What was the income (loss) before provision for income taxes for Golden Krust Caribbean Restaurant in 2022?
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 income before provision for income taxes in 2022 was $1,069,516. This indicates that Golden Krust Caribbean Restaurant was profitable before accounting for income taxes during that year. In contrast, the income before provision for income taxes in 2021 was a loss of $637,280.
For a prospective franchisee, this information is valuable as it provides insight into the financial performance of Golden Krust Caribbean Restaurant. A positive income before taxes suggests that the company's operations are generating sufficient revenue to cover its expenses, which can be a positive indicator of the brand's financial health. However, it is essential to consider this figure in conjunction with other financial data and factors, such as revenue trends, expenses, and overall economic conditions, to gain a comprehensive understanding of the company's financial stability and potential for future growth.
It's also important to note that this income figure is before accounting for income taxes, which can significantly impact the final net income. Franchisees should review the complete financial statements and consult with a financial advisor to assess the potential tax implications and overall profitability of investing in a Golden Krust Caribbean Restaurant franchise. Understanding these financial details can help potential franchisees make informed decisions about their investment and business strategy.