What was the net cash used in investing activities for Benihana in 2022, and what were the primary reasons for this usage?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Net cash provided by (used in): | ||||
| Operating activities | $ | 25,251 | $ | 30,966 |
| Investing activities | (32,629) | (11,467) | ||
| Financing activities | 39,102 | (20,275) | ||
| Effect of exchange rate changes on cash | (217) | 5 | ||
| Net increase (decrease) in cash and cash equivalents | $ | 31,507 | $ | (771) |
Operating Activities. Net cash provided by operating activities was $25.3 million for 2022 compared to $31.0 million for 2021. The decrease in net cash provid
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the net cash used in investing activities for 2022 was $32.7 million. This was primarily allocated to the construction of STK restaurants in Dallas, Texas, and San Francisco, California, as well as Kona Grill restaurants in Riverton, Utah, and Columbus, Ohio. Additionally, these funds covered capital expenditures for existing restaurants.
For a prospective Benihana franchisee, this indicates the scale of investment Benihana is willing to make in its restaurant locations. It demonstrates a commitment to expanding and upgrading both new and existing restaurants. Understanding these figures can help a franchisee contextualize their own potential capital expenditure requirements and the level of financial support the franchisor might provide or expect.
It's important to note that these figures reflect company-wide activities and may not directly correlate to the investment required for a single franchise unit. However, it provides insight into Benihana's overall financial strategy and priorities. Franchisees should inquire about specific investment expectations for their individual locations during their due diligence process.