What was the amount of interest costs capitalized by Hardees during fiscal year 2023?

According to Hardees's 2025 Franchise Disclosure Document, the company capitalized interest costs of $325 during the fiscal year 2023. For context, the document also states that Hardees capitalized interest costs of $180 during fiscal year 2024.

Capitalizing interest costs means that instead of expensing these costs immediately on the income statement, Hardees added them to the cost of an asset on its balance sheet. This practice is typically followed when the interest costs are directly related to the acquisition, construction, or production of a qualifying asset, such as a building or equipment. The capitalized interest is then expensed over the life of the asset through depreciation or amortization.

For a prospective Hardees franchisee, this information provides insight into Hardees's accounting practices and how it manages its finances. While the capitalization of interest costs itself may not directly impact the day-to-day operations of a franchise, it is an indicator of how Hardees invests in its assets and manages its debt. Understanding these financial practices can help a franchisee assess the overall financial health and stability of the Hardees brand.