What was the reported operating income for Benihana for the year ended December 31, 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
and 1,094,572 shares at cost at December 31, 2023 and | | | | December 31, 2022, respectively | (15,051) | (7,169) | | Additional paid-in capital | 58,270 | 55,583 | | Retained earnings | 28,884 | 24,166 | | Accumulated other comprehensive loss | (2,930) | (2,869) | | Total stockholders' equity | 69,176 | 69,714 | | | (1,816) | (1,124) | | Noncontrolling interests | | | | Total equity | 67,360 | 68,590 | | Total liabilities and equity | $ 317,245 | $ 291,024 |
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, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 317,366 | $ | 300,859 |
| Management, license and incentive fee revenue | 15,403 | 15,779 | ||
| Total revenues | 332,769 | 316,638 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 75,727 | 75,365 | ||
| Owned restaurant operating expenses | 191,250 | 174,689 | ||
| Total owned operating expenses | 266,977 | 250,054 | ||
| General and administrative (including stock-based compensation of $5,032 and | ||||
| $3,985 for the years ended December 31, 2023 and 2022, respectively) | 30,751 | 29,081 | ||
| Depreciation and amortization | 15,664 | 12,134 | ||
| Pre-opening expenses | 8,855 | 5,519 | ||
| Transaction costs | 207 | 123 | ||
| Lease termination expenses | — | 257 | ||
| COVID-19 related expenses | — | 2,534 | ||
| Other expenses | 1,021 | 630 | ||
| Total costs and expenses | 323,475 | 300,332 | ||
| Operating income | 9,294 | 16,306 | ||
| Other expenses, net: | ||||
| Interest expense, net of interest income | 7,028 | 2,113 | ||
| Total other expenses, net | 7,028 | 2,113 | ||
| Income before provision for income taxes | 2,266 | 14,193 | ||
| (Benefit) provision for income taxes |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the reported operating income for the year ended December 31, 2023, was $9,294. This figure is part of a larger table presenting the company's financial performance, which also includes data from the previous year, 2022, for comparison. The table further breaks down revenues, costs, and expenses, providing a comprehensive view of Benihana's financial health.
In addition to the operating income, the table includes other relevant financial metrics such as total revenues ($332,769 for 2023), total costs and expenses ($323,475 for 2023), and net income ($4,026 for 2023). It also details specific expenses like owned restaurant cost of sales ($75,727) and owned restaurant operating expenses ($191,250). For a prospective franchisee, this level of detail can be useful in understanding the various factors that contribute to the overall profitability of Benihana restaurants.
Furthermore, the document provides a reconciliation of the operating income to restaurant operating profit. This reconciliation includes adjustments for items such as management, license and incentive fee revenue, general and administrative expenses, depreciation and amortization, pre-opening expenses, and other expenses. The restaurant operating profit for 2023 was reported as $50,389, which represents 15.9% of owned restaurant net revenue. This metric may be more indicative of the profitability of restaurant operations, excluding certain corporate-level expenses.