SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarter Ended January 5, 1997
or,
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File No. 0-12644
Benihana Inc.
(Exact name of registrant as specified in its charter)
Delaware 65-0538630
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8685 Northwest 53rd Terrace, Miami, Florida 33166
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (305) 593-0770
None
Former name, former address and former fiscal year, if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
Indicate by number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common stock $.10 par value, 3,527,066 shares outstanding at January 29,1997
Class A common stock $.10 par value, 2,516,300 shares outstanding
at January 29, 1997
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
PART I - Financial Information
<TABLE>
CONSOLIDATED BALANCE SHEETS (See Note 2)
All dollar amounts in thousands, except per share amounts
<CAPTION>
(Unaudited)
January 5, March 31,
1997 1996
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Current assets
Cash and equivalents $ 6,532 $ 4,722
Receivables (net of allowance for doubtful amounts of
$37 in January 1997 and $57 in March 1996, respectively)
Trade 188 155
Affiliates 41 91
Other 10 6
- -------------------------------------------------------------------------------------------------------------------
Total Receivables 239 252
Inventories (Note 3) 2,877 1,833
Prepaid expenses (Note 4) 1,823 920
- -------------------------------------------------------------------------------------------------------------------
Total Current Assets 11,471 7,727
Property and equipment, net 24,377 24,915
Due from affiliates, long term 205 232
Deferred income taxes 1,577 1,577
Other assets (Note 5) 2,097 1,806
- -------------------------------------------------------------------------------------------------------------------
$ 39,727 $36,257
- -------------------------------------------------------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 7,325 $ 6,539
Current maturities of long-term debt and
obligations under capital leases 1,392 1,488
- -------------------------------------------------------------------------------------------------------------------
Total Current Liabilities 8,717 8,027
Long-term debt 5,409 6,104
Due to affiliates - long term 334 439
Obligations under capital leases 3,914 4,361
Stockholders' Equity
Preferred stock - $1.00 par value;
authorized - 5,000,000 shares, issued
and outstanding - 2,000 shares 2 2
Common stock - $.10 par value;
convertible, authorized - 12,000,000
shares, issued and outstanding -
3,527,066 shares and 3,516,066 shares,
respectively 353 352
Class A common stock - $.10 par value;
authorized - 20,000,000 shares, issued
and outstanding - 2,516,300 shares and
2,316,300 shares, respectively 252 232
Additional paid-in capital 14,839 14,285
Retained earnings 5,907 2,455
- -------------------------------------------------------------------------------------------------------------------
Total Stockholders' Equity 21,353 17,326
- -------------------------------------------------------------------------------------------------------------------
$ 39,727 $36,257
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-1-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS (See Note 2)
(UNAUDITED)
All dollar amounts in thousands, except per share amounts
<CAPTION>
Three Periods Ended
January 5, December 31,
1997 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Net restaurant food and beverage sales $19,573 $18,837
Other income 253 132
- -------------------------------------------------------------------------------------------------------------------
Total Revenues 19,826 18,969
Costs and Expenses
Cost of restaurant food and beverage sales 5,078 4,789
Restaurant expenses 11,693 11,097
General and administrative expenses 784 1,028
Interest expense 209 299
- -------------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 17,764 17,213
- -------------------------------------------------------------------------------------------------------------------
Income from operations before income taxes 2,062 1,756
Income tax provision 660 447
- -------------------------------------------------------------------------------------------------------------------
Net Income $ 1,402 $ 1,309
- -------------------------------------------------------------------------------------------------------------------
Pro Forma Net Income Per Common Share (Note 6)
Primary earnings per common share $ .22 $ .21
Fully diluted earnings per common share $ .22 $ .21
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-2-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS (See Note 2)
(UNAUDITED)
All dollar amounts in thousands, except per share amounts
<CAPTION>
Ten Periods Ended
January 5, December 31,
1997 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Revenues
Net restaurant food and beverage sales $63,996 $59,942
Other income 611 397
- -------------------------------------------------------------------------------------------------------------------
Total Revenues 64,607 60,339
Costs and Expenses
Cost of restaurant food and beverage sales 16,430 15,896
Restaurant expenses 39,076 36,111
General and administrative expenses 3,162 3,209
Interest expense 725 978
- -------------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 59,393 56,194
- -------------------------------------------------------------------------------------------------------------------
