What were Benihana's total costs and expenses for the year ended December 31, 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 |
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 their operations for the year ending December 31, 2022, amounted to $300,332. This figure encompasses a variety of expenditures, providing insight into the financial structure of Benihana's business model. Understanding these costs is crucial for potential franchisees to assess the financial viability of investing in a Benihana franchise. These costs are a significant factor in determining the overall profitability and financial health of the franchise.
Breaking down the components of these costs, the most substantial portions are the 'Owned restaurant cost of sales' at $75,365 and 'Owned restaurant operating expenses' at $174,689. These two categories alone total $250,054, representing the bulk of the operational expenses for Benihana's owned restaurants. Other notable expenses include 'General and administrative' costs of $29,081 (which includes stock-based compensation of $3,985) and 'Depreciation and amortization' at $12,134. These figures offer a detailed view of where Benihana allocates its resources.
Additional expenses, though smaller in comparison, include 'Pre-opening expenses' of $5,519 and 'COVID-19 related expenses' of $2,534, reflecting the ongoing impacts of the pandemic and the costs associated with opening new locations. 'Transaction costs' were relatively low at $123, while 'Lease termination expenses' amounted to $257. It is important to note that 'Agreement restructuring expenses' were listed as zero for 2022. Analyzing these figures in detail allows prospective franchisees to understand the diverse range of costs involved in running a Benihana franchise and to plan their investment and operational strategies accordingly.