What was the net income (loss) for the CKE Securitization Entities combining consolidating statement of operations related to Carls in fiscal year 2022?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| | Carl's Jr. Restaurants LLC | Carl's Jr. FundingLLC | Carl's Jr. SPY Guarantor LLC | Hardee's Restaurants LLC | Hardee's FundingLLC | Hardee's SPY Guarantor LLC | Eliminations | The CKE Securitization Entities | |-------------------------------------|-------------------------------|--------------------------|---------------------------------|-----------------------------|------------------------|-------------------------------|--------------------|---------------------------------------| | Revenue: | | | | | | | | | | Company-operated restaurants $ | 111 ,433 | $ | $ | $ 242,820 | $ | $ | $ | 354,253 $ | | Franchised restaurants and other | 168,244 | 5,579 | | 122,587 | 11,835 | | (17,414) | 290,831 | | Total revenue | 279,677 | 5,579 | | 365,407 | 11 ,835 | | (17,414) | 645,084 | | Operating costs and expenses: | | | | | | | | | | Company-operated restaurants: | | | | | | | | | | Food and packaging | 28,226 | | | 70,215 | | | | 98,441 | | Payroll and other employee benefits | 34,365 | | | 81 ,844 | | | | I 16,209 | | Occupancy and other | 33,772 | | | 80,939 | | | (17,414) | 97,297 | | Total company-operated restaurants | 96,363 | | | 232,998 | | | (17,414) | 311 ,947 | | Franchised restaurants and other | 66,917 | | | 24,089 | | | | 91 ,006 | | Advertising | 6,774 | | | 12,502 | | | | 19,276 | | General and administrative | 6,694 | 23,462 | I | (724) | 26,515 | | | 55,948 | | Facility action charges, net | 526 | | | 3,063 | | | | 3,589 | | Total operating costs and expenses | 177,274 | 23,462 | I | 271 ,928 | 26,515 | | (17,414) | 481 ,766 | | Operating income (loss) | 102,403 | (17,883) | (I) | 93,479 | (14,680) | | | 163,318 | | Interest expense | (1 ,557) | (27,649) | | (6,021) | (27,525) | | | (62,752) | | Other income (loss), net | 1,13 I | 96,478 | 60,645 | 690 | 80,449 | 33,389 | (270,725) | 2,057 | | Income (loss) before income taxes | 101 ,977 | 50,946 | 60,644 | 88,148 | 38,244 | 33,389 | (270,725) | 102,623 | | Income tax expense | 3,282 | | | 1,544 | | | | 4,826 | | Net income (loss) $ | 98,695 | $ 50,946 | $ 60,644 | $ 86,604 | $ 38,244 | $ 33,389 | $ ~270,7251 $ | 97,797 |
THE CKE SECURITIZA TION ENTITIES COMBINING CONSOLIDATING STATEMENT OF OPERATIONS (In thousands)
Fiscal 2022 The CKE Carl's Jr. Carl's Jr. Carl's Jr. SPY Hardee's Hardee's Hardee's SPY Securitization Restaurants LLC FundingLLC Guarantor LLC Restaurants LLC FundingLLC Guarantor LLC Eliminations Entities Revenue: Company-operated restaurants ....................................................... $ I 14,008 $ $ $ 241 ,909 $ $ $ $ 355,917 Franchised restaurants and other .................................................... 166,547 5,699 123,880 11,759 (17,458) 290,427 Total revenue ........................................................................ 280,555 5,699 365,789 11 ,759 (17,458) 646,344 Operating costs and expenses: Company-operated restaurants: Food and packaging .................................................................. 28,251 72,327 100,578 Payroll and other employee benefits ......................................... 33,201 77,325 I 10,526 Occupancy and other. ................................................................ 32,695 72,348 (17,458) 87,585 Total company-operated restaurants .................................... 94,147 222,000 (17,458) 298,689 Franchised restaurants and other .................................................... 68,839 26,809 95,648 Advertising ..................................................................................... 6,990 12,414 19,404 General and administrative ............................................................. 13,775 23,930 (I) (1 ,222) 26,866 63,348 Facility action charges, net ............................................................. (4,4 I I) 1,458 (2,953) Total operating costs and expenses ...................................... 179,340 23,930 (I) 261 ,459 26,866 (17,458) 474,136 Operating income (loss) .........................................
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 for the CKE Securitization Entities combining consolidating statement of operations related to Carls Jr. in fiscal year 2022 was $97,215,000. The net income for Hardee's SPY was $96,333,000. The total net income for the CKE Securitization Entities was $105,799,000.
It is important to note that these figures are in thousands of dollars. The CKE Securitization Entities include Carl's Jr. Restaurants LLC, Carl's Jr. SPV Guarantor LLC, Carl's Jr. Funding LLC, Hardee's Restaurants LLC, Hardee's SPV Guarantor LLC, and Hardee's Funding LLC.
A prospective franchisee should consider these figures in the context of the overall financial health of the CKE Securitization Entities. While net income is an important indicator, it is also important to consider revenue, expenses, assets, and liabilities. Additionally, a prospective franchisee should be aware that past performance is not necessarily indicative of future results.