Business Segment Information

6 Months Ended

Jun. 28, 2011

Business Segment Information [Abstract]

Business Segment Information

Note 10. 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 26 Weeks Ended
	June 28, 2011			June 29, 2010			June 28, 2011			June 29, 2010
Revenues:
Company bakery-cafe operations	$	394,525		$	322,424		$	760,104		$	634,924
Franchise operations		23,022			21,641			45,604			42,504
Fresh dough and other product operations		67,676			66,809			133,701			120,551
Intercompany sales eliminations		(34,143	)		(32,750	)		(66,229	)		(55,645	)
Total revenues	$	451,080		$	378,124		$	873,180		$	742,334
Segment profit:
Company bakery-cafe operations	$	75,465		$	60,105		$	146,685		$	117,688
Franchise operations		21,444			20,256			42,451			39,776
Fresh dough and other product operations		4,908			6,257			10,823			12,269
Total segment profit	$	101,817		$	86,618		$	199,959		$	169,733
Depreciation and amortization	$	19,707		$	16,915		$	38,801		$	33,924
Unallocated general and administrative expenses		23,423			22,720			48,519			46,390
Pre-opening expenses		1,555			880			2,533			1,156
Interest expense		197			165			422			333
Other (income) expense, net		(176	)		3,010			(980	)		3,316
Income before income taxes	$	57,111		$	42,928		$	110,664		$	84,614
Depreciation and amortization:
Company bakery-cafe operations	$	16,903		$	13,990		$	33,147		$	28,105
Fresh dough and other product operations		1,707			1,921			3,451			3,831
Corporate administration		1,097			1,004			2,203			1,988
Total depreciation and amortization	$	19,707		$	16,915		$	38,801		$	33,924
Capital expenditures:
Company bakery-cafe operations	$	19,893		$	9,572		$	41,783		$	18,766
Fresh dough and other product operations		2,131			974			2,348			1,499
Corporate administration		2,244			2,782			2,851			3,528
Total capital expenditures	$	24,268		$	13,328		$	46,982		$	23,793

	June 28, 2011		December 28, 2010
Segment assets:
Company bakery-cafe operations	$	645,969	$	581,193
Franchise operations		6,835		6,679
Fresh dough and other product operations		45,860		48,393
Total segment assets	$	698,664	$	636,265
Unallocated trade and other accounts receivable		2,858		9,409
Unallocated property and equipment		21,505		19,798
Unallocated deposits and other		4,373		4,549
Other unallocated assets		261,771		254,560
Total assets	$	989,171	$	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.