Business Segment Information

6 Months Ended

Jun. 25, 2013

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, and 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.

Segment information related to the Company’s three business segments is as follows (in thousands):

	For the 13 Weeks Ended						For the 26 Weeks Ended
	June 25, 2013			June 26, 2012			June 25, 2013			June 26, 2012
Revenues:
Company bakery-cafe operations	$	521,038		$	468,645		$	1,018,557		$	907,860
Franchise operations	27,453			24,757			54,030			49,579
Fresh dough and other product operations	86,695			78,489			166,684			149,832
Intercompany sales eliminations	(46,175		)	(41,300		)	(88,481		)	(78,101		)
Total revenues	$	589,011		$	530,591		$	1,150,790		$	1,029,170
Segment profit:
Company bakery-cafe operations	$	107,152		$	98,764		$	205,558		$	186,500
Franchise operations	25,948			23,212			51,006			46,013
Fresh dough and other product operations	5,921			4,143			11,006			8,540
Total segment profit	$	139,021		$	126,119		$	267,570		$	241,053
Depreciation and amortization	$	25,267		$	22,141		$	49,632		$	43,462
Unallocated general and administrative expenses	28,238			29,299			55,026			53,945
Pre-opening expenses	2,081			2,476			3,172			4,087
Interest expense	178			202			480			412
Other (income) expense, net	(796		)	288			(3,216		)	726
Income before income taxes	$	84,053		$	71,713		$	162,476		$	138,421
Depreciation and amortization:
Company bakery-cafe operations	$	21,704		$	19,279		$	42,709		$	37,779
Fresh dough and other product operations	1,964			1,661			3,978			3,310
Corporate administration	1,599			1,201			2,945			2,373
Total depreciation and amortization	$	25,267		$	22,141		$	49,632		$	43,462
Capital expenditures:
Company bakery-cafe operations	$	37,255		$	29,970		$	66,014		$	54,891
Fresh dough and other product operations	1,590			2,059			3,780			3,976
Corporate administration	6,626			2,549			11,708			5,830
Total capital expenditures	$	45,471		$	34,578		$	81,502		$	64,697

	June 25, 2013		December 25, 2012
Segment assets:
Company bakery-cafe operations	$	806,612	$	807,681
Franchise operations	10,165		10,285
Fresh dough and other product operations	56,941		60,069
Total segment assets	$	873,718	$	878,035
Unallocated cash and cash equivalents	$	243,138	$	297,141
Unallocated investments	97,919		—
Unallocated trade and other accounts receivable	1,611		1,592
Unallocated property and equipment	40,690		30,161
Unallocated deposits and other	4,492		5,054
Other unallocated assets	60,161		56,180
Total assets	$	1,321,729	$	1,268,163

“Unallocated cash and cash equivalents” relates primarily to corporate cash and cash equivalents, “unallocated investments” relates to investments held to maturity, “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 deferred income taxes.