What was the total authorized amount for the Benihana stock purchase program as of September 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
stock options, warrants and restricted share units totaling less than 0.1 million and 0.4 million, respectively, were determined to be anti-dilutive and were therefore excluded from the calculation of diluted earnings per share.
**Note 11 –
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, in September 2022, Benihana's Board of Directors authorized a stock purchase program with a maximum repurchase amount of $10.0 million of outstanding common stock. By December 31, 2022, Benihana had repurchased 1,081,938 shares for $7.1 million under this program.
This means that as of September 2022, Benihana had the authority to spend up to $10 million to buy back its own stock. The fact that they had only spent $7.1 million of that amount by the end of the year suggests they had not yet fully utilized the authorized amount.
For a prospective franchisee, this information provides insight into how Benihana manages its capital and returns value to its shareholders. Stock repurchase programs can signal that the company believes its stock is undervalued, and it is using its cash to increase shareholder value. However, it's important to note that the decision to authorize and execute stock repurchase programs can be influenced by various factors, including the company's financial performance, market conditions, and alternative investment opportunities.