What was the total amount of owned restaurant net revenue for Benihana in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| December 31, 2023 | December 31, 2022 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 21,047 | $ 55,121 |
| Accounts receivable | 17,264 | 15,220 |
| Inventory | 6,184 | 5,728 |
| Other current assets | 1,809 | 2,091 |
| Due from related parties | 376 | 376 |
| Total current assets | 46,680 | 78,536 |
| Property and equipment, net | 139,908 | 94,087 |
| Operating lease right-of-use assets | 95,075 | 85,161 |
| Deferred tax assets, net | 14,757 | 12,323 |
| Intangibles, net | 15,306 | 15,290 |
| Other assets | 4,636 | 4,774 |
| Security deposits | 883 | 853 |
| Total assets | $ 317,245 | $ 291,024 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 19,089 | $ 13,055 |
| Accrued expenses | 28,333 | 22,409 |
| Deferred gift card revenue and other | 2,077 | 2,115 |
| Current portion of operating lease liabilities | 6,897 | 6,336 |
| Current portion of long-term debt | 1,500 | 1,500 |
| 266 | 256 | |
| Other current liabilities | ||
| Total current liabilities | 58,162 | 45,671 |
| Operating lease liabilities, net of current portion | 120,481 | 105,247 |
| Long-term debt, net of current portion | 70,410 | 70,544 |
| Other long-term liabilities | 832 | 972 |
| Total liabilities | 249,885 | 222,434 |
| Commitments and contingencies (Note 14) | ||
| Stockholders' equity: | ||
| Common stock, $0.0001 par value, 75,000,000 shares authorized; 33,560,428 issued | ||
| and 31,283,975 outstanding at December 31, 2023 and 32,829,995 shares issued and | ||
| 31,735,423 outstanding at December 31, 2022 | 3 | 3 |
| Preferred stock, $0.0001 par value, 10,000,000 shares authorized; no shares issued | ||
| and outstanding at December 31, 2023 and December 31, 2022, respectively | — | — |
| Treasury stock, 2,276,453 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 |
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 net revenue for the year 2023 was $317,366. This figure represents the revenue generated by restaurants that are owned and operated by Benihana, rather than franchised locations. In comparison, the owned restaurant net revenue for 2022 was $300,859.
The increase in owned restaurant net revenue from 2022 to 2023 can be attributed to several factors. Specifically, a full year of sales from two STK restaurants that opened in the second half of 2022, the opening of three STK restaurants in the fourth quarter of 2023, and the opening of three Kona Grill restaurants during 2023 all contributed to the increase in revenue. However, it's important to note that comparable restaurant sales actually decreased by 2.7% in 2023 compared to 2022.
For a prospective franchisee, this information provides insight into the financial performance of Benihana's corporate-owned restaurants. While the overall revenue increased, the decrease in comparable restaurant sales could indicate challenges in maintaining sales at existing locations. It would be prudent for potential franchisees to further investigate the reasons behind this decrease and understand how Benihana plans to address it. Understanding the dynamics between new restaurant openings and the performance of existing restaurants is crucial for assessing the overall health and growth potential of the Benihana brand.