What were the total costs and expenses for Checkers for the year ended December 30, 2024?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
| Successor | Predecessor | |||||||
|---|---|---|---|---|---|---|---|---|
| Year Ended December 30, 2024 | Period from June 17, 2023 through January 1, 2024 | Period from January 3, 2023 through June 16, 2023 | ||||||
| Revenues | ||||||||
| Restaurant sales | $ | 255,474 | $ | 141,217 | $ | 130,191 | ||
| Franchise and retail royalty revenue | 35,389 | 18,608 | 15,385 | |||||
| Franchise fees and other income | 9,518 | 5,317 | 4,061 | |||||
| Total revenues | 300,381 | 165,142 | 149,637 | |||||
| Costs and expenses | ||||||||
| Restaurant food and paper costs | 81,660 | 45,102 | 41,194 | |||||
| Restaurant labor costs | 79,230 | 44,446 | 38,348 | |||||
| Restaurant occupancy costs | 22,378 | 11,778 | 11,145 | |||||
| Restaurant depreciation | 5,871 | 2,524 | 7,529 | |||||
| Other restaurant operating expenses | 34,053 | 20,357 | 17,423 | |||||
| General and administrative expenses | 39,215 | 19,435 | 36,471 | |||||
| Franchise support and service expenses | 5,226 | 3,634 | 1,696 | |||||
| Advertising expense | 14,397 | 8,077 | 6,810 | |||||
| Other depreciation and amortization | 3,441 | 2,093 | 900 | |||||
| Restaurant retirement costs | 139 | 300 | 596 | |||||
| Impairment of long-lived assets | 2,384 | 623 | 66,633 | |||||
| Net loss on disposal of fixed assets | 64 | 670 | 839 | |||||
| Total costs and expenses | 288,058 | 159,039 | 229,584 | |||||
| Operating income (loss) | 12,323 | 6,103 | (79,947) | |||||
| Other income (expense) | ||||||||
| Interest expense | (15,789) | (8,134) | (18,326) | |||||
| Other income (expense) | 3 | 1 | (375) | |||||
| Total other (expense) income | (15,786) | (8,133) | (18,701) | |||||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the total costs and expenses for the year ended December 30, 2024, were $288,058. This figure is derived from the Successor period following a Recapitalization Agreement, as detailed in the financial statements. It's important to note that this period represents the fiscal year ended December 30, 2024.
This total encompasses various operational costs, including restaurant food and paper costs ($81,660), restaurant labor costs ($79,230), and restaurant occupancy costs ($22,378). Additionally, it includes expenses such as general and administrative expenses ($39,215), advertising expense ($14,397), and franchise support and service expenses ($5,226). Depreciation and amortization expenses are also factored in, with restaurant depreciation at $5,871 and other depreciation and amortization at $3,441.
Other costs contributing to the total include impairment of long-lived assets ($2,384) and restaurant retirement costs ($139). These figures provide a comprehensive overview of the costs Checkers incurred during this period. A prospective franchisee should carefully review these expenses to understand the financial dynamics of the company and how these costs might impact their own franchise's profitability.
Understanding these costs is crucial for potential franchisees as it provides insight into the financial health and operational efficiency of Checkers. By examining these figures, franchisees can better assess the potential risks and rewards associated with investing in a Checkers franchise.