Income from operations before income taxes 5,214 4,145
Income tax provision 1,668 1,036
- -------------------------------------------------------------------------------------------------------------------
Net Income $ 3,546 $ 3,109
- -------------------------------------------------------------------------------------------------------------------
Pro Forma Net Income Per Common Share (Note 6)
Primary earnings per common share $ .57 $ .50
Fully diluted earnings per common share $ .56 $ .50
- -------------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-3-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (See Note 2)
(UNAUDITED)
All dollar amounts in thousands, except per share amounts
<CAPTION>
Class A Additional
Preferred Common Common Paid-in Retained
Stock Stock Stock Capital Earnings
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, March 31, 1996 $2 $352 $232 $14,285 $2,455
Net income 3,546
Dividend on preferred stock (94)
Exercise of stock options and
warrants 1 20 554
- --------------------------------------------------------------------------------------------------------------
Balance, January 5, 1997 $2 $353 $252 $14,839 $5,907
- --------------------------------------------------------------------------------------------------------------
See notes to consolidated financial statements
</TABLE>
-4-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (See Note 2)
(UNAUDITED)
All dollar amounts in thousands
<CAPTION>
Ten Periods Ended
January 5, December 31,
1997 1995
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operating Activities
Net income $ 3,546 $ 3,109
Adjustments to reconcile net income to net
Cash provided by operating activities:
Depreciation and amortization 1,937 1,679
Deferred taxes 742
Issuance of common stock for incentive compensation 5
Change in operating assets and liabilities
that provided or (used) cash:
Accounts receivable 13 48
Inventories (1,044) (259)
Prepaid expenses (903) (106)
Other assets (105) 2
Accounts payable and accrued expenses 786 (995)
- -------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 4,230 4,225
- -------------------------------------------------------------------------------------------------------------------
Investing activities
Expenditures for property and equipment (1,305) (1,669)
Investment in Limited Partnership (253)
- -------------------------------------------------------------------------------------------------------------------
Net cash (used in) investing activities (1,558) (1,669)
- -------------------------------------------------------------------------------------------------------------------
Financing Activities
Repayment of long-term debt and obligations
under capital leases (1,343) (2,116)
Proceeds from issuance of long-term debt 319
Net cash distributed to BOT (110)
Dividend paid (94) (77)
Proceeds from issuance of common stock 575 45
- -------------------------------------------------------------------------------------------------------------------
Net cash (used in) financing activities (862) (1,939)
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 1,810 617
Cash and cash equivalents, beginning of year 4,722 1,854
- -------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 6,532 $ 2,471
- -------------------------------------------------------------------------------------------------------------------
Supplemental Cash Flow Information
Cash paid during the ten periods:
Interest $ 623 $ 603
Income taxes 1,544 348
See notes to consolidated financial statements.
</TABLE>
-5-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TEN PERIODS ENDED JANUARY 5, 1997 AND DECEMBER 31, 1995
(UNAUDITED)
1. GENERAL
The accompanying consolidated financial statements are unaudited and reflect
all adjustments (consisting only of normal recurring adjustments at January
5, 1997) which are, in the opinion of management, necessary for a fair
presentation of financial position and results of operations. The results of
operations for the ten periods (forty weeks) ended January 5, 1997 are not
necessarily indicative of the results to be expected for the full year.
Certain information and footnotes normally included in financial statements
prepared in accordance with generally accepted accounting principles have
been condensed or omitted. The Company's fiscal year consists of 13
four-week accounting periods.
2. BASIS OF PRESENTATION AND ACQUISITION
The Company's financial statements and the discussion and data presented
below reflect a reorganization pursuant to which the Company acquired
seventeen restaurants, four license agreements and the U.S. trademarks of
Benihana of Tokyo, Inc. and became the successor to Benihana National Corp.
through the merger of BNC and a wholly owned subsidiary of the Company
through a share-for-share exchange of common equity. Accordingly, the
Company's financial statements for the period ended December 31, 1995 have
been restated retroactively to include the historical accounts of BNC and
the BOT Restaurants without adjustment. The reorganization has been
accounted for in a manner similar to a pooling of interests since the
parties to the transaction were under common control. In connection with the
acquisition, the Company paid $3,000,000 in cash and issued 76,905 shares of
Common Stock, 2,000 shares of $1.00 par value Class A Convertible Preferred
Stock, and a 7 1/2% promissory note in the amount of $650,000.
