How did the military conflict in the Middle East, beginning in October 2023, impact Hardees' international franchised restaurants' same-store sales?

According to Hardees's 2025 Franchise Disclosure Document, the military conflict in the Middle East, which began in October 2023, had a negative impact on the brand's international franchised restaurants. Specifically, the FDD states that same-store sales in international markets were affected to varying degrees within the Middle East due to this conflict.

This disclosure indicates that prospective Hardees franchisees considering international locations, particularly in the Middle East, should be aware of the potential risks associated with ongoing regional instability. The conflict's impact on same-store sales suggests that consumer behavior and overall economic activity in the affected areas may be negatively influenced, which could lead to lower revenues for franchisees.

The FDD also cautions that the continuation of the military conflict could have further adverse effects on Hardees' business and results of operations. This forward-looking statement implies that the situation is uncertain and that franchisees should factor in the possibility of prolonged or increased disruptions when evaluating their investment. It is important to note that the document does not quantify the specific degree to which sales were impacted, only that the impact varied across different markets in the Middle East.

Therefore, potential franchisees should conduct thorough due diligence to assess the current and potential future impact of the conflict on specific markets of interest. This may involve consulting with existing franchisees in the region, analyzing economic and political forecasts, and carefully reviewing Hardees' contingency plans for managing such risks. Understanding the specific vulnerabilities and mitigation strategies will be crucial for making informed investment decisions.