What was the total income tax expense for Hardees in fiscal year 2024?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
of consulting fees, which are included in general and administrative expense in our accompanying Consolidated Statements of Operations for fiscal 2024 and 2023, respectively.
The management advisory and consulting services agreement also provides that Roark may earn future fees in connection with certain business acquisition transactions, an initial public offering or a change of control transaction. The management advisory and consulting services agreement includes customary exculpation and indemnification provisions in favor of Roark and its affiliates.
NOTE 20 — INCOME TAXES
Income tax expense consisted of the following:
| Fiscal 2024 | Fiscal 2023 | |
|---|---|---|
| Current: | ||
| Federal | $ 11,248 | $ 3,424 |
| State | 3,066 | 858 |
| Foreign | 5,926 | 4,866 |
| 20,240 | 9,148 | |
| Deferred: | ||
| Federal | (4,512) | (1,016) |
| State | 714 | 765 |
| Foreign | 60 | (32) |
| (3,738) | (283) | |
| Total income tax expense | $ 16,502 | $ 8,865 |
The following is a reconciliation of income tax expense at the federal statutory rate of 21.0% to our income tax expense for fiscal 2024 and 2023, respectively:
| Fisca | 1 2024 | F | Fiscal 2023 | |
|---|---|---|---|---|
| Income tax expense at statutory rate | $ | 12,942 | $ | 7,691 |
| State income taxes, net of federal income tax effect | 2,986 | 1,281 | ||
| Nondeductible share-based compensation | 446 | 163 | ||
| General business credits |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total income tax expense for fiscal year 2024 was $16,502. This figure is detailed in the Consolidated Statements of Operations, providing a clear view of Hardees's financial performance. In comparison, the income tax expense for the previous fiscal year, 2023, was $8,865.
Breaking down the total income tax expense for fiscal year 2024, the current portion includes $11,248 for federal taxes, $3,066 for state taxes, and $5,926 for foreign taxes, totaling $20,240. The deferred portion consists of $(4,512) for federal taxes, $714 for state taxes, and $60 for foreign taxes, totaling $(3,738). This detailed breakdown offers insight into the various tax obligations Hardees faces across different jurisdictions.
The reconciliation of income tax expense also provides additional context. The income tax expense at the statutory rate was $12,942. Other factors contributing to the total include state income taxes net of federal income tax effect ($2,986), nondeductible share-based compensation ($446), nondeductible foreign losses ($230), uncertain tax positions ($591), and other net adjustments ($1,950). These figures help explain the differences between the statutory rate and the actual income tax expense, offering a comprehensive view of Hardees's tax obligations.
Prospective franchisees should understand these figures as they reflect the overall profitability and tax management strategies of Hardees. While franchisees do not directly pay these corporate income taxes, the financial health of the parent company is crucial for brand stability and support. Reviewing these financial statements can help potential franchisees assess the financial strength and stability of Hardees.