3. INVENTORIES
<TABLE>
Inventories consist of (in thousands):
<CAPTION>
January 5, March 31,
1997 1996
---------- ---------
<S> <C> <C>
Food and beverage $1,080 $ 565
Supplies 1,797 1,268
------ -------
$2,877 $ 1,833
====== =======
</TABLE>
-6-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
4. PREPAID EXPENSES
Prepaid expenses consist of (in thousands):
<CAPTION>
January 5, March 31,
1997 1996
---------- ---------
<S> <C> <C>
Prepaid Deposits $ 717 $ 62
Prepaid insurance 709 589
Prepaid Rent 243 7
Prepaid advertising 0 35
Other 154 227
-------- --------
$ 1,823 $ 920
======== ========
</TABLE>
<TABLE>
5. OTHER ASSETS
Other assets consist of (in thousands):
<CAPTION>
January 5, March 31,
1997 1996
---------- ---------
<S> <C> <C>
Lease acquisition costs $ 504 $ 551
Cash surrender value of officer's
Life insurance 270 270
Investment in Limited Partnership 253
Premium on liquor licenses 651 651
Security deposits 174 175
Preopening expenses 26 47
Other 219 112
-------- -------
$2,097 $1,806
======== =======
</TABLE>
6. PRO FORMA NET INCOME PER COMMON SHARE
The pro forma primary net income per common share was computed by using
the weighted average number of shares and dilutive common stock
equivalents (6,081,822 shares in January 1997 and 5,991,248 shares in
December 1995) of Common Stock and Class A Common Stock outstanding as
of January 5, 1997. In addition to the weighted average number of
shares and dilutive common stock equivalents, the calculation of fully
diluted earnings per share includes 300,000 shares issuable upon
conversion of the Preferred Stock. Fully diluted earnings per share
assumes that the Preferred Stock was converted into Class A Common
Stock as of the beginning of the fiscal year.
-7-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
The Company's financial statements and the discussion and data presented below
reflect a reorganization completed in May 1995 pursuant to which the Company
acquired seventeen restaurants, four license agreements and the U.S. trademarks
of Benihana of Tokyo, Inc. and became the successor to Benihana National Corp.
(BNC) through the merger of BNC and a wholly owned subsidiary of the Company
through a share-for-share exchange of common equity.
The Company's revenues consist of sales of food and beverages sold in each of
the owned restaurants and licensing fees received from licensees. Cost of
restaurant food and beverage sold represents the direct cost of the ingredients
for the prepared food and beverages sold. Restaurant expenses consist of direct
and indirect labor, occupancy costs, advertising and other costs that are
directly attributed to each restaurant location.
Restaurant revenues and expenses are dependent upon a number of factors
including the number of restaurants in operation and restaurant patronage.
Revenues are also dependent on the average check amount. Expenses are
additionally dependent upon the costs of food and beverages sold, average wage
rates, marketing costs and the costs of interest and administering restaurant
operations.
The Company's revenues and net income surpassed the comparable periods in the
previous year. Restaurant revenue increased by 3.9% and net income increased by
7.1% for the three periods. Restaurant revenue increased 6.8% and net income
increased 14.1% for the ten periods ended January 5, 1997. Revenues continue to
increase as a result of sustained increases in patronage and the resulting
revenue improvements are reflected in increased net income and per share
earnings. In the previous year's three and ten periods, the Company provided for
federal income taxes net of benefits derived from net operating loss
carryforwards. These net operating loss carryforwards were exhausted in the
previous year and accordingly the Company is providing for federal income taxes
at full statutory rates less income tax credits for FICA taxes paid on reported
employee tip income.
REVENUES
The amounts of sales and the changes in amount and percentage change in amount
of sales from the previous fiscal year are shown in the following tables.
-8-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
<CAPTION>
Three Periods Ended Ten Periods Ended
January 5, December 31, January 5, December 31,
1997 1995 1997 1995
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
Net restaurant sales $19,573 $18,837 $63,996 $59,942
Other income 253 132 611 397
------- ------- ------- -------
$19,826 $18,969 $64,607 $60,339
======= ======= ======= =======
Three Periods Ended Ten Periods Ended
January 5, December 31, January 5, December 31,
1997 1995 1997 1995
---------- ------------ ---------- ------------
<S> <C> <C>
Amount of change in total revenues
from previous year $ 857 $ 1,750 $4,268 $4,800
Percentage change from the
previous year 4.5% 10.2% 7.1% 8.7%
</TABLE>
Three and Ten Periods Ended January 5, 1997 compared to December 31, 1995 --
Restaurant revenues continued to increase in the three and ten periods ended
January 5, 1997 as compared to the equivalent periods ended December 31, 1995.
