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What was the net income for Carls as of January 31, 2023?

Carls Franchise · 2024 FDD

Answer from 2024 FDD Document

Fiscal 2024 Fiscal 2023
Revenue:
Company-operated restaurants $ 368,842 $ 354,253
Franchised restaurants and other 292,713 290,831
Total revenue 661,555 645,084
Operating costs and expenses:
Company-operated restaurants:
Food and packaging 97,879 98,441
Payroll and other employee benefits 122,640 113,363
Occupancy and other 104,616 100,143
Total company-operated restaurants 325,135 311,947
Franchised restaurants and other 93,626 91,006
Advertising 20,726 19,276
General and administrative 47,953 55,948
Facility action charges, net 2,183 3,589
Total operating costs and expenses 489,623 481,766
Operating income 171,932 163,318
Interest expense (61,863) (62,752)
Other income, net 4,790 2,057
Income before income taxes 114,859 102,623
Income tax expense 5,914 4,826
Net income $ 108,945 $ 97,797

**THE CKE SECURITIZATION ENTITIES COMBINED

Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)

What This Means (2024 FDD)

According to Carls's 2024 Franchise Disclosure Document, the net income as of January 31, 2023, was $108,945. This figure represents the profit Carls accumulated after deducting all expenses from its revenues during that fiscal year.

For a prospective franchisee, net income is a crucial indicator of the financial health and profitability of Carls. A positive net income suggests that the company is operating efficiently and generating more revenue than it spends. This can be reassuring for potential investors as it demonstrates the brand's ability to sustain and grow its business operations.

However, it's important to consider this figure in the context of Carls's overall financial performance. Reviewing trends in net income over several years, as well as comparing it to industry benchmarks, can provide a more comprehensive understanding of the company's financial stability and growth potential. Additionally, prospective franchisees should investigate the factors contributing to the net income, such as revenue sources, cost management strategies, and any significant one-time events that may have influenced the results.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.