What was the net income (loss) for Benihana in 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2021 2020 Revenues: Owned restaurant net revenue 95.4 % 96.2 % Management, license and incentive fee revenue 4.6 % 3.8 % Total revenues 100.0 % 100.0 % Cost and expenses: Owned operating expenses: Owned restaurant cost of sales (1) 25.5 % 24.9 % Owned restaurant operating expenses (1) 54.7 % 63.7 % Total owned operating expenses (1) 80.2 % 88.6 % General and administrative (including stock-based compensation of 1.3% and 1.2% for the years ended December 31, 2021 and 2020, respectively) 9.2 % 9.8 % Depreciation and amortization 3.9 % 7.1 % COVID-19 related expenses 2.1 % 3.9 % Transaction costs 0.1 % 0.8 % Lease termination expenses 0.7 % 2.3 % Agreement restructuring expenses 0.2 % 0.3 % Pre-opening expenses 0.4 % 0.1 % Other income, net —% —% Total costs and expenses 93.0 % 109.6 % Operating income (loss) 7.0 % (9.6)% Other (income) expenses, net: Interest expense, net of interest income 1.4 % 3.8 % Loss on early debt extinguishment 0.2 % —% Gain on CARES Act Loan Forgiveness (6.7)% —% Total other (income) expenses, net (5.1)% 3.8 % Income (loss) before provision (benefit) for income taxes 12.1 % (13.4)% Provision (benefit) for income taxes 0.6 % (3.8)% Net income (loss) 11.5 % (9.6)% Less: net income (loss) attributable to noncontrolling interest 0.2 % (0.6)% 11.3 % (9.0)% | For the year ended December 31, |
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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 Benihana in 2021 was 11.5%. This figure represents the percentage of total revenues remaining after all costs, expenses, and taxes have been accounted for. In 2020, Benihana experienced a net loss of (9.6)%.
This information is crucial for potential franchisees as it provides insight into the financial performance of Benihana. A positive net income suggests that the company is profitable and efficiently managing its operations. The significant turnaround from a loss in 2020 to a profit in 2021 could be attributed to various factors, such as improved cost management, increased revenues, or changes in the economic environment.
However, it is important to note that this percentage is based on the total revenues of Benihana's owned restaurants and other revenue streams like management, license, and incentive fees. Prospective franchisees should consider this information in conjunction with other financial data and market research to assess the potential profitability of a Benihana franchise. Understanding the factors that contributed to the net income and loss can help franchisees make informed decisions and develop effective business strategies.