:A restaurant profit and loss statement, otherwise known as a restaurant income statement, is a financial report that gives an overview of your restaurant's revenue, costs, and expenses during a specific period of time. This tool helps you understand your net profit or loss.

The numbers from your P&L can help you identify what is helping or hurting your business, enabling data-driven decisions about cutting food costs, adjusting labor scheduling, or changing menu prices. With detailed numbers about your total costs and total sales breakdowns, a P&L provides actionable insight into the strengths and weaknesses of your business.

Most managers want their P&Ls to indicate their operating results in both dollar amounts and percentages. Some managers prefer to produce P&Ls that compare their operating results to those of a prior accounting period. Other managers prefer to produce P&Ls that compare their operating results to their forecasted (or budgeted) results.

2. Which method of P&L comparison do you feel will provide a better understanding of your restaurant's financial health; operating results compared to the prior accounting period or operating results compared to the forecast?