The Company's trend of increases in comparable per unit sales continued during
the three and ten periods. Patronage continues to increase resulting from
favorable consumer response to the Company's advertising programs, from physical
improvements made to several restaurant properties, including the opening of
sushi bars at several of the Company's restaurants.
COSTS AND EXPENSES
Costs of restaurant sales, which are generally variable with sales, directly
increased with changes in revenues for the three and ten periods. The following
table reflects the proportion that the various elements of costs and expenses
bore to sales and the changes in amounts and percentage changes in amounts from
the previous year's three and ten periods.
-9-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
<TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
<CAPTION>
Three Periods Ended Ten Periods Ended
January 5, December 31, January 5, December 31,
1997 1995 1997 1995
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
COST AS A PERCENTAGE OF
RESTAURANT SALES:
Cost of restaurant food and
beverage sales 25.9% 25.4% 25.7% 26.5%
Restaurant expenses 59.7% 59.9% 61.1% 60.2%
General and administrative expenses 4.0% 5.5% 4.9% 5.4%
AMOUNT OF CHANGE FROM
PREVIOUS YEAR (IN THOUSANDS):
Cost of restaurant food and
beverage sales $289 ($54) $534 $ 53
Restaurant expenses $596 $1,087 $2,966 $2,705
General and administrative expenses ($244) ($46) ($48) (122)
PERCENTAGE CHANGE FROM
PREVIOUS YEAR:
Cost of restaurant food and
beverage sales 6.0% (1.1 3.4% .3%
Restaurant expenses 5.4% 10.9 8.2% 8.1%
General and administrative expenses (23.7%) (4.3%) (1.5%) (3.7%)
</TABLE>
Three and Ten Periods Ended January 5, 1997 compared to December 31, 1995 -- The
cost of food and beverage sales increased in total dollar amount for the three
and ten periods and increased in the three periods and decreased in the ten
periods. The comparable effect of the favorable long-term purchasing contracts
that were made for certain seafood items covering most of the Company's
restaurants have been largely realized. Restaurant expenses increased in total
dollar amount during the three and ten periods, but when expressed as a
percentage of sales, decreased in the three periods and increased in the ten
periods. The increase was due to an increase in labor costs attributable to the
additional personnel required for the extended hours of operations in some
locations. Additionally, advertising and promotion expense increased during the
current year's three and ten periods.
General and administrative costs decreased in total dollar amount for the three
and ten periods, and also decreased in the three and ten periods when expressed
as a percentage of sales. The amount decreased as a result of the collection of
franchise receivables in the current year previously reserved. The decrease in
the percentage of sales is attributable to the increase in sales compared to the
generally fixed nature of such expenses.
Interest costs decreased in the three and ten periods of the current year as
compared to the three and ten periods of the prior year. The decrease is
attributable to the decrease in total principal balances outstanding over that
of the prior year.
The effective income tax rate increased from 26% in the prior year to 32% in the
current year due to the utilization of net operating loss carryforwards in the
prior year.
-10-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company does not require significant amounts of inventory or receivables.
Therefore, the Company, as is typical with many restaurant companies, does not
have to provide financing for such amounts and operates with a minimum amount of
working capital. During the ten periods, the Company improved its working
capital position to $3,054,000 from a working capital deficiency of $300,000 at
March 31, 1996. The Company's cash position has improved to $6,532,000 from
$4,722,000, principally through the results of operations.
The Company has no material commitments for future capital improvements, but the
Company expects that it will continue to make expenditures to improve the
appearance and efficiency of its restaurants. The Company has signed leases for
two Benihana Grill locations in Dallas, Texas and Sugarland (Houston), Texas
opening in early fiscal 1998. The Company believes that it has sufficient cash
resources from operating cash flows to provide for anticipated capital
improvements as well as for construction and opening costs without additional
borrowings.
-11-
<PAGE>
BENIHANA INC. AND SUBSIDIARIES
PART II - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11 Calculation of Earnings Per Share
Exhbit 27 Financial Data Schedule
(b) None
-12-
<PAGE>
EXHIBIT 11
<TABLE>
BENIHANA INC.
