Does Benihana currently pay cash dividends on its common stock?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Our common stock is traded on the NASDAQ Capital Market under the symbol "STKS". As of February 29, 2024, there were 70 holders of record of our common stock.
Dividends
We have not declared or paid any cash dividends on our common stock and do not intend to declare or pay any cash dividend in the foreseeable future. The payment of dividends, if any, is within the discretion of our Board of Directors and will depend on our earnings, our capital requirements, compliance with debt covenants, overall financial condition and such other factors as the Board of Directors may consider. As a Delaware corporation, we are also limited by Delaware law as to the payment of dividends. We currently intend to retain our earnings to finance our growth.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, Benihana has not declared or paid any cash dividends on its common stock. Furthermore, Benihana does not intend to declare or pay any cash dividends in the foreseeable future. As of February 29, 2024, there were 70 holders of record of Benihana's common stock. Benihana's common stock is traded on the NASDAQ Capital Market under the symbol "STKS".
The decision to pay dividends, if any, lies within the discretion of Benihana's Board of Directors. This decision will be based on factors such as the company's earnings, capital requirements, compliance with debt covenants, and overall financial condition, as well as other factors the Board of Directors may consider. As a Delaware corporation, Benihana is also subject to Delaware law regarding dividend payments.
Benihana currently intends to retain its earnings to finance its growth. This indicates that the company is prioritizing reinvesting profits back into the business rather than distributing them to shareholders in the form of dividends. This is a common strategy for companies looking to expand and develop their operations.