What was the net loss for Golden Krust Caribbean Restaurant in 2021?
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 company experienced a net loss in 2021. Specifically, the net loss for the year ended December 31, 2021, was ($659,030). This figure is derived from the consolidated statements of operations, which provide a detailed breakdown of the company's revenues, expenses, and overall financial performance.
In addition to the net loss, the 2024 FDD reveals other financial details for 2021. Golden Krust Caribbean Restaurant's total franchise revenues amounted to $4,123,205, while company-owned restaurant sales reached $2,976,981. However, the cost of sales was ($1,226,592), resulting in a restaurant gross profit of $1,750,389. Despite these revenues, the company's selling, general, and administrative expenses were significantly higher at $7,611,396, contributing to a loss from operations of ($1,737,802).
Other income and expenses further influenced the net loss. Interest income was $4,634, and the company benefited from an employee retention credit of $580,958 and related party loan forgiveness of $567,961. However, interest expenses of ($40,408) and other expenses of ($12,623) partially offset these gains. Overall, the total other income, net, was $1,100,522, which helped to reduce the loss before income taxes to ($637,280). The provision for income taxes was ($21,750), ultimately resulting in the net loss of ($659,030) for the year 2021. The comprehensive loss, which includes other comprehensive income or losses, was ($664,096).