What was the amount of Benihana's treasury stock on January 1, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 317,366 | $ | 300,859 |
| Management, license and incentive fee revenue | 15,403 | 15,779 | ||
| Total revenues | 332,769 | 316,638 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 75,727 | 75,365 | ||
| Owned restaurant operating expenses | 191,250 | 174,689 | ||
| Total owned operating expenses | 266,977 | 250,054 | ||
| General and administrative (including stock-based compensation of $5,032 and | ||||
| $3,985 for the years ended December 31, 2023 and 2022, respectively) | 30,751 | 29,081 | ||
| Depreciation and amortization | 15,664 | 12,134 | ||
| Pre-opening expenses | 8,855 | 5,519 | ||
| Transaction costs | 207 | 123 | ||
| Lease termination expenses | — | 257 | ||
| COVID-19 related expenses | — | 2,534 | ||
| Other expenses | 1,021 | 630 | ||
| Total costs and expenses | 323,475 | 300,332 | ||
| Operating income | 9,294 | 16,306 | ||
| Other expenses, net: | ||||
| Interest expense, net of interest income | 7,028 | 2,113 | ||
| Total other expenses, net | 7,028 | 2,113 | ||
| Income before provision for income taxes | 2,266 | 14,193 | ||
| (Benefit) provision for income taxes | (1,760) | 874 | ||
| Net income | 4,026 | 13,319 | ||
| Less: net loss attributable to noncontrolling interest | (692) | (215) | ||
| Net income attributable to The ONE Group Hospitality, Inc. | $ | 4,718 | $ | 13,534 |
| Currency translation loss | (61) | (224) | ||
| Comprehensive income attributable to The One Group Hospitality, Inc. | $ | 4,657 | $ | 13,310 |
| Net income attributable to The ONE Group Hospitality, Inc. per share: | ||||
| Basic net income per share | $ | 0.15 | $ | 0.42 |
| Diluted net income per share | $ | 0.15 | $ | 0.40 |
| Shares used in computing basic income per share | 31,556,437 | 32,400,515 | ||
| Shares used in computing diluted income per share | 32,287,864 | 33,871,797 | ||
**THE ONE GROUP HOSPITALITY, INC. CO
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the balance of treasury stock on January 1, 2022, was a deficit of $37.
This figure reflects the cumulative value of Benihana's shares that the company has repurchased from the open market or from its shareholders. Treasury stock is not an asset but rather a reduction in stockholders' equity. The negative value indicates that the cost of reacquired shares exceeds their par value, impacting the overall equity position of the company at that specific point in time.
For a prospective franchisee, this information provides insight into Benihana's capital structure and how it manages its shares. While treasury stock transactions are common, significant fluctuations could signal changes in the company's financial strategy or shareholder relations. It is advisable for potential franchisees to monitor these trends in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health.