What were the total food and packaging costs for company-operated Hardees restaurants as reported in the CKE Securitization Entities Combining Consolidating Statement of Operations for 2023?
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 | |
|---|---|---|---|---|---|---|---|---|
| Revenue: | ||||||||
| Company-operated restaurants | $ 111,433 | $ | $ | $ 242,820 | $ | s — | $ — | $ 354,253 |
| Franchised restaurants and other | 168,244 | 5,579 | 122,587 | 11,835 | (17,414) | 290,831 | ||
| Total revenue | 279,677 | 5,579 | 365,407 | 11,835 | (17,414) | 645,084 | ||
| Operating costs and expenses: | ||||||||
| Company-operated restaurants: | ||||||||
| Food and packaging | 28,226 | _ | _ | 70,215 | _ | _ | _ | 98,441 |
| Payroll and other employee benefits | 32,897 | _ | _ | 80,466 | _ | _ | _ | 113,363 |
| Occupancy and other | 35,240 | 82,317 | (17,414) | 100,143 | ||||
| Total com |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total food and packaging costs for company-operated Hardees restaurants in 2023 were $70,215 for Hardee's Restaurants LLC. When combined with Carl's Jr. Restaurants LLC, the total food and packaging costs were $98,441.
These figures are derived from the CKE Securitization Entities Combining Consolidating Statement of Operations. This statement consolidates the financial performance of Hardees and Carl's Jr. under the CKE Securitization Entities.
For a prospective Hardees franchisee, understanding these costs is crucial for projecting profitability. Food and packaging represent a significant portion of operating expenses, and fluctuations in these costs can directly impact the bottom line. Franchisees should analyze these historical costs in conjunction with current market trends and supplier agreements to develop realistic financial forecasts. It's also important to note that these figures represent company-operated restaurants and may not directly translate to franchised locations due to differences in purchasing power, operational efficiencies, or local market conditions.