What is the par value per share for Benihana's common stock?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| Year ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Net income attributable to The ONE Group Hospitality, | $ | 4,718 | $ | 13,534 |
| Inc. | ||||
| Basic weighted average shares outstanding | 31,556,437 | 32,400,515 | ||
| Dilutive effect of stock options, warrants and restricted share units | 731,427 | 1,471,282 | ||
| Diluted weighted average shares outstanding | 32,287,864 | 33,871,797 | ||
| Net income available to common stockholders per share | $ | 0.15 | $ | 0.42 |
| - Basic | ||||
| Net income |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company is authorized to issue up to 75.0 million shares of common stock. The par value for each share is $0.0001. This is based on the company's amended and restated certificate of incorporation.
The par value of a stock is a nominal value assigned to shares when they are first issued. It is the minimum price a share can be initially sold for. However, the market value of the stock can fluctuate significantly above this par value based on market conditions and the company's performance.
For a potential Benihana franchisee, the par value of the common stock is more relevant to the overall financial structure of the company rather than day-to-day operations. It provides insight into the equity structure of Benihana and how many shares are authorized versus outstanding. This information, in conjunction with other financial data, can help an investor assess the financial health and stability of the company.
As of December 31, 2023, Benihana had 31.3 million shares of common stock outstanding. Monitoring the number of outstanding shares, along with the par value, can provide a long-term perspective on the company's capitalization and potential dilution of equity.