What were the total costs and expenses for Benihana in 2021?
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 2021 were $257,793. This figure is a key indicator of the financial health and operational efficiency of Benihana during that year. It represents the sum of all expenses incurred to generate the reported revenues. These expenses include owned restaurant cost of sales ($67,468), owned restaurant operating expenses ($144,529), general and administrative costs ($25,573 which includes stock-based compensation of $3,618), depreciation and amortization ($10,790), COVID-19 related expenses ($5,821), transaction costs ($160), lease termination expenses ($1,912), agreement restructuring expenses ($503), and pre-opening expenses ($1,037).
Understanding the composition of these costs and expenses is crucial for potential franchisees. For instance, the owned restaurant cost of sales reflects the direct costs associated with food and beverage, while operating expenses cover day-to-day costs like labor, utilities, and marketing. General and administrative expenses include salaries, legal fees, and other overhead costs. Depreciation and amortization account for the wear and tear of assets. COVID-19 related expenses highlight the impact of the pandemic on operational costs, and pre-opening expenses relate to the opening of STK Bellevue in July 2021.
Franchisees should pay close attention to these figures as they provide a benchmark for assessing the financial performance of Benihana restaurants. By comparing these costs and expenses to industry averages and to their own projected revenues and expenses, prospective franchisees can gain a better understanding of the potential profitability and financial risks associated with investing in a Benihana franchise. It's also important to note that these figures are specific to the year 2021 and may not be representative of other years due to changing economic conditions or company-specific factors.