What was the restaurant gross profit 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 restaurant gross profit for 2023 was $1,559,970. This figure represents the gross profit specifically from the company-owned restaurants, not the entire franchise system. The restaurant gross profit is calculated by subtracting the cost of sales from the company owned restaurant sales.
In 2023, the company owned restaurant sales totaled $2,631,341 with a cost of sales of $1,071,371. This resulted in the $1,559,970 restaurant gross profit.
It is important to note that this gross profit only reflects the performance of company-owned restaurants. A prospective franchisee should focus on Item 19 within the FDD to understand potential revenues, costs, and profits for franchised locations. Reviewing the performance of company-owned stores can provide some insight into the brand's operations, but franchised locations may perform differently due to various factors such as location, management, and local market conditions.
Understanding the distinction between company-owned and franchised restaurant performance is crucial for any potential franchisee. While the FDD provides financial statements for the company, franchisees need to carefully evaluate the potential financial performance of a franchised Golden Krust Caribbean Restaurant location.