What is the amount of inventories for Carls as of January 31, 2023?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
ion and consider whether a material inconsistency exists between the other information and the combined consolidated financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Nashville, Tennessee April 10, 2024
THE CKE SECURITIZATION ENTITIES COMBINED CONSOLIDATED BALANCE SHEETS (In thousands)
| January 31, 2024 | January 31, 2023 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 12,340 | $ 7,320 |
| Cash and cash equivalents - restricted | 15,942 | 16,053 |
| Accounts receivable, net | 21,748 | 20,699 |
| Due from affiliates | 425 | 539 |
| Inventories | 2,852 | 2,973 |
| Prepaid expenses | 470 | 173 |
| Other current assets | 79 | 83 |
| Total current assets | 53,856 | 47,840 |
| Property and equipment, net | 353,893 | 349,888 |
| Operating lease assets | 395,698 | 411,456 |
| Intangible assets, net | 777,538 | 793,030 |
| Other assets, net | 31,858 | 28,810 |
| Total assets | $ 1,612,843 | $ 1,631,024 |
| LIABILITIES AND MEMBERS' DEFICIT | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 11,800 | $ 11,800 |
| Current portion of finance leases | 1,515 | 1,268 |
| Current portion of operating leases | 73,773 | 76,242 |
| Accounts payable | 4,467 | 6,207 |
| Due to affiliates | 1,989 | 5,077 |
| Other current liabilities | 35,053 | 35,316 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the value of inventories as of January 31, 2023, was $2,973. This figure represents the total value of raw materials, work-in-progress, and finished goods that Carls held in its inventory at that specific point in time.
For a prospective franchisee, understanding the inventory value is crucial as it reflects the investment in supplies needed to operate the business. Efficient inventory management is essential to minimize waste, reduce storage costs, and ensure that the restaurant can meet customer demand without overstocking.
It's important to note that inventory values can fluctuate due to factors such as seasonality, changes in menu offerings, and supply chain disruptions. Therefore, franchisees should closely monitor their inventory levels and implement strategies to optimize inventory turnover. Carls franchisees should inquire about the typical inventory management practices and systems recommended or required by the franchisor to maintain optimal stock levels and minimize potential losses.