What was the total value of Hardees' land holdings, net of depreciation, 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 company's property and equipment, net of depreciation, totaled $377,436 as of January 31, 2024. This figure represents the book value of Hardees's tangible assets after accounting for accumulated depreciation. It is important to note that this value does not specifically isolate land holdings but includes all property and equipment.
For a prospective franchisee, this number provides insight into the scale of Hardees's investment in its physical assets. However, since the figure includes all property and equipment, it does not reveal the value of land holdings alone. Understanding the composition of this asset base is crucial for assessing the company's financial health and capital intensity.
Franchisees should be aware that depreciation expenses can impact profitability, and the net value of property and equipment reflects these deductions. Further inquiry into the specific types of property and equipment Hardees owns, as well as the depreciation methods used, would provide a more detailed understanding of this asset category. This information can be useful for comparing Hardees to other franchise systems and assessing the long-term sustainability of its asset base.
It is also important to note that this value is based on Hardees's accounting practices and may not reflect the current market value of the assets. A potential franchisee may want to consider independent appraisals or market analyses to gain a more comprehensive understanding of the true value of Hardees's property and equipment.