What was the par value of Benihana shares at the balance on January 1, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 Hospitality, Inc. | $ | 13,534 | $ | 31,348 |
| Currency translation (loss) gain | (224) | 1 | ||
| Comprehensive income attributable to The One Group Hospitality, Inc. | $ | 13,310 | $ | 31,349 |
| Net income attributable to The ONE Group Hospitality, Inc. per share: | ||||
| Basic net income per share | $ | 0.42 | $ | 1.01 |
| Diluted net income per share | $ | 0.40 | $ | 0.93 |
| Shares used in computing basic income per share | 32,400,515 | 31,155,224 | ||
| Shares used in computing diluted income per share | 33,871,797 | 33,794,344 | ||
**THE ONE GROUP HOSPITALITY, INC. CONSOL
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the par value of Benihana shares at the balance on January 1, 2021, was $3. This information is derived from the provided table outlining the company's shares, par value, and other financial data. The table provides a snapshot of the company's financial position at the beginning of 2021, detailing the number of shares, their par value, and various components of stockholders' equity.
This par value is a nominal accounting value assigned to shares when they are initially issued. It is essential to note that the par value often has little relationship to the actual market value of the shares, which is determined by investor demand and company performance. In Benihana's case, the par value is a small amount, indicating that the company's stock has been issued at a price significantly above par, with the excess recorded as additional paid-in capital.
For a prospective franchisee, understanding the par value of shares might not have direct operational implications. However, it provides insight into the company's capital structure and how it manages its equity. Reviewing the changes in shares outstanding and the components of equity over time, as presented in the table, can offer a broader understanding of Benihana's financial management and stock-related activities.
It's also important to note that while the par value is a fixed amount, other elements of stockholders' equity, such as retained earnings and additional paid-in capital, can fluctuate based on the company's profitability and stock transactions. Therefore, a comprehensive analysis of the entire stockholders' equity section is crucial for a thorough understanding of Benihana's financial health.