What was the total amount of Benihana's depreciation and amortization expense for 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Depreciation and amortization. Depreciation and amortization expense increased $3.6 million to $15.7 million for 2023 from $12.1 million for 2022. The increase was primarily attributable to the opening of eight new owned venues since August 2022 and capital expenditures to maintain and enhance the guest experience in our restaurants.
Depreciation and amortization related to property and equipment amounted to $15.1 million and $11.7 million for the years ended December 31, 2023 and 2022, respectively. The Company depreciates construction in progress upon such assets being placed into service.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total depreciation and amortization expense for 2023 was $15.7 million. This is an increase of $3.6 million from $12.1 million in 2022.
This increase is primarily attributed to the opening of eight new owned venues since August 2022 and capital expenditures aimed at maintaining and enhancing the guest experience in Benihana restaurants. Additionally, the FDD specifies that depreciation and amortization related to property and equipment amounted to $15.1 million for the year ended December 31, 2023.
For a prospective franchisee, these figures highlight the ongoing investments Benihana makes in its restaurants, both through new openings and improvements to existing locations. It also shows how the depreciation and amortization expenses are calculated for property and equipment.