What were the retained earnings for Antioch Pizza Shop as of December 31, 2023?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
48 | 344,518 | | 131,403 | | Net income | $ | 218,330 | $ 35,383 | $ | 259,523 |
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
For the years ended December 31, 2024, 2023, and 2022
| Common Stock | Additional Paid-in | Retained | ||||||
|---|---|---|---|---|---|---|---|---|
| Shares | Amount | Capital | Earnings | Total | ||||
| Balances at January 1, 2021 | 1,000 | $ | 10 | $ | 6,810 | $ | 263,858 | $ 270,678 |
| Stockholder dividends | - | - | - | (430,179) | (430,179) | |||
| Net income | - | - | - | 259,523 | 259,523 | |||
| Balances at December 31, 2021 | 1,000 | 10 | 6,810 | 93,202 | 100,022 | |||
| Stockholder dividends | - | - | - | (85,889) | (85,889) | |||
| Net income | - | - | - | 35,383 | 35,383 | |||
| Balances at December 31, 2022 | 1,000 | 10 | 6,810 | 42,696 | 49,516 | |||
| Stockholder dividen |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the company's retained earnings as of December 31, 2023, were $245,516. This figure represents the accumulated net income of Antioch Pizza Shop that has been retained within the business rather than being distributed as dividends to stockholders. Retained earnings are a key indicator of a company's financial health and its ability to reinvest in future growth.
For a prospective Antioch Pizza Shop franchisee, understanding the franchisor's retained earnings can provide insight into the financial stability and profitability of the overall franchise system. A healthy level of retained earnings suggests that the franchisor is generating profits and managing its finances effectively. This can be reassuring for franchisees who are considering investing in the brand.
However, it's important to consider retained earnings in conjunction with other financial metrics and qualitative factors. While a positive retained earnings balance is generally a good sign, it's essential to assess the trend over time and compare it to industry benchmarks. Additionally, franchisees should evaluate the franchisor's plans for utilizing retained earnings, such as investing in new technologies, expanding marketing efforts, or providing additional support to franchisees. A comprehensive understanding of the franchisor's financial position and strategic direction is crucial for making an informed investment decision.