What was the gross profit 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 company's gross profit for 2023 was $7,496,122. This figure represents the total revenues less the cost of sales. Gross profit is an important indicator of a company's profitability before considering operating expenses, interest, and taxes.
For a prospective franchisee, understanding the gross profit of the franchisor is crucial because it provides insight into the overall financial health and efficiency of the franchise system. A higher gross profit margin suggests that the company is effectively managing its production costs and pricing strategies. This can translate to better support and resources for franchisees, as well as a more sustainable business model.
It is important to note that this gross profit figure reflects the performance of Golden Krust Caribbean Restaurant as a whole, including both franchise operations and company-owned restaurants. While the gross profit for the entire company is $7,496,122, prospective franchisees should also investigate the financial performance of individual franchise locations to gain a more accurate understanding of their potential earnings. Reviewing Item 19 in the FDD, which provides financial performance representations, and speaking with existing franchisees can offer valuable insights into the profitability of specific locations.