What was the net income for Benihana for the year ended December 31, 2022?
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, 2022, was $13,319. This figure represents the company's profit after deducting all costs and expenses, including the provision for income taxes, from its total revenues.
For a prospective Benihana franchisee, understanding the net income is crucial as it provides insight into the overall profitability of the company. It demonstrates how effectively Benihana manages its operations and expenses to generate profit. A higher net income generally indicates a more financially stable and successful franchise system, which can be an attractive factor for potential investors.
It's also important to note that the net income attributable to The ONE Group Hospitality, Inc., which is Benihana's parent company, was $13,534 for the same period. This figure differs slightly from the overall net income due to the deduction of net loss attributable to noncontrolling interest. Reviewing these figures helps potential franchisees understand the financial health and performance of Benihana and its parent company.