What was the income from operations for Golden Krust Caribbean Restaurant in 2022?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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) | |||
| INCOME TAXES | 157,731 | 1,069,516 | |
| RECOVERIES OF (PROVISION FOR) INCOME TAXES | (75,582) | 71,877 | |
| NET INCOME | $ 82,149 | $ 1,141,393 |
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to Golden Krust Caribbean Restaurant's 2024 Franchise Disclosure Document, the income from operations in 2022 was $1,105,787. This figure represents the company's earnings before considering other income, expenses, and income taxes. It is calculated by subtracting the selling, general, and administrative expenses from the gross profit.
For a prospective franchisee, this number provides insight into the operational efficiency and profitability of Golden Krust Caribbean Restaurant's business model. A higher income from operations suggests that the company is effectively managing its core business activities and controlling its expenses. This can be a positive indicator for potential investors as it reflects the underlying strength of the franchise system.
However, it's important to note that this figure does not represent the net income, which takes into account other factors such as interest income, interest expense, other expenses, and income taxes. Therefore, while the income from operations provides a snapshot of the company's operational performance, a comprehensive analysis of the financial statements is necessary to assess the overall financial health and profitability of Golden Krust Caribbean Restaurant. Franchisees should review the complete Item 23 in the FDD with a financial advisor to fully understand the revenue and expenses of the company.