What was the total amount Carvel spent on purchases of property, equipment and leasehold improvements during the fiscal year ended December 31, 2023?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
-------------------|-----------------| | | deficit | | Balance at December 25, 2022 | $ (605,206) | | Cash proceeds retained from the exercise of Parent's stock options | 257 | | Share-based compensation expense | 4,983 | | Cash distribution paid to Parent's shareholders | (162,487) | | Net income | 66,272 | | Balance at December 31, 2023 | (696,181) | | Cash proceeds retained from the exercise of Parent's stock options | 197 | | Share-based compensation expense | 2,978 | | Cash distribution paid to Parent's shareholders | (123,066) | | Net income | 56,198 | | Balance at December 29, 2024 | $ (759,874) |
Consolidated statements of cash flows
(In thousands)
| For the fiscal years ended: | December 29, 2024 | December 31, 2023 |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | $ 56,198 | $ 66,272 |
| Adjustments to reconcile net income to net cash provided by | ||
| operating activities: | ||
| Depreciation and amortization expense | 30,951 | 15,940 |
| Non-cash interest expense | 2,359 | 2,638 |
| Loss on debt extinguishment | - | 4,095 |
| Deferred income tax benefit | (10,089) | (2,601) |
| Asset impairment losses | 2,428 | 4,348 |
| Loss on disposed property, equipment and leasehold | ||
| improvements, net | 1,078 | 1,483 |
| Share-based compensation expense | 2,978 | 4,983 |
| Provision for credit losses | 729 | 29 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (7,952) | (3,643) |
| Inventories, prepaid expenses and other assets | (5,499) | (1,498) |
| Advertising funds | (2,809) | (4,421) |
| Accounts payable, accrued expenses and other liabilities | 1,532 | 3,605 |
| Deferred revenue | 3,747 | (1,758) |
| Operating lease assets and liabilities | (1,176) | (2,055) |
| Income tax receivables and payables, net | (3,769) | 278 |
| Net cash provided by operating activities | 70,706 | 87,695 |
| Cash flows from investing activities: | ||
| Acquisition of stores, bakeries and restaurants | (4,707) | (3,635) |
| Purchases of property, equipment and leasehold improvements | (27,879) | (28,338) |
| Proceeds from sale of stores, bakeries and restaurants | 318 | 251 |
| Net cash used in investing activities | (32,268) | (31,722) |
| Cash flows from financing activities: | ||
| Borrowings on revolving credit facility | 32,000 | 204,000 |
| Payments on revolving credit facility | (65,000) | (40,000) |
| Proceeds from securitized borrowings | 125,000 | 240,000 |
| Principal payments on debt | (9,950) | (10,550) |
| Payments on debt extinguishment | - | (287,625) |
| Payments on debt modification | - | (5 |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the company's total expenditure on purchases of property, equipment, and leasehold improvements for the fiscal year ending December 31, 2023, amounted to $28,338. This figure reflects the investments Carvel made in its physical assets and infrastructure during that year.
For a prospective franchisee, this number provides insight into Carvel's capital expenditure strategy. It demonstrates the level of investment Carvel is willing to make in its own operations, which can be an indicator of the company's commitment to maintaining and upgrading its facilities and equipment. This can translate to a more appealing and efficient business environment for franchisees.
It's important to note that this figure represents Carvel's spending and not the initial investment required by a new franchisee to set up their own Carvel location. Franchisees should refer to other sections of the FDD, such as Item 7, to understand their own potential costs for property, equipment, and leasehold improvements. Additionally, franchisees should inquire about any specific requirements or standards Carvel has for these types of investments to ensure compliance and alignment with the brand's overall image and operational efficiency.