What were the total costs and expenses for Benihana in 2020?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
net income to EBITDA and Adjusted EBITDA and for a reconciliation of operating income (loss) 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, | ||||
|---|---|---|---|---|
| 2021 | 2020 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 264,404 | $ | 136,618 |
| Management, license and incentive fee revenue | 12,774 | 5,325 | ||
| Total revenues | 277,178 | 141,943 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 67,468 | 34,024 | ||
| Owned restaurant operating expenses | 144,529 | 87,042 | ||
| Total owned operating expenses | 211,997 | 121,066 | ||
| General and administrative (including stock-based compensation of $3,618 | ||||
| and $1,773 for the years ended December | 25,573 | 13,922 | ||
| 31, | ||||
| 2021 and 2020, respectively) | ||||
| Depreciation and amortization | 10,790 | 10,114 | ||
| COVID-19 related expenses | 5,821 | 5,492 | ||
| Transaction costs | 160 | 1,109 | ||
| Lease termination expenses | 1,912 | 3,315 | ||
| Agreement restructuring expenses | 503 | 452 | ||
| Pre-opening expenses | 1,037 | 178 | ||
| Other income, net | — | (11) | ||
| Total costs and expenses | 257,793 | 155,637 | ||
| Operating income (loss) | 19,385 | (13,694) | ||
| Other (income) expenses, net: | ||||
| Interest expense, net of interest income | 3,780 | 5,329 | ||
| Loss on early debt extinguishment | 600 | — | ||
| Gain on CARES Act Loan Forgiveness | (18,529) | — | ||
| Total other (income) expenses, net | (14,149) | 5,329 | ||
| Income (loss) before provision (benefit) for income taxes | 33,534 | (19,023) | ||
| Provis |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total costs and expenses for Benihana in 2020 were $155,637. This figure is a key indicator of the overall financial performance of Benihana during that year, reflecting all operational and administrative costs incurred. Understanding this number helps potential franchisees assess the financial health and efficiency of the Benihana franchise system.
Breaking down the costs and expenses, 'Owned restaurant cost of sales' amounted to $34,024, and 'Owned restaurant operating expenses' totaled $87,042. General and administrative expenses, including stock-based compensation, were $13,922. Additionally, depreciation and amortization accounted for $10,114, while COVID-19 related expenses were $5,492. Transaction costs were $1,109, lease termination expenses were $3,315 and agreement restructuring expenses were $452. Pre-opening expenses were relatively low at $178, and there was a net other income of $11.
These figures provide a comprehensive view of where Benihana allocated its resources in 2020. For a prospective franchisee, this detailed breakdown is invaluable for financial planning and benchmarking. It allows them to compare these expenses against revenues to understand profitability and operational efficiency. Furthermore, it highlights the impact of specific factors, such as COVID-19 related expenses, on the overall cost structure.
It's important to note that these costs and expenses are specific to the year 2020 and may not be representative of other years due to varying economic conditions and company strategies. A potential franchisee should review these figures in conjunction with more recent financial statements and other relevant information to make an informed investment decision.