What were the company-owned restaurant sales for Golden Krust Caribbean Restaurant in 2023?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
57,643 |
GOLDEN KRUST FRANCHISING, INC. CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2023 AND 2022
| 2023 | 2022 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 4,094,692 | $ 3,693,105 |
| Advertising Charges | 1,718,952 | 1,503,874 |
| Franchising Fees | 122,508 | 95,050 |
| Total Franchise Revenues | 5,936,152 | 5,292,029 |
| Company Owned Restaurant Sales | 2,631,341 | 2,896,104 |
| Cost of Sales | (1,071,371) | (1,226,078) |
| Restaurant Gross Profit | 1,559,970 | 1,670,026 |
| GROSS PROFIT | 7,496,122 | 6,962,055 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the company-owned restaurant sales for 2023 were $2,631,341. This figure represents the total revenue generated by restaurants directly operated by Golden Krust Caribbean Restaurant, as opposed to franchised locations. In 2022, the company-owned restaurant sales were $2,896,104, indicating a decrease in sales from 2022 to 2023.
For a prospective franchisee, this information provides insight into the performance of Golden Krust Caribbean Restaurant's corporate-owned stores. While not directly indicative of a franchisee's potential earnings, it can offer a benchmark for sales performance under direct company management. It's important to note that the company had one company-owned restaurant operating in North America as of December 31, 2023, whereas it had two in 2022, which could account for the decrease in sales.
Additionally, the FDD states that the cost of sales for company-owned restaurants was $1,071,371 in 2023, resulting in a restaurant gross profit of $1,559,970. In 2022, the cost of sales was $1,226,078, leading to a restaurant gross profit of $1,670,026. These figures can help potential franchisees understand the cost structure and profitability of the company-owned restaurants, providing a basis for comparison when evaluating their own potential operational costs and revenues. Franchisees should investigate further to understand the reasons for the decrease in sales and gross profit from 2022 to 2023.