What was the total owned restaurant net revenue for Benihana in 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
interested parties to evaluate companies in our industry. We use Adjusted EBITDA and Restaurant Operating Profit, alongside other GAAP measures such as net income, to measure profitability, 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 30 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 t
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the total owned restaurant net revenue for the year ended December 31, 2023, was $317,366,000. This figure represents the revenue generated by restaurants that are owned and operated by Benihana itself, not by franchisees. In comparison, the owned restaurant net revenue for the year ended December 31, 2022, was $300,859,000.
This increase of $16.5 million, or 5.5%, from 2022 to 2023 is attributed to several factors, including a full year of sales from two STK restaurants that opened in the second half of 2022, the opening of three STK restaurants in the fourth quarter of 2023, and the opening of three Kona Grill restaurants during 2023. However, it's important to note that comparable restaurant sales actually decreased by 2.7% in 2023 compared to 2022, indicating that while new restaurants boosted overall revenue, existing locations may have experienced a slight decline in sales.
For a prospective Benihana franchisee, this information provides insight into the revenue-generating capacity of company-owned restaurants. While franchisee performance may differ based on location, management, and other factors, understanding the financial performance of company-owned restaurants can help potential franchisees develop realistic expectations and assess the overall health and potential of the Benihana brand. It's also important to consider the factors that contributed to the revenue increase, such as new restaurant openings, and the slight decrease in comparable restaurant sales when evaluating the potential of a Benihana franchise.