For Benihana, what was the diluted earnings per share for the year ended December 31, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2024 | $ 289 |
|---|---|
| 2025 | 266 |
| 2026 | 266 |
| 2027 | 221 |
| Total lease payments | 1,042 |
| Less: imputed interest | (162) |
| Present value of finance lease liabilities | $ 880 |
Note 9 – Earnings per share
Basic earnings per share is computed using the weighted average number of common shares outstanding during the period and income available to common stockholders. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period plus the dilutive effect of all potential shares of common stock including common stock issuable pursuant to stock options, warrants, and restricted stock units.
For the years ended December 31, 2023 and 2022, earnings per share was calculated as follows (in thousands, except earnings per share and related share data):
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Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the diluted net income available to common stockholders per share for the year ended December 31, 2022, was $0.40. This figure represents the company's earnings per share after considering the dilutive effects of stock options, warrants, and restricted share units.
For a prospective Benihana franchisee, understanding diluted earnings per share can provide insight into the financial performance and capital structure of the company. A higher diluted earnings per share generally indicates stronger profitability and efficient use of capital, even when considering potential dilution from outstanding equity instruments. This metric is useful for assessing the overall financial health of Benihana.
It's important to note that the calculation of diluted earnings per share includes the impact of potential shares that could be issued in the future, which could increase the number of outstanding shares and potentially decrease earnings per share. In 2022, stock options, warrants, and restricted share units totaling 1.47 million were considered in the diluted weighted average shares outstanding calculation, bringing the total to 33,871,797 shares.