What was the amount of dividends paid by Golden Corral as of January 1, 2025?
Golden_Corral Franchise · 2025 FDDAnswer from 2025 FDD Document
00,000) | (50,000,000) | (43,000,000) | | Ending | 18,403,984 | 18,308,301 | 18,061,608 | | | $ | $ | $ |
Statements of Cash Flows
Years Ended January 1, 2025, January 3, 2024 and December 28, 2022
| January 1, 2025 | January 3, 2024 | December 28, 2022 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net income | $ 42,095,683 | $ 50,246,693 | $ 43,590,137 |
| Noncash items included in income | |||
| Amortization of costs of contracts | 293,102 | 89,897 | 118,535 |
| Increase (decrease) in cash due to changes in | |||
| Accounts receivable | (919,999) | (349,275) | (424,733) |
| Other current assets | (147,866) | (514,732) | (1,128,185) |
| Noncurrent receivables | 225,741 | 38,285 | 53,694 |
| Deferred credits | (4,179) | (50,851) | (408,911) |
| Accounts payable | (866,281) | 506,885 | (3,729,931) |
| Other current liabilities | {2,579,721} | 1,376,405 | 1,143,618 |
| Net cash provided by operating activities | 38,096,480 | 51,343,307 | 39,214,224 |
| Cash flows from financing activities | |||
| Dividends paid | (46,000,000) | (47,000,000) | (41,000,000) |
| (Increase) decrease in due from parent | 5,371,060 | (5,853,258) | 5,416,093 |
| Net cash used in financing activities | (40,628,940) | (52,853,258) | (35,583,907) |
| Net increase (decrease) in cash | (2,532,460) | (1,509,951) | 3,630,317 |
| Cash and cash equivalents | |||
| Beginning | 15,105,146 | 16,615,097 | 12,984,780 |
| Ending | $ 12,572,686 | $ 15,105,146 | $ 16,615,097 |
| Supplemental disclosures of | |||
| cash flow information | |||
| Cash paid during the ye |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 84)
What This Means (2025 FDD)
According to Golden Corral's 2025 Franchise Disclosure Document, the dividends paid as of January 1, 2025, were $46,000,000. This figure is part of the cash flow statement, specifically under cash flows from financing activities. The document also shows dividends paid for the previous two years, which were $47,000,000 as of January 3, 2024, and $41,000,000 as of December 28, 2022.
For a prospective Golden Corral franchisee, understanding these dividend payments provides insight into how the company manages its finances and distributes profits to its parent company. Since Golden Corral Franchising Systems, Inc. is a wholly-owned subsidiary of Golden Corral Corporation, these dividends represent a significant transfer of funds to the parent company. This could influence the financial strategy and capital allocation decisions within the franchise system.
It's important to note that these dividend payments are classified as cash flows from financing activities, indicating they are related to the company's capital structure and shareholder distributions. The consistent payment of substantial dividends over the three years suggests a stable financial performance and a commitment to returning value to its parent company. However, franchisees should consider how these large dividend payments might affect the resources available for reinvestment in the franchise system, such as technology upgrades, marketing initiatives, or franchisee support programs.
Furthermore, the FDD also indicates that there were declared dividends not paid of $4,000,000 as of January 1, 2025. This means that while $46,000,000 was paid out, an additional $4,000,000 was declared but not yet disbursed. This could have implications for the company's short-term liquidity and its obligations to its parent company. Prospective franchisees should inquire about the timing and impact of these unpaid dividends on the overall financial health of the franchise system.