What was the total domestic income before income taxes for Benihana in 2022 (in thousands)?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
and 1,094,572 shares at cost at December 31, 2023 and | | | | December 31, 2022, respectively | (15,051) | (7,169) | | Additional paid-in capital | 58,270 | 55,583 | | Retained earnings | 28,884 | 24,166 | | Accumulated other comprehensive loss | (2,930) | (2,869) | | Total stockholders' equity | 69,176 | 69,714 | | | (1,816) | (1,124) | | Noncontrolling interests | | | | Total equity | 67,360 | 68,590 | | Total liabilities and equity | $ 317,245 | $ 291,024 |
See notes to the consolidated financial statements.
F-4
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (in thousands, except earnings per share and related share information)
| For the year ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues: | ||||
| Owned restaurant net revenue | $ | 317,366 | $ | 300,859 |
| Management, license and incentive fee revenue | 15,403 | 15,779 | ||
| Total revenues | 332,769 | 316,638 | ||
| Cost and expenses: | ||||
| Owned operating expenses: | ||||
| Owned restaurant cost of sales | 75,727 | 75,365 | ||
| Owned restaurant operating expenses | 191,250 | 174,689 | ||
| Total owned operating expenses | 266,977 | 250,054 | ||
| General and administrative (including stock-based compensation of $5,032 and | ||||
| $3,985 for the years ended December 31, 2023 and 2022, respectively) | 30,751 | 29,081 | ||
| Depreciation and amortization | 15,664 | 12,134 | ||
| Pre-opening expenses | 8,855 | 5,519 | ||
| Transaction costs | 207 | 123 | ||
| Lease termination expenses | — | 257 | ||
| COVID-19 related expenses | — | 2,534 | ||
| Other expenses | 1,021 | 630 | ||
| Total costs and expenses | 323,475 | 300,332 | ||
| Operating income | 9,294 | 16,306 | ||
| Other expenses, net: | ||||
| Interest expense, net of interest income | 7,028 | 2,113 | ||
| Total other expenses, net | 7,028 | 2,113 | ||
| Income before provision for income taxes | 2,266 | 14,193 | ||
| (Benefit) provision for income taxes |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the income before provision for income taxes for the year ended December 31, 2022, was $14,193,000. This figure represents the company's earnings from its owned restaurants and other revenue streams, less its operating expenses, general and administrative costs, depreciation, pre-opening expenses, transaction costs, lease termination expenses, COVID-19 related expenses, other expenses, and interest expenses.
For a prospective Benihana franchisee, this figure provides insight into the brand's overall profitability. It demonstrates the earnings potential of Benihana before accounting for income taxes. Understanding the components that contribute to this income, such as restaurant revenue and operating expenses, is crucial for evaluating the financial viability of a Benihana franchise.
It's important to note that this figure reflects the performance of Benihana's company-owned restaurants and may not be directly indicative of the potential profitability of a franchised location. Factors such as location, local market conditions, and the franchisee's management capabilities can significantly impact the financial performance of an individual franchise. Franchisees should conduct thorough due diligence and consult with financial advisors to assess the potential profitability of a Benihana franchise in their specific circumstances.
Additionally, prospective franchisees should be aware of the various expenses that can impact the income before taxes, including operating expenses, administrative costs, and interest expenses. Monitoring these expenses and implementing effective cost-management strategies is essential for maximizing profitability and achieving financial success as a Benihana franchisee.