What was the total amount of Benihana's general and administrative expenses (including stock-based compensation) for the year ended December 31, 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
lity, as a key profitability target in our budgets, and to compare our performance against that of peer companies despite possible differences in calculation.
Please refer to the table on page 28 for our reconciliation of net income to EBITDA and Adjusted EBITDA and for a reconciliation of operating income to Restaurant Operating Profit.
Results of Operations
The following table sets forth certain statements of operations data for the periods indicated (in thousands):
| 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 | 29,081 | 25,573 | ||
| 31, | ||||
| 2022 and 2021, respectively) | ||||
| 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 tr |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, for the year ended December 31, 2022, the general and administrative expenses totaled $29,081, which includes $3,985 in stock-based compensation.
This figure represents the costs associated with managing the overall business operations of Benihana, encompassing salaries, benefits, and other overhead expenses for corporate staff. The inclusion of stock-based compensation indicates that a portion of employee remuneration is provided through company stock, aligning employee interests with the company's performance.
Prospective franchisees should consider these general and administrative costs as part of the broader financial picture of Benihana. While franchisees may not directly bear these costs, understanding the franchisor's overhead can provide insights into the financial stability and management efficiency of the company. High or fluctuating administrative costs could signal potential areas of concern, while stable and well-managed expenses may indicate a healthy and sustainable business model.
It's important for potential franchisees to compare these figures with those of other similar franchise systems to benchmark Benihana's operational efficiency. Further due diligence, including discussions with existing franchisees and a thorough review of the FDD, is recommended to fully assess the financial health and stability of the Benihana franchise opportunity.