What was the total value of Hardees' current liabilities as of January 31, 2024?
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 for Hardees as of January 31, 2024, were $195,409. This figure represents the sum of several short-term financial obligations, including the current portion of long-term debt ($13,700), the current portion of finance leases ($1,268), the current portion of operating leases ($85,529), accounts payable ($28,159), and other current liabilities ($66,753).
For a prospective Hardees franchisee, understanding the current liabilities is crucial as it provides insight into the brand's short-term financial health and obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect Hardees's ability to support its franchisees or invest in growth initiatives. Conversely, a manageable level of current liabilities suggests financial stability and efficient management of short-term obligations.
It's important to note that these figures are part of Hardees's consolidated balance sheets, which include the Hardee's National Advertising Fund and local cooperative advertising funds. While Hardees consolidates these funds, it states that it has no obligation with respect to the liabilities of these funds, and its assets do not serve as collateral for their creditors. Therefore, the franchisee should consider these liabilities in the context of the overall financial health of Hardees, while also recognizing the specific nature of these consolidated entities.
Prospective franchisees should review the complete financial statements and accompanying notes in the FDD to gain a comprehensive understanding of Hardees's financial condition. Consulting with a financial advisor is also recommended to assess the implications of these liabilities and other financial metrics for their investment decision.