Where can I find additional details and certain financial information regarding Benihana's operating segments relating to the years ended December 31, 2021 and 2020?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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 RSUs. Refer to Note 10 for the calculations of basic and diluted earnings per share.
Segment Reporting
The Company has identified the following four reportable operating segments: STK, Kona Grill, ONE Hospitality and Corporate. Refer to Note 13 for additional details and certain financial information regarding the Company's operating segments relating to the years ended December 31, 2021 and 2020. Prior year amounts have been revised to conform to the current year segment presentation.
Foreign Currency Translation
Assets and liabilities of foreign operations are translated into U.S. dollars at the balance sheet date. Revenues and expenses are translated at average monthly exchange rates. Gains or losses resulting from the translation of foreign subsidiaries represent other comprehensive income (loss) and are accumulated as a separate component of stockholders' equity. Currency translation gains or losses are recorded in accumulated other comprehensive loss within stockholders' equity and amounted to a gain of approximately $1,000 and $5,000 during 2021 and 2020, respectively.
Comprehensive Income
Comprehensive income consists of two components: net income and other comprehensive income (loss). The Company's other comprehensive income (loss) is comprised of foreign currency translation adjustments. All of the Company's foreign currency translation adjustments relate to wholly-owned subsidiaries of the Company.
Recent Accounting Pronouncements
In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2021-10 ("ASU 2021-10") to increase the transparency of government assistance including the disclosure of the types of assistance, the entity's accounting for the assistance, and the effect of the assistance on an entity's financial statements. ASU 20
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, details regarding the company's operating segments for the years ending December 31, 2021, and 2020 can be found in Note 13. The four reportable operating segments are STK, Kona Grill, ONE Hospitality, and Corporate.
Specifically, certain financial information relating to these segments for the years ended December 31, 2021 and 2020 is provided. Prior year amounts for the STK and ONE Hospitality segments have been revised to conform to the current year segment presentation.
For example, the FDD includes a table showing revenues, costs, and expenses for the years ended December 31, 2021 and 2020. This table breaks down revenues into owned restaurant net revenue ($264,404 in 2021 and $136,618 in 2020) and management, license, and incentive fee revenue ($12,774 in 2021 and $5,325 in 2020). It also details various costs and expenses, including owned restaurant cost of sales, operating expenses, general and administrative costs, depreciation and amortization, COVID-19 related expenses ($5,821 in 2021 and $5,492 in 2020), and other financial items.
Prospective franchisees should carefully review Note 13 to understand the financial performance of each of Benihana's operating segments and how they contribute to the overall financial health of the company. Understanding these details is crucial for assessing the potential risks and rewards of investing in a Benihana franchise.