What was the net cash used in investing activities for Hardees in Fiscal Year 2023?
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 net cash provided by investing activities for the fiscal year 2023 was $2,172. This figure represents the total cash inflow from activities related to investments made by the company during that year.
Investing activities typically include the purchase and sale of long-term assets such as property, plant, and equipment (PP&E), as well as investments in securities. In Hardees's case, these activities included proceeds from the sale of other property and equipment amounting to $1,957 and other investing activities totaling $215. The sum of these inflows resulted in the reported net cash provided by investing activities.
For a prospective franchisee, understanding these figures provides insight into how Hardees manages its assets and investments. A positive net cash flow from investing activities, as seen in 2023, can indicate that the company is generating cash from its investments, which can be a sign of financial health. However, it is important to consider these figures in the context of the company's overall financial performance and strategy. Franchisees may want to inquire about the specific nature of these investing activities to better understand their implications for the brand's long-term growth and stability.