What was the total revenue from franchised Hardees restaurants and other sources 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, |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the CKE Securitization Entities' Combining Consolidating Statement of Operations shows revenue from franchised restaurants and other sources. For Hardees Restaurants LLC, this revenue was reported as $122,587. Additionally, Hardees Funding LLC reported $11,835 in revenue from these sources. When combined with Carl's Jr. Restaurants LLC ($168,244) and Carl's Jr. Funding LLC ($5,579) and accounting for eliminations ($17,414), the total revenue from franchised restaurants and other sources for The CKE Securitization Entities is $290,831 for fiscal year 2023.
This figure is important for prospective Hardees franchisees as it provides insight into the revenue generated specifically from franchised operations within the CKE Securitization Entities. It excludes revenue from company-operated restaurants, focusing solely on the income derived from franchise agreements, royalties, and other related sources. Understanding this revenue stream can help potential franchisees assess the financial health and stability of the franchise system.
It's also important to note that the CKE Securitization Entities include both Hardees and Carl's Jr. brands. The financial performance of both brands is combined in this statement, so prospective Hardees franchisees should consider this when evaluating the data. The "eliminations" entry suggests some internal transactions or accounting adjustments between the entities, which are deducted to avoid double-counting revenue within the consolidated group. Therefore, franchisees should consider the overall financial performance of the CKE Securitization Entities, but focus on the Hardees-specific revenues and expenses to gain a clearer picture of the brand's individual performance.
Prospective franchisees should review the complete financial statements and accompanying notes in Exhibit K of the FDD to gain a comprehensive understanding of Hardees' financial performance. Consulting with a financial advisor is also recommended to properly interpret the data and assess the financial viability of investing in a Hardees franchise.