What was the total lease cost for Chick Fil A in 2022?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Cash flows from operating activities | |||||
| Net earnings | $ 1,044,197,186 | $ 1,057,994,661 | $ 988,734,304 | ||
| Adjustments to reconcile net earnings to net cash | |||||
| provided by operating activities | |||||
| Depreciation and amortization | 1,053,950,178 | 864,699,465 | 706,100,732 | ||
| Amortization of operating leases | 134,210,083 | 127,965,101 | 124,274,339 | ||
| Loss on disposal of property and equipment | 74,184,483 | 79,148,723 | 61,702,582 | ||
| Deferred income taxes | 36,833,786 | 59,386,075 | 66,483,500 | ||
| (Gain) loss on investments | (34,325,437) | (28,146,799) | 77,904,532 | ||
| Noncash interest expense | 609,277 | 709,999 | 738,522 | ||
| Changes in assets and liabilities | |||||
| Receivables | 6,439,362 | (6,038,525) | 30,218,226 | ||
| Inventories | (12,199,169) | (4,870,491) | (26,418,092) | ||
| Prepaid expenses and other assets | 7,200,351 | (37,838,348) | (95,088,403) | ||
| Accounts payable | (1,440,773) | 68,675,581 | 52,325,330 | ||
| Accrued expenses and obligations | 124,524,288 | 147,362,178 | 55,272,424 | ||
| Operating lease liabilities | (100,329,850) | (102,919,364) | (102,362,843) | ||
| Income taxes payable | 60,785,995 | (5,757,999) | (20,639,000) | ||
| Net cash provided by operating activities | 2,394,639,760 | 2,220,370,257 | 1,919,246,153 | ||
| Cash flows from investing activities | |||||
| Acquisition of business, net of cash acquired | (53,197,208) | — | — | ||
| Purchase of property and equipment | (2,680,659,709) | (2,445,142,582) | (1,667,922,292) | ||
| Proceeds from sale of property and equipment | 17,932,159 | 12,190,632 | 8,745,216 | ||
| Premiums and investments made in Company-owned | |||||
| life insurance policies | (32,121,308) | (30,338,578) | (33,003,997) | ||
| Change in notes receivable | 3,165,687 | 1,844,732 | 9,272,642 | ||
| Contributions to investments | (22,882,980) | (61,026,963) | (51,498,138) | ||
| Proceeds from investments | 34,083,942 | 37,928,000 | 7,487,068 | ||
| Net cash used in investing activities | (2,733,679,417) | (2,484,544,759) | (1,726,919,501) | ||
| Cash flows from financing activities | |||||
| Principal payments on notes payable | (30,401,705) | (224,459,580) | (118,558,601) | ||
| Purchase of treasury stock | (161,960,502) | (169,036,902) | (94,717,332) | ||
| Principal payments on finance lease and financing | |||||
| obligations | (35,002,450) | (30,838,815) | (22,317,936) | ||
| Dividends paid | (37,612,394) | (9,494,705) | (120,586) | ||
| Proceeds from issuance of notes payable, net | 750,000,000 | — | — | ||
| Payment of notes payable issuance costs | (2,663,825) | — | — | ||
| Proceeds from sale-leaseback transactions | — | — | 1,901,352 | ||
| Net cash provided by (used in) financing | |||||
| activities | 482,359,124 | (433,830,002) | (233,813,103) | ||
| Effect of exchange rate changes on cash | |||||
| and cash equivalents | (1,525,124) | 1,124,602 | (1,092,260) | ||
| Net increase (decrease) in cash and cash | 141,794,343 | (696,879,902) | (42,578,711) | ||
| equivalents | |||||
| Cash and cash equivalents | |||||
| Beginning of year | 1,266,114,339 | 1,962,994,241 | 2,005,572,952 | ||
| End of year | $ 1,407,908,682 | $ 1,266,114,339 | $ 1,962,994,241 | ||
| Supplemental disclosures of cash flow | |||||
| information | |||||
| Cash paid during the year for: | |||||
| Income taxes | $ 245,789,200 | $ 276,929,750 | $ 290,608,812 | ||
| Interest | 145,668,712 | 125,184,639 | 107,627,016 | ||
| Supplemental disclosure of noncash transactions | |||||
| financing and investing activities | |||||
| Change in unpaid acquisitions of property and | |||||
| equipment | $ 25,471,348 | $ 59,503,447 | $ 49,086,852 | ||
| Change in unpaid hedge premiums | — | — | 1,485,360 | ||
| Dividends declared and not paid | 9,485,791 | 9,487,509 | 119,744 | ||
| Noncash contribution of assets | 4,443,174 | — | — | ||
The accompanying notes are an integral part of these consolidated financial statements.
1. Summary of Significant Accounting Policies
Nature of Business
Chick-fil-A, Inc. and subsidiaries (collectively referred to as "the Company", "we", and "our") provides consulting services and leases property, equipment, and leasehold improvements to franchisees of Chick-fil-A restaurants. The Company is primarily a franchisor, however during periods where a restaurant is without a franchisee, the Company operates the restaurant on a temporary basis as a company-operated location. Our franchised and company-operated restaurants are located in the United States, Canada, and Puerto Rico. The Company is actively exploring opportunities to continue franchised restaurant growth in these areas as well as expansion into other international locations in the future.
At December 31, 2024, 2023, and 2022, there were 2,730, 2,576, and 2,429 franchised and company-operated Chick
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the company itself had 2,429 franchised and company-operated restaurants in 2022. These restaurants generated approximately $18,814,024,000 in system-wide sales. Additionally, Chick Fil A had 395 licensed outlets operating as of December 31, 2022, and operated 3 distribution centers.
However, the FDD does not provide a specific figure for the total lease costs incurred by Chick Fil A in 2022. Instead, it details how lease payments are structured for franchisees. For sites owned by Chick Fil A, franchisees typically pay percentage rent based on gross receipts, with no base rent charge. For ground leases, the monthly base rent is determined by dividing the total annual rent under the ground lease by twelve. Franchisees are also responsible for additional charges and expenses, such as taxes and common area maintenance (CAM) fees.
Because the FDD does not disclose the total lease expenses for Chick Fil A in 2022, a prospective franchisee should consider asking the franchisor directly about the company's overall real estate costs and strategies. This information could provide valuable context for understanding the financial health and stability of the franchise system.