What was the net income for Carls as of January 31, 2023?
Carls Franchise · 2024 FDDAnswer 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.