What was the retained earnings balance for Carbones Pizzeria as of 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 as of 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 an important indicator of a company's financial health and its ability to reinvest in future growth. A positive retained earnings balance suggests that the company has been profitable over time and has chosen to reinvest its earnings back into the business. This can be used for various purposes, such as expanding operations, reducing debt, or funding research and development.
For a prospective Carbones Pizzeria franchisee, this information provides insight into the financial stability and profitability of the franchisor. A healthy retained earnings balance can be seen as a positive sign, indicating that the company is well-managed and has a track record of financial success. However, it is important to consider this figure in conjunction with other financial data and information about the company's overall performance to get a comprehensive understanding of the franchise opportunity.