What was the total equity for Benihana at the balance on January 1, 2021?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 31, 2022 and 2021, respectively) | 29,081 | 25,573 | ||
| 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 | ||
| Loss on early debt extinguishment | — | 600 | ||
| Gain on CARES Act Loan Forgiveness | — | (18,529) | ||
| Total other expenses (income), net | 2,113 | (14,149) | ||
| Income before provision for income taxes | 14,193 | 33,534 | ||
| Provision for income taxes | 874 | 1,586 | ||
| Net income | 13,319 | 31,948 | ||
| Less: net (loss) income attributable to noncontrolling interest | (215) | 600 | ||
| Net income attributable to The ONE Group Hospitality, Inc. | $ | 13,534 | $ | 31,348 |
| Currency translation (loss) gain | (224) | 1 | ||
| Comprehensive income attributable to The One Group Hospitality, Inc. | $ | 13,310 | $ | 31,349 |
| Net income attributable to The ONE Group Hospitality, Inc. per share: | ||||
| Basic net income per share | $ | 0.42 | $ | 1.01 |
| Diluted net income per share | $ | 0.40 | $ | 0.93 |
| Shares used in computing basic income per share | 32,400,515 | 31,155,224 | ||
| Shares used in computing diluted income per share | 33,871,797 | 33,794,344 | ||
THE ONE GROUP HOSPITALITY, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands, except share information)
| | Share
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total equity at the balance on January 1, 2021, was $21,979. This figure represents the sum of several components, including common stock, additional paid-in capital, retained earnings (or accumulated deficit), and accumulated other comprehensive loss, adjusted for noncontrolling interests.
For a prospective Benihana franchisee, understanding the equity position of the company is crucial as it reflects the financial stability and overall health of the franchisor. A higher equity balance generally indicates a stronger financial foundation, which can be reassuring for franchisees who are investing in the brand. It is important to note that equity can be affected by various factors, such as profitability, stock-based compensation, and other comprehensive income or losses.
The components of the equity section provide further insights. For instance, retained earnings indicate accumulated profits over time, while additional paid-in capital reflects the amount received from investors above the par value of the stock. Accumulated other comprehensive loss includes items such as unrealized gains or losses on investments and foreign currency translation adjustments. Noncontrolling interests represent the portion of equity in subsidiaries that is not attributable to the parent company.
Franchisees should monitor these equity components over time to assess the financial performance and stability of Benihana. A consistent increase in total equity and positive retained earnings would generally be viewed favorably, while a decline in equity or accumulated deficits may raise concerns. Reviewing these figures in conjunction with other financial metrics, such as revenue, expenses, and cash flow, can provide a comprehensive understanding of the franchisor's financial condition.