What was the amount of proceeds from refranchising transactions for Hardees in fiscal year 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Loss | Total Equity | |||||
|---|---|---|---|---|---|---|
| Balance as of January 31, 2023 | 100 | $ | $ 734,314 | $ (540,277) | $ (1,135) | $192,902 |
| Share-based compensation | _ | 2,124 | _ | _ | 2,124 | |
| Other comprehensive loss | _ | _ | (22) | (22) | ||
| Net Income | 45,129 | 45,129 | ||||
| Balance as of January 31, 2024 | 100 | _ | 736,438 | (495,148) | (1,157) | 240,133 |
| Share-based compensation | _ | 444 | _ | _ | 444 | |
| Other comprehensive income | _ | _ | _ | 1,102 | 1,102 | |
| Other loss | 88 | _ | 88 | |||
| Cash dividends to CKE Holding Corporation | _ | _ | _ | (90,000) | _ | (90,000) |
| Net income | _ | _ | 20,791 | _ | 20,791 | |
| Balance as of January 31, 2025 | 100 | $ | $ 736,970 | $ (564,357) | $ (55) | $172,558 |
CKE RESTAURANTS HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
| Fiscal 2025 | Fiscal 2024 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | $ 20,791 | $ 45,129 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 52,776 | 51,372 |
| Amortization of deferred financing costs | 3,499 | 3,417 |
| Loss on early extinguishment of Series 2018-1 Class A-2-II Notes | 1,283 | _ |
| Share-based compensation | 444 | 2,124 |
| Gain on early termination of lease agreement associated with a financing method sale-leaseback restaurant property | (1,386) | _ |
| Gain on refranchising transaction | _ | (153) |
| Gain on disposal of other property and equipment. | (2,635) | (602) |
| Deferred income taxes | (11,869) | (3,738) |
| Provision for losses on impairments, accounts receivable and other items, net | 11,625 | 508 |
| Net changes in operating assets and liabilities: | ||
| Receivables, inventories, prepaid expenses and other current and non-current assets | (15,444) | (14,140) |
| Estimated liability for self-insurance | (1,009) | (1,253) |
| Accounts payable and other current and long-term liabilities | (2,264) | 7,604 |
| Operating lease asset and liabilities, net | (241) | 581 |
| Net cash provided by operating activities. | 90,849 | |
| Cash flows from investing activities: | ||
| Purchases of property and equipment | (36,620) | (35,514) |
| Acquisitions of restaurants, net of cash received | (3,019) | |
| Proceeds from refranchising transactions | _ | 2,092 |
| Proceeds from sale of other property and equipment | 8,128 | 2,346 |
| Other investing activities | 219 | (7,346) |
| Net cash used in investing activities | (28,384) | (41,441) |
| Cash flows from financing activities: | ||
| Net change in book overdraft | (298) | (1,472) |
| Repayments of Class A- |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the proceeds from refranchising transactions during fiscal year 2024 amounted to $2,092. This figure represents the cash inflow Hardees received from selling existing company-owned restaurants to franchisees.
For a potential Hardees franchisee, understanding the refranchising activity can provide insights into the brand's growth strategy and its relationship with existing franchisees. Refranchising allows Hardees to shift capital away from direct restaurant operations and focus on brand management and support services.
The proceeds from refranchising transactions can fluctuate yearly based on Hardees's strategic decisions regarding its mix of company-owned versus franchised locations. Monitoring these trends can help a prospective franchisee understand the financial health and strategic direction of the Hardees brand.