What was the amount of stock-based compensation included in general and administrative expenses for Benihana in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
or 66.0%, to $144.5 million for 2021 from $87.0 million for 2020. Owned restaurant operating costs as a percentage of owned restaurant net revenue decreased 900 basis points from 63.7% in 2020 to 54.7% for 2021 due to leverage on higher average weekly sales and actively managing operating costs.
General and administrative. General and administrative costs increased $11.7 million, or 83.7% to $25.6 million for 2021 from $13.9 million for 2020. The increase was attributable to increased activity as restaurants resumed in-person dining compared to the prior year when significant cost savings measures were implemented as a result of COVID-19. Stock-based compensation increased $1.8 million to $3.6 million for 2021 compared to $1.8 million for 2020.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, stock-based compensation included in general and administrative expenses was $3.6 million in 2021. This is an increase of $1.8 million from $1.8 million in 2020. The increase was attributed to certain grants that vested based on stock price thresholds and employer payroll taxes on stock option exercises and restricted stock vesting.
General and administrative costs for Benihana increased by $11.7 million, or 83.7%, from $13.9 million in 2020 to $25.6 million in 2021. As a percentage of revenues, general and administrative costs were 9.2% in 2021, compared to 9.8% in 2020.
For a prospective Benihana franchisee, understanding these figures provides insight into the company's overall financial management and how stock-based compensation impacts the general and administrative expenses. It also shows how these expenses fluctuate with the resumption of in-person dining after COVID-19 related savings measures. This information can be useful in evaluating the financial health and stability of the franchise.