What was the par value per share of Benihana common stock as of January 1, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| Net income (loss) available to common stockholders per share | $ 0.93 | $ | (0.44) | | | | - Diluted | | | | | |
For the years ended December 31, 2021 and 2020, stock options, warrants and restricted share units totaling 0.4 million and 1.4 million, respe
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company's amended and restated certificate of incorporation authorizes the issuance of up to 75.0 million shares of common stock. The par value for each share is $0.0001. This was the par value on January 1, 2022.
The par value of a stock is a nominal value assigned during the initial incorporation process and is usually quite low, as seen with Benihana. It has limited relevance to the actual market value of the shares. The market value is determined by investor demand and company performance.
For potential Benihana franchisees, understanding the par value of the company's stock is less critical than understanding the overall financial health and stock performance. While the par value remains constant, factors like stock repurchase programs and the issuance of dividends can influence shareholder value. Benihana's stock purchase program, authorized by the Board of Directors, and the absence of dividend issuance in recent years are more pertinent factors to consider.