What was the net income 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 net income for 2023 was $82,149. This is a decrease compared to the net income in 2022, which was $1,141,393. This figure represents the company's profit after all expenses, including the cost of sales, administrative expenses, interest, and taxes, have been deducted from its total revenues.
For a prospective franchisee, net income is a critical indicator of the financial health and profitability of Golden Krust Caribbean Restaurant. A decreasing net income, as seen from 2022 to 2023, may signal potential challenges in the business model or market conditions that require further investigation. It is important to note that the net income reflects the performance of Golden Krust Franchising, Inc., which derives revenue from royalties, advertising charges, franchising fees, and company-owned restaurant sales.
In 2023, Golden Krust Caribbean Restaurant's total franchise revenues amounted to $5,936,152, while company-owned restaurant sales contributed $2,631,341. After deducting the cost of sales ($1,071,371) from the company-owned restaurant sales, the restaurant gross profit was $1,559,970. However, selling, general, and administrative expenses totaled $7,038,995, which significantly impacted the income from operations, resulting in $457,127. Other expenses, including interest and other costs, further reduced the income before income taxes to $157,731. The recoveries of provision for income taxes resulted in the final net income of $82,149.
Prospective franchisees should analyze these figures in conjunction with other financial data provided in the FDD, such as the balance sheets and cash flow statements, to gain a comprehensive understanding of Golden Krust Caribbean Restaurant's financial performance and stability. Additionally, it would be prudent to inquire about the factors contributing to the decrease in net income from 2022 to 2023 and the strategies the company plans to implement to improve profitability.