What were the total costs and expenses for Benihana in 2022?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
lity, as a key profitability target in our budgets, and to compare our performance against that of peer companies despite possible differences in calculation.
Please refer to the table on page 28 for our reconciliation of net income to EBITDA and Adjusted EBITDA and for a reconciliation of operating income 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, | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 300,859 | $ | 264,404 |
| Management, license and incentive fee revenue | 15,779 | 12,774 | ||
| Total revenues | 316,638 | 277,178 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 75,365 | 67,468 | ||
| Owned restaurant operating expenses | 174,689 | 144,529 | ||
| Total owned operating expenses | 250,054 | 211,997 | ||
| General and administrative (including stock-based compensation of $3,985 | ||||
| and $3,618 for the years ended December | 29,081 | 25,573 | ||
| 31, | ||||
| 2022 and 2021, respectively) | ||||
| Depreciation and amortization | 12,134 | 10,790 | ||
| COVID-19 related expenses | 2,534 | 5,821 | ||
| Transaction costs | 123 | 160 | ||
| Lease termination expenses | 257 | 1,912 | ||
| Agreement restructuring expenses | — | 503 | ||
| Pre-opening expenses | 5,519 | 1,037 | ||
| Write-off of trademark costs and other | 630 | — | ||
| Total costs and expenses | 300,332 | 257,793 | ||
| Operating income | 16,306 | 19,385 | ||
| Other expenses (income), net: | ||||
| Interest expense, net of interest income | 2,113 | 3,780 | ||
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 the year ended December 31, 2022, were $300,332. This figure encompasses a range of operational and administrative costs. Understanding the components of these costs and expenses is crucial for potential franchisees to assess the financial health and operational efficiency of Benihana. These costs are a key factor in determining the profitability of a Benihana franchise.
Specifically, the total costs and expenses include owned restaurant cost of sales ($75,365) and owned restaurant operating expenses ($174,689), which together make up the total owned operating expenses ($250,054). Additionally, the costs include general and administrative expenses ($29,081), depreciation and amortization ($12,134), COVID-19 related expenses ($2,534), transaction costs ($123), lease termination expenses ($257), pre-opening expenses ($5,519), and write-off of trademark costs and other expenses ($630).
Prospective franchisees should carefully examine these individual expense categories to understand where Benihana spends its money. For example, the general and administrative expenses include stock-based compensation. Pre-opening expenses relate to the opening of new STK and Kona Grill restaurants. COVID-19 related expenses reflect costs incurred due to the pandemic. Lease termination expenses are costs associated with closed or disputed locations. Understanding these expenses can help a franchisee better predict their own potential costs and profitability.