Business Segment Information

9 Months Ended

Sep. 27, 2011

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company operates three business segments. The Company Bakery-Cafe Operations segment is comprised of the operating activities of the bakery-cafes owned directly and indirectly by the Company. The Company-owned bakery-cafes conduct business under the Panera Bread®, Saint Louis Bread Co.® or Paradise Bakery & Café® names. These bakery-cafes offer some or all of the following: fresh baked goods, made-to-order sandwiches on freshly baked breads, soups, salads, custom roasted coffees, and other complementary products through on-premise sales, as well as catering.

The Franchise Operations segment is comprised of the operating activities of the franchise business unit which licenses qualified operators to conduct business under the Panera Bread or Paradise Bakery & Café names and also monitors the operations of these bakery-cafes. Under the terms of most of the agreements, the licensed operators pay royalties and fees to the Company in return for the use of the Panera Bread or Paradise Bakery & Café names and other services.

The Fresh Dough and Other Product Operations segment supplies fresh dough, produce, tuna, cream cheese and indirectly supplies proprietary sweet goods items through a contract manufacturing arrangement, to Company-owned and franchise-operated bakery-cafes. The fresh dough is sold to a number of Company-owned and franchise-operated bakery-cafes at a delivered cost generally not to exceed 27 percent of the retail value of the end product. The sales and related costs to the franchise-operated bakery-cafes are separately stated line items in the Consolidated Statements of Operations. The operating profit related to the sales to Company-owned bakery-cafes is classified as a reduction of the costs in the cost of food and paper products in the Consolidated Statements of Operations.

Information related to the Company’s three business segments follows (in thousands):

	For the 13 Weeks Ended						For the 39 Weeks Ended
	September 27, 2011			September 28, 2010			September 27, 2011			September 28, 2010
Revenues:
Company bakery-cafe operations	$	397,271		$	315,231		$	1,157,375		$	950,155
Franchise operations	22,677			21,521			68,281			64,025
Fresh dough and other product operations	68,064			64,181			201,765			184,732
Intercompany sales eliminations	(34,925		)	(28,939		)	(101,154		)	(84,584		)
Total revenues	$	453,087		$	371,994		$	1,326,267		$	1,114,328
Segment profit:
Company bakery-cafe operations	$	71,269		$	51,313		$	217,954		$	169,000
Franchise operations	21,104			19,966			63,555			59,742
Fresh dough and other product operations	3,856			4,970			14,679			17,239
Total segment profit	$	96,229		$	76,249		$	296,188		$	245,981
Depreciation and amortization	$	20,068		$	16,300		$	58,869		$	50,224
Unallocated general and administrative expenses	27,271			22,742			75,790			69,131
Pre-opening expenses	1,283			1,211			3,816			2,367
Interest expense	194			165			616			498
Other (income) expense, net	837			(540		)	(143		)	2,776
Income before income taxes	$	46,576		$	36,371		$	157,240		$	120,985
Depreciation and amortization:
Company bakery-cafe operations	$	17,195		$	13,420		$	50,342		$	41,525
Fresh dough and other product operations	1,690			1,855			5,141			5,686
Corporate administration	1,183			1,025			3,386			3,013
Total depreciation and amortization	$	20,068		$	16,300		$	58,869		$	50,224
Capital expenditures:
Company bakery-cafe operations	$	17,936		$	20,212		$	59,719		$	38,978
Fresh dough and other product operations	1,106			2,800			3,454			4,299
Corporate administration	1,911			2,492			4,762			6,020
Total capital expenditures	$	20,953		$	25,504		$	67,935		$	49,297

	September 27, 2011		December 28, 2010
Segment assets:
Company bakery-cafe operations	$	652,193	$	581,193
Franchise operations	7,794		6,679
Fresh dough and other product operations	45,616		48,393
Total segment assets	$	705,603	$	636,265
Unallocated trade and other accounts receivable	3,583		9,409
Unallocated property and equipment	22,102		19,798
Unallocated deposits and other	4,309		4,549
Other unallocated assets	218,944		254,560
Total assets	$	954,541	$	924,581

“Unallocated trade and other accounts receivable” relates primarily to rebates and interest receivable, “unallocated property and equipment” relates primarily to corporate fixed assets, “unallocated deposits and other” relates primarily to insurance deposits, and “other unallocated assets” relates primarily to cash and cash equivalents and deferred income taxes.