What was the net income (loss) 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 net income for the company in 2022 was $1,141,393. This figure represents the company's profit after all revenues and expenses, including provisions for income taxes, have been accounted for. In comparison, the company experienced a net loss of ($659,030) in 2021. This indicates a significant turnaround in financial performance for Golden Krust Caribbean Restaurant from 2021 to 2022.
For a prospective franchisee, this net income figure is an important indicator of the financial health and profitability of Golden Krust Caribbean Restaurant. A positive net income suggests that the company is well-managed and has a sustainable business model. However, it is essential to consider this figure in conjunction with other financial data, such as revenue, expenses, and cash flow, to get a comprehensive understanding of the company's financial performance.
It's also important to note that the net income figure can be influenced by various factors, such as changes in sales, operating costs, and tax rates. Therefore, prospective franchisees should carefully analyze the company's financial statements and consult with a financial advisor to assess the potential risks and rewards of investing in a Golden Krust Caribbean Restaurant franchise. Additionally, the FDD notes that the financial statements were prepared on the accrual basis of accounting, in accordance with accounting principles generally accepted in the United States of America.