What net gain did CKE Restaurants recognize from the sale of a Hardees restaurant during fiscal 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
ary 31, 2025, CKE Restaurants acquired one Carl's Jr. restaurant from a franchisee. During the year ended January 31, 2024, CKE Restaurants acquired nineteen Hardee's restaurants and one Carl's Jr. restaurant from franchisees. CKE Restaurants contributed these restaurants to the CKE Securitization Entities (the "CKE Restaurants Acquisition"). In connection with the acquisition of these restaurants, the CKE Securitization Entities recorded the following:
| Net working capital | $ | 5 | $ | 55 | |---------------------------
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, during fiscal year 2024, CKE Restaurants sold one Hardees restaurant. The net gain recognized from this sale was $817. This figure is included within facility action charges, net, in the Combined Consolidated Statements of Income.
The sale involved the transfer of the restaurant itself along with related inventory and fixed assets, which had a net book value of $1,265. In exchange for these assets, CKE Restaurants received aggregate consideration of $2,082. As part of the refranchising transaction, the franchisee also acquired the real property and equipment associated with the restaurant location.
For a prospective Hardees franchisee, this information provides insight into the financial activities of the parent company, CKE Restaurants, and how it manages its assets and franchise relationships. The refranchising transaction indicates a strategy of shifting ownership of certain locations to franchisees, which could create opportunities for growth and expansion within the Hardees system.