What were the total operating costs and expenses for Churchs Chicken as of December 31, 2022?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 553,590 | $ | 549,301 | | | | See accommunity nates | | | | | | |
| Dec | cember 31, | De | cember 25, | |
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues | ||||
| Sales by company-operated restaurants | S | 156,268 | S | 141,936 |
| Franchise revenue | 58,655 | 54,276 | ||
| Rental and other income | 8,380 | 8,781 | ||
| Total revenues | 223,303 | 204,993 | ||
| Operating costs and expenses | ||||
| Company-operated restaurant expenses: | ||||
| Food, beverage and packaging | 48,155 | 45,690 | ||
| Payroll and benefits | 42,744 | 40,009 | ||
| Other operating expenses | 37,842 | 37,204 | ||
| General and administrative expenses | 21,716 | 22,378 | ||
| Depreciation and amortization | 19,924 | 18,600 | ||
| Impairment, special charges and (gain) loss on asset dispositions | 2,554 | (954) | ||
| Total operating costs and expenses | 172,935 | 162,927 | ||
| Operating income | 50,368 | 42,066 | ||
| Interest expense, net | 28,140 | 26,861 | ||
| Income before income taxes | 22,22 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the total operating costs and expenses as of December 25, 2022, were $162,927. This figure represents the sum of various expenses related to company-operated restaurants, including food, beverage, and packaging, payroll and benefits, other operating expenses, general and administrative expenses, depreciation and amortization, and impairment, special charges and (gain) loss on asset dispositions.
Specifically, the breakdown of these expenses includes $45,690 for food, beverage, and packaging, $40,009 for payroll and benefits, $37,204 for other operating expenses, $22,378 for general and administrative expenses, $18,600 for depreciation and amortization, and a reduction of $954 related to impairment, special charges and (gain) loss on asset dispositions. These costs are crucial for understanding the financial performance of Churchs Chicken's company-operated restaurants and provide a benchmark for potential franchisees to evaluate their own expected operating expenses.
Prospective franchisees should carefully consider these operating costs when evaluating the potential profitability of a Churchs Chicken franchise. Understanding these expenses can help franchisees plan their budget, manage their finances effectively, and make informed decisions about pricing and cost control strategies. Comparing these figures with industry averages and the franchisee's own projections is essential for assessing the financial viability of the franchise.