What historical results were compared to management's projections when evaluating the reasonableness of Benihana's undiscounted future cash flows analysis?

According to Benihana's 2024 Franchise Disclosure Document, when evaluating the reasonableness of management's undiscounted future cash flows analysis, the company's historical results were considered. The audit procedures related to impairment of long-lived assets included evaluating the reasonableness of management's analysis by comparing their projections to several factors.

Specifically, management's projections were compared to the company's historical results. Additionally, internal communications to management and the Board of Directors were taken into account. External communications made publicly by management were also considered in the evaluation. Finally, industry data was used as a benchmark for comparison.

This process is part of assessing whether the carrying value of Benihana's assets may be impaired, ensuring that the financial statements accurately reflect the value of the company's assets. For a potential franchisee, this indicates that Benihana's financial health is rigorously assessed, taking into account past performance, internal expectations, public statements, and broader industry trends.