What was the amount of stock-based compensation included in general and administrative expenses for Benihana in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| | | |
| Interest expense, net of interest income | 2.1% | 0.7% | | | Total other expenses, net | 2.1% | 0.7% | | | Income before provision for income taxes | 0.7% | 4.5% | | | (Benefit) provision for income taxes | (0.5)% | 0.3% | | | Net income | 1.2% | 4.2% | | | Less: net loss attributable to noncontrolling interest | (0.2)% | (0.1)% | | | Net income attributable to The ONE Group Hospitality, | 1.4% | 4.3% | | | Inc. | | | |
(1) These expenses are being shown as a percentage of owned restaurant net revenue.
The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for the periods indicated (in thousands):
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Net income attributable to The ONE Group Hospitality, | $ | 4,718 | $ | 13,534 |
| Inc. | ||||
| Net loss attributable to noncontrolling interest | (692) | (215) | ||
| Net income | 4,026 | 13,319 | ||
| Interest expense, net of interest income | 7,028 |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, stock-based compensation of $3.985 million was included in general and administrative expenses in 2022. This figure is part of a broader overview of financial data provided for the years 2023 and 2022.
Stock-based compensation represents the cost allocated to compensating employees with company stock or stock options. For a prospective Benihana franchisee, this indicates the level of investment Benihana is making in its employees through equity-based incentives. This can be a positive sign, suggesting that the company is motivated to align employee interests with the overall financial performance of the franchise system.
It's important to note that while this figure is included within general and administrative expenses, it doesn't directly impact the day-to-day operational costs of a franchise location. However, understanding these corporate-level expenses can provide insight into the financial management and priorities of Benihana as a whole. Franchisees may want to inquire about how these compensation strategies contribute to the overall success and stability of the Benihana brand.