What was the reported net income for Benihana at the balance on December 31, 2021?
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 net income attributable to The ONE Group Hospitality, Inc. for the year ended December 31, 2021, was $31,348. The overall net income for Benihana for that same period was $31,948. This figure represents the company's profitability after all expenses and taxes have been accounted for.
For a prospective franchisee, understanding the net income is crucial as it reflects the financial health and stability of Benihana. A higher net income generally indicates a more successful and well-managed franchise system. It's also important to note that while the net income attributable to The ONE Group Hospitality, Inc. was $31,348, the overall net income was slightly higher at $31,948, due to non-controlling interests.
Reviewing these figures in comparison to previous years and industry benchmarks can provide a clearer picture of Benihana's performance. Additionally, prospective franchisees should investigate the factors that contributed to this net income, such as revenue growth, cost management, and any extraordinary items that may have impacted the results. Understanding these details can help in assessing the potential risks and rewards of investing in a Benihana franchise.