What was the total amount of owned restaurant cost of sales for Benihana 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, |
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Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total owned restaurant cost of sales for the year ended December 31, 2022, was $75,365. This figure represents the direct costs associated with operating Benihana's owned restaurants, such as food and beverage expenses.
For a prospective Benihana franchisee, understanding the cost of sales is crucial for assessing the profitability of the business. It provides insight into how efficiently the restaurants manage their resources and control expenses related to producing their menu offerings. Monitoring this figure closely can help franchisees identify areas for improvement and optimize their operational strategies.
It's also useful to compare the 2022 cost of sales to the previous year, 2021, which was $67,468. The increase in cost of sales from 2021 to 2022 could be due to various factors, such as inflation, changes in menu offerings, or increased customer demand. A potential franchisee should investigate these factors to understand the trends affecting the business and to make informed decisions about their investment.