Business Segment Information

9 Months Ended

Sep. 25, 2012

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 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.

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 Comprehensive Income. 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 Comprehensive Income.

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

	For the 13 Weeks Ended						For the 39 Weeks Ended
	September 25, 2012			September 27, 2011			September 25, 2012			September 27, 2011
Revenues:
Company bakery-cafe operations	$	466,369		$	397,271		$	1,374,229		$	1,157,375
Franchise operations	25,321			22,677			74,900			68,281
Fresh dough and other product operations	79,338			68,064			229,170			201,765
Intercompany sales eliminations	(41,690		)	(34,925		)	(119,791		)	(101,154		)
Total revenues	$	529,338		$	453,087		$	1,558,508		$	1,326,267
Segment profit:
Company bakery-cafe operations	$	87,920		$	71,269		$	274,420		$	217,954
Franchise operations	23,687			21,104			69,700			63,555
Fresh dough and other product operations	3,607			3,856			12,147			14,679
Total segment profit	$	115,214		$	96,229		$	356,267		$	296,188
Depreciation and amortization	$	23,828		$	20,068		$	67,290		$	58,869
Unallocated general and administrative expenses	29,257			27,271			83,202			75,790
Pre-opening expenses	2,130			1,283			6,217			3,816
Interest expense	263			194			675			616
Other (income) expense, net	692			837			1,418			(143		)
Income before income taxes	$	59,044		$	46,576		$	197,465		$	157,240
Depreciation and amortization:
Company bakery-cafe operations	$	19,985		$	17,195		$	57,764		$	50,342
Fresh dough and other product operations	1,708			1,690			5,018			5,141
Corporate administration	2,135			1,183			4,508			3,386
Total depreciation and amortization	$	23,828		$	20,068		$	67,290		$	58,869
Capital expenditures:
Company bakery-cafe operations	$	29,906		$	17,936		$	84,797		$	59,719
Fresh dough and other product operations	4,270			1,106			8,246			3,454
Corporate administration	6,412			1,911			12,242			4,762
Total capital expenditures	$	40,588		$	20,953		$	105,285		$	67,935

	September 25, 2012		December 27, 2011
Segment assets:
Company bakery-cafe operations	$	763,847	$	682,246
Franchise operations	10,970		7,502
Fresh dough and other product operations	54,129		47,710
Total segment assets	$	828,946	$	737,458
Unallocated trade and other accounts receivable	1,510		3,359
Unallocated property and equipment	28,539		21,565
Unallocated deposits and other	4,044		4,234
Other unallocated assets	335,236		260,706
Total assets	$	1,198,275	$	1,027,322

“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.