What was the reported net working capital for Hardees in Fiscal Year 2025?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
(270,258) | | Total property and equipment, net | | $ 371,065 | $ 377,436 | (1) The accumulated amortization related to finance leases was $
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the company's net working capital for fiscal year 2025 was reported as $5. This is a significant decrease compared to the $55 reported for fiscal year 2024.
Net working capital is a measure of a company's short-term liquidity, representing the difference between its current assets and current liabilities. A positive net working capital indicates that a company has enough liquid assets to cover its short-term liabilities.
The substantial decrease in Hardees's net working capital from 2024 to 2025 could indicate a tightening of short-term liquidity. Prospective franchisees should investigate the reasons for this change and its potential implications for the financial health of Hardees and its franchisees. It would be prudent to discuss this with the franchisor to understand the factors contributing to this decrease and how Hardees plans to manage its working capital in the future.