What was the reported net income for Carls in the later year presented in the table?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 |
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the net income for the fiscal year 2024 was $108,945. This figure represents the company's profit after all expenses, including the cost of operations, interest, and income taxes, have been deducted from its total revenues. This is a key indicator of the financial health and profitability of Carls.
In comparison, the net income for the previous fiscal year, 2023, was $97,797. The increase in net income from 2023 to 2024 suggests improved financial performance for Carls. Potential franchisees may find this trend encouraging, as it indicates the brand is growing and becoming more profitable.
It is important to note that these figures pertain to Carls's overall financial performance and may not directly reflect the potential profitability of an individual franchise. Prospective franchisees should conduct their own due diligence and consider various factors, such as location, operating costs, and market conditions, to assess the potential financial performance of their own Carls franchise.