What was the other expense, net, 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 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 7,038,995 | 5,856,268 |
| INCOME FROM OPERATIONS | 457,127 | 1,105,787 |
| OTHER INCOME (EXPENSE) | ||
| Interest Income | 188 | 8,756 |
| Interest Expense | (122,609) | (38,455) |
| Other Expense | (176,975) | (6,572) |
| Other Expense, Net | (299,396) | (36,271) |
| INCOME BEFORE RECOVERIES OF (PROVISION FOR) |
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 other expense, net, for the company in 2023 was ($299,396). This figure is derived from the consolidated statements of operations for the years ending December 31, 2023, and December 31, 2022.
This expense is a component of the overall financial performance of Golden Krust Caribbean Restaurant and contributes to the calculation of income before recoveries of income taxes. In comparison, the other expense, net, in 2022 was ($36,271), indicating a significant increase in this expense category from 2022 to 2023.
Prospective franchisees should consider this figure as part of their due diligence, understanding that 'other expenses, net' can encompass a variety of costs not specifically categorized elsewhere. Further investigation into the nature of these expenses would be prudent to assess potential financial risks and opportunities. Understanding the composition of this expense may provide insights into the operational costs and financial management of Golden Krust Caribbean Restaurant.