What was the Retained Earnings amount for Carbones Pizzeria on October 31, 2022?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Net income | $ 179,901 |
M&T PIZZA INCORPORATED AND SUBSIDIARIES Consolidated Statement of Changes in Stockholder's Equity For the Year Ended October 31, 2023
| Commo Shares | on Stock Amount | Common Stock nares Amount | Retained Earnings | Treasury stock | Total Equity |
|---|
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the Retained Earnings balance on October 31, 2022, was $707,489. This figure represents the accumulated profits of Carbones Pizzeria that have been retained in the business rather than distributed as dividends to owners.
Retained earnings are a crucial indicator of a company's financial health and its ability to reinvest in growth, manage debt, and weather economic downturns. A positive and growing retained earnings balance typically suggests that the company is profitable and financially stable. For a prospective franchisee, this indicates that Carbones Pizzeria has a history of generating profits and managing its finances effectively.
However, it is important to note that retained earnings are not the same as cash. The funds may be tied up in assets such as equipment, inventory, or accounts receivable. Therefore, while a strong retained earnings balance is a positive sign, it is essential to consider other financial metrics and conduct thorough due diligence to assess the overall financial condition of Carbones Pizzeria. Reviewing several years of financial statements would provide a better understanding of the trend and consistency of retained earnings.
Prospective franchisees should consult with a financial advisor to fully understand the implications of the retained earnings figure and how it relates to the overall financial performance and stability of Carbones Pizzeria. Understanding the context of this number within the broader financial picture is crucial for making an informed investment decision.