What was the operating income for Benihana in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
166 | | 10,632 | | Accumulated other comprehensive loss | (2,869) | | (2,645) | | Total stockholders' equity | 69,714 | | 61,434 | | Noncontrolling interests | (1,124) | | (909) | | Total equity | 68,590 | | 60,525 | | Total liabilities and equity | $ 291,024 | $ | 229,835 | | | | | |
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, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 300,859 | $ | 264,404 |
| Management, license and incentive fee revenue | 15,779 | 12,774 | ||
| Total revenues | 316,638 | 277,178 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 75,365 | 67,468 | ||
| Owned restaurant operating expenses | 174,689 | 144,529 | ||
| Total owned operating expenses | 250,054 | 211,997 | ||
| General and administrative (including stock-based compensation of $3,985 and | ||||
| $3,618 for the years ended December 31, 2022 and 2021, respectively) | 29,081 | 25,573 | ||
| Depreciation and amortization | 12,134 | 10,790 | ||
| COVID-19 related expenses | 2,534 | 5,821 | ||
| Transaction costs | 123 | 160 | ||
| Lease termination expenses | 257 | 1,912 | ||
| Agreement restructuring expenses | — | 503 | ||
| Pre-opening expenses | 5,519 | 1,037 | ||
| Write-off of trademark costs and other | 630 | — | ||
| Total costs and expenses | 300,332 | 257,793 | ||
| Operating income | 16,306 | 19,385 | ||
| Other expenses (income), net: | ||||
| Interest expense, net of interest income | 2,113 | 3,780 | ||
| Loss on early debt extinguishment | — | 600 | ||
| Gain on CARES Act Loan Forgiveness | — | (18,529) | ||
| Total other expenses (income), net | 2,113 | (14,149) | ||
| Income before provision for income taxes | 14,193 | 33,534 | ||
| Provision for income taxes | 874 | 1,586 | ||
| Net income | 13,319 | 31,948 | ||
| Less: net (loss) income attributable to noncontrolling interest | (215) | 600 | ||
| Net income attributable to The ONE Group Hospitali |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the operating income for the year ended December 31, 2022, was $16,306. This is in contrast to the operating income of $19,385 for the year ended December 31, 2021. This represents a decrease in operating income from 2021 to 2022.
For a prospective Benihana franchisee, this information is useful in understanding the financial performance of Benihana. It provides insight into the brand's profitability and how it has changed over time. A decrease in operating income could signal challenges in the business, such as increased costs or decreased revenues, which a franchisee should investigate further.
Additionally, the FDD provides a breakdown of revenues and expenses. In 2022, Benihana's total revenues were $316,638, which included $300,859 from owned restaurant net revenue and $15,779 from management, license, and incentive fee revenue. Total costs and expenses amounted to $300,332. Reviewing these figures in detail can help a potential franchisee assess the overall financial health and efficiency of Benihana's operations.