What was the total amount of Benihana's owned restaurant cost of sales in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
interested parties to evaluate companies in our industry. We use Adjusted EBITDA and Restaurant Operating Profit, alongside other GAAP measures such as net income, to measure profitability, 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 30 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, | ||||
|---|---|---|---|---|
| 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 | 30,751 | 29,081 | ||
| 31, | ||||
| 2023 and 2022, respectively) | ||||
| Depreciation and amortization | 15,664 | 12,134 | ||
| Pre-opening expenses | 8,855 | 5,519 | ||
| Transaction costs | 207 | 123 | ||
| Lease termination |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total cost of sales for Benihana's owned restaurants in 2022 was $75,365. This figure represents the direct expenses associated with the food and beverages sold at company-owned Benihana restaurants during that year.
For a prospective franchisee, understanding the cost of sales is crucial because it directly impacts the restaurant's profitability. A higher cost of sales can reduce the profit margin, while a lower cost of sales can increase it. Monitoring and managing these costs effectively is essential for the financial success of a Benihana franchise.
It's important to note that this figure only reflects the cost of sales for company-owned restaurants and may not be directly applicable to franchised locations. Factors such as purchasing power, operational efficiencies, and local market conditions can influence the cost of sales for individual franchise units. Therefore, prospective franchisees should conduct their own due diligence and consult with existing franchisees to gain a more accurate understanding of the potential cost of sales for their specific location.