What was the amount of stock-based compensation for Benihana in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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Board has the authority to amend, modify or terminate the Equity Incentive Plan, subject to any required approval by the Company's stockholders under applicable law or upon advice of counsel. No such action would affect any options previously granted under the Equity Incentive Plan without the consent of the holders.
F-21
Effective May 18, 2022, the Board and the Company's stockholders approved a 4,500,000 increase to the number of shares of common stock authorized for issuance under the Equity Incentive Plan, bringing the maximum aggregate limit to 11,5
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the stock-based compensation cost for 2023 was $5.0 million. This amount is included within the general and administrative expenses reported in the consolidated statements of operations and comprehensive income.
Within this $5.0 million, $0.5 million was allocated to unrestricted stock granted to the directors of Benihana. Additionally, $0.7 million was attributed to compensation costs associated with market condition-based restricted stock units (RSU).
Stock-based compensation is a common way for companies to incentivize employees and align their interests with the company's performance. For a prospective Benihana franchisee, this indicates that Benihana uses stock options and grants as part of its overall compensation strategy, which can help attract and retain talent at the corporate level.