent to discuss these financial results with the franchisor and seek professional financial advice before making any investment decisions.