When did Carls perform its annual goodwill impairment test for fiscal year 2024?

According to Carls's 2024 Franchise Disclosure Document, the company performed its annual impairment tests for goodwill and indefinite-lived intangible assets during the fourth quarter of fiscal year 2024. Carls used a qualitative approach and determined that it was more likely than not that the fair value was greater than the carrying value.

This qualitative approach means that Carls first assessed factors to determine if it was likely that the fair value of their reporting units (company-operated, domestic franchised, and international franchised restaurants) was less than their carrying amounts. If this assessment indicated a potential impairment, a quantitative test would then be performed to compare the fair values to the carrying values.

Since the qualitative assessment concluded that the fair value was likely greater than the carrying value, no further quantitative testing was required for fiscal year 2024. This process is important for franchisees to understand as it affects the overall financial health and reporting of Carls.