What was the weighted average exercise price for Cinnabon shares outstanding at December 31, 2023?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
ertain options have vesting requirements based upon achieving certain operating results. The options expire 10 years from the date of grant or in the event of a change in control under certain circumstances, as defined in the Plans.
The weighted average grant date fair value of options granted during the fiscal years ended December 29, 2024 and December 31, 2023 was $115.43 and $105.71, respectively, per option. The Parent reduced the exercise prices of unvested outstanding options and paid out bonuses on vested outstan
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the weighted average exercise price for shares outstanding at December 31, 2023, was $171.85. This figure represents the average price that holders of Cinnabon stock options would need to pay to exercise their options and purchase the underlying shares as of that date. The total number of shares outstanding at that time was 211,940.
This information is relevant to prospective franchisees as it provides insight into the equity structure and compensation practices within Cinnabon's parent company, GoTo Foods Systems LLC. While franchisees typically do not directly participate in stock option plans, understanding the financial health and employee incentives of the parent company can offer a broader perspective on the stability and management's focus.
The FDD also details changes in the number of shares and their weighted average exercise price over time. For instance, between December 25, 2022, and December 31, 2023, the number of outstanding shares decreased from 218,837 to 211,940, while the weighted average exercise price decreased from $182.43 to $171.85. These changes reflect the combined effect of stock options being granted, exercised, forfeited, or expired during that period.
Reviewing these figures can help potential franchisees assess the overall financial management and compensation strategies of GoTo Foods Systems LLC, which ultimately impacts the Cinnabon brand. While not directly tied to the operations of a franchise, such information contributes to a more comprehensive understanding of the franchisor's financial practices.