What were Benihana's total capital expenditures for 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Net cash provided by (used in): | ||||
| Operating activities | $ | 25,251 | $ | 30,966 |
| Investing activities | (32,629) | (11,467) | ||
| Financing activities | 39,102 | (20,275) | ||
| Effect of exchange rate changes on cash | (217) | 5 | ||
| Net increase (decrease) in cash and cash equivalents | $ | 31,507 | $ | (771) |
Operating Activities. Net cash provided by operating activities was $25.3 million for 2022 compared to $31.0 million for 2021. The decrease in net cash provid
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the net cash used in investing activities for 2022 was $32.7 million. This amount was primarily allocated to the construction of STK restaurants in Dallas, Texas, and San Francisco, California, as well as Kona Grill restaurants in Riverton, Utah, and Columbus, Ohio. Additionally, these funds covered capital expenditures for existing restaurants.
This figure is significantly higher than the $11.5 million used for investing activities in 2021, indicating a substantial increase in investment during 2022. This surge in investment reflects Benihana's strategic focus on expanding its STK and Kona Grill brands, alongside improvements to its existing restaurant locations.
For a prospective Benihana franchisee, this indicates the scale of financial investment that the company is willing to make in its brands. While this figure does not directly represent the investment required by a franchisee, it provides insight into the company's overall financial strategy and commitment to growth and development. Franchisees should inquire about how Benihana's capital expenditure strategy might impact their operations or opportunities for expansion and improvement.