What was the depreciation and amortization expense for Bojangles as of December 31, 2023?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
| (dollars in thousands) | December 29, 2024 | December 31, 2023 | December 25, 2022 |
|---|---|---|---|
| Revenues | |||
| Company-operated restaurant revenues | $ 593,957 | $ 594,036 | $ 544,368 |
| Franchise royalty revenues | 47,116 | 42,204 | 39,311 |
| Property and equipment rental revenues | 9,609 | 8,939 | 9,955 |
| Other franchise revenues | 954 | 1,546 | 536 |
| Total revenues | 651,636 | 646,725 | 594,170 |
| Restaurant operating expenses | |||
| Company-operated restaurant food and packaging costs | 178,743 | 184,476 | 183,354 |
| Company-operated restaurant labor costs | 175,628 | 184,777 | 174,606 |
| Company-operated restaurant operating costs | 142,494 | 139,712 | 136,080 |
| Company-operated restaurant depreciation and amortization | 23,890 | 20,156 | 15,896 |
| Costs associated with property and equipment rentals | 9,462 | 7,193 | 8,543 |
| Total restaurant operating expenses | 530,217 | 536,314 | 518,479 |
| Operating income before other operating expenses | 121,419 | 110,411 | 75,691 |
| Other operating expenses | |||
| General and administrative | 20,832 | 18,163 | 18,057 |
| Depreciation and amortization | 36,107 | 36,109 | 36,138 |
| Restaurant closures and refranchising costs, net of gains | |||
| and related asset write-downs | 1,937 | 6,975 | 2,981 |
| Loss (gain) on disposal of property and equipment and other | 278 | (205) | 886 |
| Total other operating expenses | 59,154 | 61,042 | 58,062 |
| Operating income | 62,265 | 49,369 | 17,629 |
| Interest income | 2 | - | - |
| Interest expense | (258) | (138) | (162) |
| Net income | $ 62,009 | $ 49,231 | $ 17,467 |
Depreciation and amortization expense related to property and equipment was $25,035, $21,700, and $17,756 for the years ended December 29, 2024, December 31, 2023 and December 25, 2022, respectively.
Amortization expense related to franchise rights was $1,533, $1,533 and $1,534 for the years ended December 29, 2024, December 31, 2023 and December 25, 2022, respectively, and is included in depreciation and amortization expense in the accompanying financial statements.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, the total depreciation and amortization expense for the company as of December 31, 2023, was $36,109 thousand. This figure represents the expense recognized for the wearing out, consumption, or obsolescence of the company's assets, such as property, equipment, and intangible assets, over their useful lives. Depreciation applies to tangible assets, while amortization applies to intangible assets.
Additionally, the depreciation and amortization expense specifically related to property and equipment was $21,700 thousand for the year ended December 31, 2023. This indicates the portion of the total depreciation and amortization expense that is attributed to the company's physical assets. Furthermore, amortization expense related to franchise rights amounted to $1,533 thousand for the same period, which is included within the total depreciation and amortization expense.
For a prospective franchisee, understanding these expenses is crucial as they reflect the capital intensity and asset management practices of Bojangles. Higher depreciation and amortization expenses may suggest significant investments in assets that require ongoing maintenance and replacement. Monitoring these expenses can provide insights into the company's profitability, asset utilization efficiency, and overall financial health. Franchisees can use this information to assess the long-term sustainability and potential return on investment of a Bojangles franchise.