CALCULATION OF PRIMARY EARNINGS PER SHARE
<CAPTION>
Ten Periods Ended
January 5, December 31,
1997 1995
---------- ------------
<S> <C> <C>
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 6,004,931 5,818,606
DILUTIVE EFFECT OF WARRANTS
OUTSTANDING 112,816
DILUTIVE EFFECT OF STOCK OPTIONS
OUTSTANDING USED IN CALCULATION
OF EARNINGS PER SHARE 76,891 59,826
---------- ----------
6,081,822 5,991,248
========== ==========
NET INCOME $3,546,433 $3,109,048
EFFECT OF DIVIDENDS ON PREFERRED
STOCK ISSUED IN CONNECTION WITH
THE REORGANIZATION (92,308) (92,308)
PROFORMA INTEREST ON DEBT INCURRED
TO FINANCE ACQUISITION OF BOT
RESTAURANTS (36,250)
PROFORMA INTEREST ON DEBT ISSUED
TO BOT TO FINANCE ACQUISITION OF
BOT RESTAURANTS (6,806)
INCOME TAX EFFECT ON PROFORMA
AMOUNTS OF INTEREST ON
ACQUISITION DEBT INDEBTEDNESS 17,222
---------- ----------
PROFORMA NET INCOME $3,454,125 $2,990,906
========== ==========
EARNINGS PER SHARE $.57 $.50
==== ====
</TABLE>
-13-
<PAGE>
EXHIBIT 11
<TABLE>
BENIHANA INC.
CALCULATION OF FULLY DILUTED EARNINGS PER SHARE
Ten Periods Ended
January 5, December 31,
1997 1995
---------- ------------
<S> <C> <C>
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 6,004,931 5,818,606
CONVERTIBLE PREFERRED STOCK 300,000
DILUTIVE EFFECT OF WARRANTS
OUTSTANDING 112,816
DILUTIVE EFFECT OF STOCK OPTIONS
OUTSTANDING USED IN CALCULATION
OF EARNINGS PER SHARE 76,891 59,826
---------- ----------
6,381,822 5,991,248
========== ==========
NET INCOME $3,546,433 $3,109,048
EFFECT OF DIVIDENDS ON PREFERRED
STOCK ISSUED IN CONNECTION WITH
THE REORGANIZATION (92,308)
PROFORMA INTEREST ON DEBT INCURRED
TO FINANCE ACQUISITION OF BOT
RESTAURANTS (36,250)
PROFORMA INTEREST ON DEBT ISSUED
TO BOT TO FINANCE ACQUISITION OF
BOT RESTAURANTS (6,806)
INCOME TAX EFFECT ON PROFORMA
AMOUNTS OF INTEREST ON
ACQUISITION DEBT INDEBTEDNESS 17,222
---------- ----------
PROFORMA NET INCOME $3,546,433 $2,990,906
========== ==========
EARNINGS PER SHARE $.56 $.50
==== ====
</TABLE>
-14-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Benihana Inc.
(Registrant)
Date January 29, 1997 /s/ Joel A. Schwartz
-------------------------- --------------------
Joel A. Schwartz
President
/s/ Michael R. Burris
---------------------
Michael R. Burris
Chief Financial Officer
-15-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
January 5, 1997 Financial Statements and is qualified in its entirety by
reference to such Financial Statements.
</LEGEND>
<CIK> 0000935226
<NAME> BENIHANA INC.
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> MAR-31-1996 MAR-31-1996
<PERIOD-START> OCT-14-1996 APR-01-1996
<PERIOD-END> JAN-05-1997 JAN-05-1997
<EXCHANGE-RATE> 1 1
<CASH> 6,532 6,532
<SECURITIES> 0 0
<RECEIVABLES> 239 239
<ALLOWANCES> 37 37
<INVENTORY> 2,877 2,877
<CURRENT-ASSETS> 11,471 11,471
<PP&E> 24,377 24,377
<DEPRECIATION> 28,058 28,058
<TOTAL-ASSETS> 39,727 39,727
<CURRENT-LIABILITIES> 8,717 8,717
<BONDS> 9,657 9,657
0 0
2 2
<COMMON> 605 605
<OTHER-SE> 20,746 20,746
<TOTAL-LIABILITY-AND-EQUITY> 39,727 39,727
<SALES> 19,573 63,996
<TOTAL-REVENUES> 19,826 64,607
<CGS> 5,078 16,430
<TOTAL-COSTS> 11,693 39,076
<OTHER-EXPENSES> 784 3,162
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 209 725
<INCOME-PRETAX> 2,062 5,214
<INCOME-TAX> 660 1,668
<INCOME-CONTINUING> 1,402 3,546
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,402 3,546
<EPS-PRIMARY> .22 .57
<EPS-DILUTED> .22 .56
</TABLE>
