What was the total value of Hardees' current liabilities as of January 31, 2023?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the\neffectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
KPMG LLP
Nashville, Tennessee April 10, 2024
CKE RESTAURANTS HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and par values)
| Jan | uary 31, 2024 | Jan | uary 31, 2023 | |
|---|---|---|---|---|
| ASSETS | . ' | _ | ||
| Current assets: | ||||
| Cash and cash equivalents | . $ | 130,566 | $ | 107,853 |
| Cash and cash equivalents - restricted | 15,942 | 16,053 | ||
| Accounts receivable, net | 38,438 | 37,541 | ||
| Inventories | 3,029 | 2,999 | ||
| Prepaid expenses | 13,562 | 6,183 | ||
| Other current assets | 80 | 83 | ||
| Total current assets | 201,617 | " | 170,712 | |
| Property and equipment, net | 377,436 | 371,572 | ||
| Operating lease assets | 424,719 | 448,064 | ||
| Goodwill | 539,421 | 540,083 | ||
| Intangible assets, net | 777,538 | 793,030 | ||
| Other assets, net | 40,485 | 29,806 | ||
| Total assets | . $ | 2,361,216 | $ | 2,353,267 |
| LIABILITIES AND EQUITY | ||||
| Current liabilities: | ||||
| Current portion of long-term debt | . $ | 11,800 | $ | 13,700 |
| Current portion of |
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the total current liabilities as of January 31, 2023, were $195,409. This figure represents the sum of several short-term financial obligations that Hardees was responsible for at that time. These liabilities include items such as the current portion of long-term debt, finance leases, operating leases, accounts payable, and other current liabilities.
For a prospective Hardees franchisee, understanding the company's financial liabilities can provide insight into its financial stability and operational efficiency. A high level of current liabilities relative to current assets could indicate potential liquidity issues, meaning Hardees might face challenges in meeting its short-term obligations. However, it's also important to consider the context of these liabilities within the broader financial picture of the company.
Specifically, the components of current liabilities for January 31, 2023, included $13,700 for the current portion of long-term debt, $1,268 for the current portion of finance leases, $85,529 for the current portion of operating leases, $28,159 in accounts payable, and $66,753 in other current liabilities. These figures offer a detailed breakdown of the obligations Hardees had to address in the short term.
Franchisees should be aware that these liabilities reflect Hardees's overall financial health, which can indirectly affect their franchise operations. For instance, a financially stable Hardees is more likely to invest in brand development, marketing, and support services, all of which can benefit individual franchisees. Therefore, reviewing these financial statements is a crucial part of the due diligence process for potential franchisees.