Question

What is Earnings Flow Through %?

A. How efficiently incremental sales are being converted into earnings.
B. Net Sales minus restaurant expenses excluding occupancy.
C. Amount of profit an incremental guest will contribute to earnings.
D. None of the above.

Answer 1

Earnings Flow Through % measures how efficiently incremental sales are being converted into earnings. It is the amount of profit an incremental guest will contribute to earnings.

Step-by-step explanation:

Earnings Flow Through % measures how efficiently incremental sales are being converted into earnings. It is the amount of profit an incremental guest will contribute to earnings.

By analyzing this metric, businesses can assess their profitability and make informed decisions to maximize their earnings.