What was the net income for Benihana in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
and 1,094,572 shares at cost at December 31, 2023 and | | | | December 31, 2022, respectively | (15,051) | (7,169) | | Additional paid-in capital | 58,270 | 55,583 | | Retained earnings | 28,884 | 24,166 | | Accumulated other comprehensive loss | (2,930) | (2,869) | | Total stockholders' equity | 69,176 | 69,714 | | | (1,816) | (1,124) | | Noncontrolling interests | | | | Total equity | 67,360 | 68,590 | | Total liabilities and equity | $ 317,245 | $ 291,024 |
See notes to the consolidated financial statements.
F-4
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in thousands, except earnings per share and related share information)
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 317,366 | $ | 300,859 |
| Management, license and incentive fee revenue | 15,403 | 15,779 | ||
| Total revenues | 332,769 | 316,638 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 75,727 | 75,365 | ||
| Owned restaurant operating expenses | 191,250 | 174,689 | ||
| Total owned operating expenses | 266,977 | 250,054 | ||
| General and administrative (including stock-based compensation of $5,032 and | ||||
| $3,985 for the years ended December 31, 2023 and 2022, respectively) | 30,751 | 29,081 | ||
| Depreciation and amortization | 15,664 | 12,134 | ||
| Pre-opening expenses | 8,855 | 5,519 | ||
| Transaction costs | 207 | 123 | ||
| Lease termination expenses | — | 257 | ||
| COVID-19 related expenses | — | 2,534 | ||
| Other expenses | 1,021 | 630 | ||
| Total costs and expenses | 323,475 | 300,332 | ||
| Operating income | 9,294 | 16,306 | ||
| Other expenses, net: | ||||
| Interest expense, net of interest income | 7,028 | 2,113 | ||
| Total other expenses, net | 7,028 | 2,113 | ||
| Income before provision for income taxes | 2,266 | 14,193 | ||
| (Benefit) provision for income taxes |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the net income for the year ended December 31, 2023, was $4,026. This figure represents the company's profit after deducting all costs and expenses, including operating expenses, general and administrative costs, depreciation, amortization, pre-opening expenses, transaction costs, other expenses, and interest expenses, as well as accounting for income taxes. This net income does not reflect deductions for net loss attributable to noncontrolling interest.
After accounting for the net loss attributable to noncontrolling interest, which was ($692) for 2023, the net income attributable to The ONE Group Hospitality, Inc. was $4,718. This represents the portion of Benihana's net income that is specifically attributable to its parent company. Additionally, the document reports a currency translation loss of ($61), resulting in a comprehensive income attributable to The One Group Hospitality, Inc. of $4,657 for 2023.
It's important to note that these figures are part of a broader financial statement that includes revenues, costs, and various expenses. Prospective franchisees should consider these figures in the context of the overall financial performance of Benihana, as detailed in the FDD, to understand the potential profitability and financial health of the franchise.