What was the amount of cash used by Hardees in investing activities during fiscal year 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
23 | 481,766 | | Operating income | 171,932 | 163,318 | | Interest expense | (61,863) | (62,752) | | Other income, net | 4,790 | 2,057 | | Income before income taxes | 114,859 | 102,623 | | Income tax expense | 5,914 | 4,826 | | Net income | $ 108,945 | $ 97,797 |
THE CKE SECURITIZATION ENTITIES COMBINED CONSOLIDATED STATEMENTS OF MEMBERS' DEFICIT (In thousands)
| Balance as of January 31, 2022 | $ (251,817) |
|---|---|
| Capital contributions | 45,394 |
| Distributions to members | (139,428) |
| Net income | 97,797 |
| Cumulative effect of change in accounting principle (Note 9) | (452) |
| Balance as of January 31, 2023 | (248,506) |
| Capital contributions | 35,679 |
| Distributions to members | (133,746) |
| Net income | 108,945 |
| Balance as of January 31, 2024 | $ (237,628) |
THE CKE SECURITIZATION ENTITIES COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | . $ 108,945 | $ 97,797 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | . 46,692 | 44,580 |
| Amortization of deferred financing costs | . 3,419 | 3,352 |
| Gain on early termination of lease agreement associated with a financing method sale-leaseback restaurant property | . — | (1,285) |
| Gain on refranchising transaction | . (817) | _ |
| (Gain) loss on disposal of other property and equipment | . (602) | 512 |
| Provision for losses on impairments, accounts receivable and other items, net | 4,806 | 318 |
| Net changes in operating assets and liabilities: | ||
| Receivables, inventories, prepaid expenses and other current and non-current assets | . (1,985) | 4,247 |
| Accounts payable and other current and long-term liabilities | . (3,089) | (13,013) |
| Operating lease assets and liabilities, net | . 1,096 | 511 |
| Net cash provided by operating activities | . 158,465 | 137,019 |
| Cash flows from investing activities: | ||
| Proceeds from refranchising transactions | . 2,092 | _ |
| Proceeds from sale of other |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the company's cash flows from investing activities show positive cash flow, not cash used. For fiscal year 2024, Hardees had net cash provided by investing activities of $4,658.
This positive cash flow primarily came from proceeds from refranchising transactions amounting to $2,092 and proceeds from the sale of other property and equipment totaling $2,412. An additional $154 came from other investing activities.
For a prospective franchisee, this indicates Hardees was generating cash from its investing activities during this period, mainly through refranchising and asset sales. It is important to note that this figure represents the net cash flow; it does not detail specific investments made by Hardees during the year, which would require further investigation into their financial statements.