What was the depreciation and amortization expense for Hardees in fiscal year 2025?
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 total depreciation and amortization expense for fiscal year 2025 was $52,776. This figure is part of the adjustments to reconcile net income to net cash provided by operating activities. It also includes amortization of deferred financing costs which was $3,499 for fiscal year 2025.
Depreciation and amortization are accounting methods used to allocate the cost of tangible assets (like equipment and buildings) and intangible assets (like patents or trademarks) over their useful lives. For Hardees, this expense reflects the wearing out or consumption of its assets used in operations during the fiscal year. This is a non-cash expense, meaning it doesn't involve an actual outflow of cash, but it reduces the company's reported net income.
For a prospective Hardees franchisee, understanding depreciation and amortization is important for assessing the financial health and profitability of the franchisor. While franchisees don't directly pay this expense, it impacts the franchisor's overall financial performance, which can affect the support and resources available to franchisees. Additionally, the depreciation expense may reflect the level of investment Hardees is making in maintaining and upgrading its company-owned restaurants, which could indirectly benefit franchisees through improved brand image and operational efficiency.
It's worth noting that this figure represents the depreciation and amortization expense for CKE Restaurants as a whole, not just the Hardees brand. Franchisees should consider this within the broader context of CKE Restaurants' financial statements to gain a comprehensive understanding of the company's financial position.