In Checkers' consolidated statements of operations, where is stock-based compensation recorded?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
-sixths vest in equal installments on each of the first four anniversaries of December 1, 2021 with 100% of the service-based vesting RSUs and performance-based RSUs vesting as of the consummation of a change of control subject to continued employment through the date of such change of control.
Noncash Compensation
The pretax stock-based compensation cost recognized under the Amended and Restated 2017 Management Incentive Plan was $5.7 million, $1.2 million, and $0.8 milli
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, stock-based compensation is recorded in "general and administrative expenses" within the consolidated statements of operations. This means that when Checkers grants stock options or other share-based payments to its employees and directors, the associated expense is categorized under the general and administrative expenses section of their financial statements.
For the period January 3, 2023 through June 16, 2023 (Predecessor) and for the years ended January 2, 2023 (Predecessor), and January 3, 2022 (Predecessor), the pretax stock-based compensation cost recognized under the Amended and Restated 2017 Management Incentive Plan was $5.7 million, $1.2 million, and $0.8 million, respectively. For the fiscal year ended December 30, 2024 (Successor) and the period June 17, 2023 through January 1, 2024 (Successor) stock-compensation expense recorded under the Management Incentive Plan was $0.5 million and $0.1 million, respectively.
This accounting practice aligns with standard financial reporting requirements, ensuring that these compensation costs are transparently disclosed. Prospective franchisees reviewing Checkers' financial statements can therefore find these expenses within the general and administrative expenses, providing a clear view of the company's stock-based compensation practices and their impact on overall expenses.