• The fund posted returns of -0.06% ((Institutional shares)) and -0.12% ((Investor A shares, without sales charge)) for the first quarter of 2026.

• The fund’s underperformance of its benchmark was driven by weakness in the

A major Carl’s Jr. franchisee is planning to offload 59 locations across California after filing for bankruptcy protection earlier this year. 

Harshad Dharod intends to close 10 restaurants and sell 49 others operating under the Anaheim-born fast-food chain, according to the Los Angeles Times.

Dharod’s Friendly Franchisees Corporation, which touts itself as the largest California-based Carl’s Jr. franchisee, has acquired at least 65 locations since 2000, according to its website.

However, rising operating costs and California’s $20-per-hour fast-food minimum wage have reportedly strained the business, prompting the company to file for Chapter 11 bankruptcy protection in April, the Times reported. 

PIZZA HUT TO CLOSE AROUND 250 LOCATIONS

A customer is seen leaving a Carl’s Jr. fast food location on Aug. 16, 2023.  (Xavi Lopez/SOPA Images/LightRocket / Getty Images)

Dharod also blamed what he described as a lack of support and innovation from Carl’s Jr. for the restaurants’ financial struggles, according to the outlet. 

Bankruptcy filings reportedly show Dharod’s restaurants generated more than $6 million in monthly revenue while losing more than $600,000 per month in 2026. 

Understaffing, workplace injuries and violent encounters with customers also contributed to the restaurants’ challenges, employees told the outlet. 

RED LOBSTER TO CLOSE TIMES SQUARE RESTAURANT AFTER MORE THAN 20 YEARS

Carl’s Jr.’s logo seen on a Carl’s Jr. restaurant in the Mill Woods area of Edmonton, Alberta, Canada, on May 28, 2025. (Artur Widak/NurPhoto / Getty Images)

A spokesperson for Carl’s Jr. previously told Restaurant Business that the restructuring is specific to Dharod’s operations and will not affect other Carl’s Jr. locations. 

“We are aware that Carl’s Jr. franchisee Harshad Dharod entities and its affiliates, which together independently own and operate certain Carl’s Jr. restaurants in California, have entered into a court-supervised restructuring process under Chapter 11 of the United States bankruptcy code,” a company representative said in a statement. 

“This situation is specific to this individual’s financial and business circumstances.

Customers exit a Carl’s Jr. location in Madrid, Spain, on Oct. 24, 2023. (Xavi Lopez/SOPA Images/LightRocket / Getty Images)

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According to brokerage firm National Franchise Sales, there is already interest from prospective buyers, the Times reported.

If the locations are sold, operations could continue largely uninterrupted, as employees and managers often remain in place when franchise ownership changes hands. 

FOX Business reached out to Carl’s Jr., Harshad Dharod and the Friendly Franchisees Corporation for more information. 

Q1: 2026-06-09 Earnings Summary

EPS of -$0.11 beats by $0.09

 | Revenue of $238.92M (-8.53% Y/Y) misses by $29.05M

This article was written by

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Aimee McNamara
Group Executive of Human Capital

Good afternoon, everyone, and thank you for joining us for Araxi’s annual results presentation for FY 2026. I’m Aimee McNamara. On behalf of our Chairman, Michael Pimstein; our CEO, Brad Sacks; and our Chief Financial and Value Enhancement Officer, Sjoerd Douwenga, we thank you for joining us.

It has been a significant year for the group. As many of you will know, this is our first full year results presentation under the Araxi name following the group’s rebrand from Capital Appreciation in 2025. The year reflected a combination of disciplined execution, meaningful strategic progress and important change, including the recent conclusion of the Pay@ acquisition, which we believe adds exciting growth potential to the group going forward.

Before we start, I would like to remind everyone of the customary safe harbor statement, which will be included at the end of the presentation. Additionally, please remember to add your questions to the chat as we go through the presentation, and we’ll address once concluded. With that, I will hand you over to Brad Sacks, who will take you through the group’s FY 2026 performance, strategic progress and outlook. Brad will then be followed by Sjoerd Douwenga, who will provide more detailed overview of the group’s financial performance and key metrics for the year. With that, Brad, I hand over to you.

Bradley Sacks
CEO & Executive Director

Amy, thank you very much, and welcome to everybody, all of our shareholders and those who are following us. I would also particularly like to welcome members of the Pay@ team who joined us for the first