How much did Benihana spend on the purchase of property and equipment in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
f directors, the Company's public statements, operating plans, and industry data to identify any evidence that may contradict management's assumptions
- We tested the completeness and accuracy of the underlying source information used by management to identify quantitative indicators of impairment.
/s/ Deloitte & Touche LLP
Denver, Colorado March 9, 2023
We have served as the Company's auditor since 2021.
F-3
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share information)
| December 31, 2022 | December 31, 2021 | ||
|---|---|---|---|
| ASSETS | |||
| Current assets: |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the net value of property and equipment was $94,087 in thousands of dollars as of December 31, 2022, compared to $69,638 in thousands of dollars as of December 31, 2021. This indicates the company's investment in property and equipment increased by $24,449 thousand during 2022.
For a prospective franchisee, this information provides insight into Benihana's capital expenditures on fixed assets. While it doesn't detail the specific types of property and equipment acquired, it reflects the overall investment in this area. Understanding the company's approach to investing in its physical assets can be useful for franchisees as it can signal the brand's commitment to maintaining and upgrading its facilities.
However, it is important to note that this figure represents the net value, meaning it accounts for depreciation. The gross expenditure on new property and equipment could be higher. Franchisees should consider this information in conjunction with other financial metrics and information about Benihana's growth strategy to assess the potential for future investments in the system.