What was the reported cost for food and packaging for Hardees company-operated restaurants?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
| Payroll and other employee benefits — 34,371 — — 88,269 — — — | 122,640 | | Occupancy and other 36,600 — — 86,253 — — (18,237) | 104,616 | | Total company-operated restaurants — 99,616 — — 243,756 — — (18,237) | 325,135 | | Franchised restaurants and other 68,884 | 93,626 | | Advertising — 6,889 — — 13,837 — — — | 20,726 | | General and administrative — (2,038) 24,442 — 213 25,336 — — | 47,953 | | Facility action charges, net | 2,183 | | Total operating costs and expenses | 489,623 | | Operating income (loss) — 87,366 (12,742) — — — | 171,932 | | Interest expense ——————————————————————————————————— | (61,863) | | Other income (loss), net | 4,790 | | Income (loss) before income taxes 118,236 66,269 61,153 82,120 41,798 36,915 (291,632) | 114,859 | | Income tax expense | 5,914 | | Net income (loss) $ 113,783 $ 66,269 $ 61,153 $ 80,659 $ 41,798 $ 36,915 $ (291,632) $ | 108,945 |
THE CKE SECURITIZATION ENTITIES COMBINING CONSOLIDATING STATEMENT OF OPERATIONS (In thousands)
| Fiscal | 2023 |
|---|---|
| Carl's Jr. Restaurants LLC | Carl's Jr. Funding LLC | Carl's Jr. SPV Guarantor LLC | Hardee's Restaurants LLC | Hardee's Funding LLC | Hardee's SPV Guarantor LLC | Eliminations | The CKE Securitization Entities |
|---|
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the cost of food and packaging for company-operated restaurants was $70,215. This figure represents the direct expenses Hardees incurred to supply its company-owned locations with the necessary food and packaging materials.
For a prospective franchisee, understanding this cost is crucial as it provides insight into a major component of the operating expenses for a Hardees restaurant. While franchisees will purchase their own food and packaging, this figure can serve as a benchmark for comparison and help in projecting their own costs. Factors such as location, supplier agreements, and waste management practices can influence these costs for individual franchise locations.
It's important to note that this figure is specific to company-operated restaurants and may not directly translate to franchised locations due to differences in purchasing power, distribution channels, and local market conditions. Franchisees should conduct thorough due diligence and consult with existing Hardees operators to gain a more accurate understanding of the potential food and packaging costs for their specific location.