What was the net income attributable to The ONE Group Hospitality, Inc., which includes Benihana, in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
ned restaurant net revenue was 19.8% in 2021 compared to 11.4% in 2020.
Operating income increased $33.1 million to $19.4 million for 2021 from a loss of $13.7 million for 2020. The increase in operating income was primarily driven by strong sales and better Restaurant Operating Profit.
Net income attributable to The ONE G
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. in 2021 was $31.3 million, compared to a loss of $12.8 million in 2020. This significant increase in net income is a key indicator of the financial recovery and growth experienced by The ONE Group Hospitality, Inc., which includes Benihana, during that period.
The FDD also notes that the company recognized an $18.5 million gain on CARES Act Loan Forgiveness in 2021, which contributed to the increase in net income. However, this was partly offset by a $0.6 million loss on early debt extinguishment related to the partial paydown of their credit facility. These factors provide additional context for understanding the company's financial performance during that year.
For a prospective Benihana franchisee, this information is useful for evaluating the overall financial health and stability of the parent company. A strong net income suggests that the company is well-managed and has the potential to support its franchisees. However, it's important to consider the specific factors that contributed to the net income, such as the CARES Act Loan Forgiveness, to get a more complete picture of the company's financial situation.