As of December 31, 2021, did Benihana have any outstanding shares of preferred stock?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
ssuance of a dividend is dependent on a variety of factors, including but not limited to, available cash and the overall financial condition of the Company. The issuance of a dividend is also subject to legal restrictions and the terms of the Company's credit agreement. The Company did not issue dividends related to its common stock in the years ended December 31, 2021 or 2020.
Preferred Stock
The Company is authorized by its amended and restated certificate of incorporation to issue 10.0 million shares of preferred stock, p
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company is authorized to issue 10.0 million shares of preferred stock with a par value of $0.0001 per share. The Benihana Board of Directors has the authority to designate the rights, powers, and preferences of the preferred stock, potentially giving them superior rights over common shareholders regarding liquidation, dividend preference, voting, and other rights. However, as of December 31, 2021, the Board had not yet designated these rights.
As of December 31, 2021, Benihana had no outstanding shares of preferred stock. This means that while the company has the option to issue preferred stock, it had not done so at that time.
For a prospective franchisee, this information provides insight into Benihana's capital structure and how it manages equity. The absence of preferred stock at that time might suggest a simpler capital structure. However, the authorization to issue preferred stock in the future means the company could potentially change its capital structure, which could impact common shareholders.