What was the net income attributable to The ONE Group Hospitality, Inc. for Benihana in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| For the year ended December 31, | ||
|---|---|---|
| 2022 | 2021 | |
| Revenues: | ||
| Owned restaurant net revenue | 95.0% | 95.4% |
| Management, license and incentive fee revenue | 5.0% | 4.6% |
| Total revenues | 100.0% | 100.0% |
| Cost and expenses: | ||
| Owned operating expenses: | ||
| Owned restaurant cost of sales (1) | 25.0% | 25.5% |
| Owned restaurant operating expenses (1) | 58.1% | 54.7% |
| Total owned operating expenses (1) | 83.1% | 80.2% |
| General and administrative (including stock-based compensation of | ||
| 1.3% and 1.3% for the years ended December | ||
| 31, | ||
| 2022 and 2021, | ||
| respectively) | 9.2% | 9.2% |
| Depreciation and amortization | 3.8% | 3.9% |
| COVID-19 related expenses | 0.8% | 2.1% |
| Transaction costs | 0.0% | 0.1% |
| Lease termination expenses | 0.1% | 0.7% |
| Agreement restructuring expenses | —% | 0.2% |
| Pre-opening expenses | 1.7% | 0.4% |
| Write-off of trademark costs and other | 0.2% | —% |
| Total costs and expenses | 94.9% | 93.0% |
| Operating income | 5.1% | 7.0% |
| Other expenses (income), net: | ||
| Interest expense, net of interest income | 0.7% | 1.4% |
| Loss on early debt extinguishment | —% | 0.2% |
| Gain on CARES Act Loan Forgiveness | —% | (6.7)% |
| Total other expenses (income), net | 0.7% | (5.1)% |
| Income before provision for income taxes | 4.5% | 12.1% |
| Provision for income taxes | 0.3% | 0.6% |
| Net income | 4.2% | 11.5% |
| Less: net (loss) income attributable to noncontrolling interest | (0.1)% | 0.2% |
| Net income attributable to The ONE Group Hospitality, | 4.3% | 11.3% |
| Inc. |
(1) These expenses are being sho
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the net income attributable to The ONE Group Hospitality, Inc. for the year ended December 31, 2022, was $13,534. This figure represents the portion of Benihana's net income that is allocated to the parent company, The ONE Group Hospitality, Inc., after accounting for any noncontrolling interests. This metric is a key indicator of the financial performance and profitability of Benihana from the perspective of its parent company.
For a prospective Benihana franchisee, this information provides insight into the overall financial health and stability of the Benihana brand under The ONE Group Hospitality, Inc.'s ownership. A higher net income attributable to the parent company generally suggests a stronger financial position and potentially more resources available for brand development, marketing, and franchisee support. Conversely, a lower or negative net income could raise concerns about the financial stability of the brand and its ability to support franchisees.
It's important to note that this figure is just one aspect of Benihana's overall financial performance. A prospective franchisee should also consider other financial metrics, such as revenue growth, operating expenses, and cash flow, to gain a comprehensive understanding of the brand's financial health. Additionally, it's advisable to compare these figures to those of other similar franchise brands in the restaurant industry to benchmark Benihana's performance and identify any potential areas of concern.