What was the total comprehensive loss for Golden Krust Caribbean Restaurant as of December 31, 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's comprehensive loss as of December 31, 2021, was approximately $664,096. This figure represents the overall financial loss, taking into account both the net loss and other comprehensive income or losses. For Golden Krust Caribbean Restaurant, the other comprehensive loss totaled $5,066.
This comprehensive loss indicates that Golden Krust Caribbean Restaurant experienced a challenging financial year in 2021. While net loss is a common measure of financial performance, the comprehensive loss provides a more complete picture by including items such as unrealized gains or losses on investments and foreign currency translation adjustments. In this case, the other comprehensive loss slightly worsened the overall financial picture for the year.
A prospective franchisee should carefully consider these figures and trends. Reviewing multiple years of financial statements would provide a better understanding of the financial stability and performance of Golden Krust Caribbean Restaurant. It is important to investigate the reasons behind the loss and whether the company has taken steps to improve its financial performance in subsequent years. Understanding the factors contributing to the loss can help a franchisee assess the potential risks and opportunities associated with investing in a Golden Krust Caribbean Restaurant franchise.
It is also important to note that the provided financial information is specific to Golden Krust Franchising, Inc. and may not reflect the performance of individual franchise locations. A prospective franchisee should conduct their own due diligence, including reviewing the financial performance of existing franchise locations and consulting with financial advisors, to make an informed investment decision.