What was the income (loss) from operations for Golden Krust Caribbean Restaurant in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| Year Ended December 31, 2022 | 2021 | |
|---|---|---|
| REVENUES | ||
| Royalties | $ 3,566,598 $ | 3,041,453 |
| Advertising Charges | 1,503,874 | 982,160 |
| Franchising Fees | 95,050 | 99,592 |
| Total Franchise Revenues | 5,165,522 | 4,123,205 |
| Company owned restaurant sales | 2,896,104 | 2,976,981 |
| Cost of sales | (1,226,078) | (1,226,592) |
| Restaurant Gross Profit | 1,670,026 | 1,750,389 |
| Total Gross Profit | 6,835,548 | 5,873,594 |
| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES | 5,729,761 | 7,611,396 |
| INCOME (LOSS) FROM OPERATIONS | 1,105,787 | (1,737,802) |
| OTHER INCOME (EXPENSE): | ||
| Interest income | 8,756 | 4,634 |
| Employee retention credit | - | 580,958 |
| Related party loan forgiveness | - | 567,961 |
| Interest expense | (51,235) | (40,408) |
| Other income (expense) | 6,208 | (12,623) |
| Total Other (Expense) Income, net | (36,271) | 1,100,522 |
| INCOME (LOSS) BEFORE PROVISION FOR | ||
| IN |
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 income from operations for the year ending December 31, 2022, was $1,105,787. This figure represents the company's earnings before considering other income and expenses such as interest, employee retention credits, related party loan forgiveness, and income taxes. In comparison, the company experienced a loss from operations of $1,737,802 in 2021.
For a prospective franchisee, this information is crucial as it provides insight into the operational profitability of Golden Krust Caribbean Restaurant. A positive income from operations suggests that the core business activities are generating revenue in excess of the associated costs. This can be a key indicator of the franchise's financial health and stability.
However, it's important to consider this figure in the context of the company's overall financial performance. While the income from operations was positive in 2022, other factors such as interest expenses and income taxes can impact the net income. Additionally, potential franchisees should analyze trends over multiple years to assess the consistency of the company's operational profitability. Reviewing the complete financial statements and notes is essential for a comprehensive understanding of the company's financial position.