What was the weighted average exercise price for Benihana shares outstanding at December 31, 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
tock-based compensation cost for 2023 and 2022 was $5.0 million and $4.0 million, respectively, and is included in general and administrative expenses in the consolidated statements of operations and comprehensive income. Included in stock-based compensation cost was $0.5 million and $0.3 million of unrestricted stock granted to directors for 2023 and 2022, respectively. Such grants were awarded consistent with the Board's compensation practices. Stock-based compensation for 2023 and 2022 included $0.7 million and $0.2 million of compensation costs for market condition-based restricted stock units ("RSU"). Refer to discussion of CEO RSUs below.
Stock Option Activity
Changes in outstanding stock options during the years ended December 31, 2023 and 2022 were as follows:
| | Shares | We
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the weighted average exercise price for shares outstanding as of December 31, 2023, was $2.35. At that time, there were 673,942 shares outstanding. This figure is relevant to potential franchisees as it provides insight into the company's stock structure and potential dilution.
This information is part of a broader table detailing share activity over time. For instance, the table also shows that at January 1, 2022, the weighted average exercise price was $3.36 with 1,252,352 shares outstanding. Throughout 2022, shares were exercised at a weighted average price of $2.13, and by December 31, 2022, the outstanding shares were 1,187,352 with a weighted average exercise price of $3.43.
The changes in the weighted average exercise price and the number of outstanding shares reflect the company's stock-related activities, such as the exercising or forfeiting of shares. These activities can impact the value of shares and are important for understanding the financial health and management of Benihana. Understanding these figures can help a franchisee assess the stability and potential growth of the franchise system.
Prospective franchisees should consider these figures in conjunction with other financial data provided in the FDD to gain a comprehensive understanding of Benihana's financial structure and stock activity. It is also advisable to consult with a financial advisor to fully understand the implications of these figures.