What was the accumulated earnings (deficit) for Checkersrallys, as indicated in the financial statement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- | | (98,648) | | Income tax expense (benefit) | | (24,723) | | 540 | | (7,542) | | Net income (loss) | $ | 21,260 | $ | (2,570) | $ | (91,106) |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(In Thousands)
| Successor | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Total Stockholders' Equity | ||||||
| Balances at June 17, 2023 | $ | - | $ | - | $ | - | $ | - | |
| Contribution from business combination | - | 97,819 | - | 97,819 | |||||
| Stock-based compensation | - | 132 | - | 132 | |||||
| Co-op retained earnings adjustment | - | - | (86) | (86) | |||||
| Net loss | - | - | (2,570) | (2,570) | |||||
| Balances at January 1, 2024 | - | 97,951 | (2,656) | 95,295 | |||||
| Stock-based compensation |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the consolidated financial statements include data regarding accumulated earnings (deficit). The provided statements show the accumulated earnings (deficit) for both the Successor and Predecessor periods.
For the Successor period, as of January 1, 2024, the accumulated earnings (deficit) was ($2,656). By December 30, 2024, the retained earnings (deficit) was $18,785. This indicates a significant turnaround in retained earnings during that period.
For the Predecessor period, the accumulated earnings (deficit) was ($326,643) as of December 28, 2020, and it continued to be a deficit, reaching ($490,057) by June 16, 2023. These figures reflect the financial performance before the Recapitalization Agreement, which led to the distinction between Successor and Predecessor periods. These figures are in thousands.