What was the net value of Bojangles' inventories in 2024?

According to Bojangles' 2025 Franchise Disclosure Document, the company's inventories, net, which consist of food and paper products, were valued at $14,421,000 as of December 29, 2024. These inventories are reported at the lower of cost or net realizable value, with the cost determined using the first-in, first-out (FIFO) method. Bojangles maintains a provision for inventory spoilage, while marketing and maintenance supplies are expensed as purchased.

This valuation is a snapshot of the investment Bojangles has in its supplies at a specific point in time. For a franchisee, understanding how inventory is managed and valued is crucial because it directly impacts the cost of goods sold and, consequently, the profitability of the restaurant. The FIFO method assumes that the oldest inventory items are sold first, which can affect the reported income, especially during periods of inflation or deflation.

The fact that Bojangles maintains a provision for inventory spoilage indicates an awareness of potential losses due to waste, which is common in the restaurant industry. This provision is a safeguard against overstating the value of inventory. The expensing of marketing and maintenance supplies as purchased is a standard accounting practice that simplifies the tracking of these costs.

Overall, the inventory management and valuation policies described in the FDD reflect standard accounting practices within the restaurant industry. Prospective franchisees should pay close attention to these policies, as they can influence the financial performance and reporting of their Bojangles franchise.