Business Segment Information

3 Months Ended

Mar. 26, 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, 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
	March 26, 2013			March 27, 2012
Revenues:
Company bakery-cafe operations	$	497,519		$	439,215
Franchise operations	26,577			24,822
Fresh dough and other product operations	79,989			71,343
Intercompany sales eliminations	(42,306		)	(36,801		)
Total revenues	$	561,779		$	498,579
Segment profit:
Company bakery-cafe operations	$	98,406		$	87,736
Franchise operations	25,058			22,801
Fresh dough and other product operations	5,085			4,397
Total segment profit	$	128,549		$	114,934
Depreciation and amortization	$	24,365		$	21,321
Unallocated general and administrative expenses	26,788			24,646
Pre-opening expenses	1,091			1,611
Interest expense	302			210
Other (income) expense, net	(2,420		)	438
Income before income taxes	$	78,423		$	66,708
Depreciation and amortization:
Company bakery-cafe operations	$	21,005		$	18,500
Fresh dough and other product operations	2,014			1,649
Corporate administration	1,346			1,172
Total depreciation and amortization	$	24,365		$	21,321
Capital expenditures:
Company bakery-cafe operations	$	28,759		$	24,921
Fresh dough and other product operations	2,190			1,917
Corporate administration	5,082			3,281
Total capital expenditures	$	36,031		$	30,119

	March 26, 2013		December 25, 2012
Segment assets:
Company bakery-cafe operations	$	789,599	$	807,681
Franchise operations	10,013		10,285
Fresh dough and other product operations	59,634		60,069
Total segment assets	$	859,246	$	878,035
Unallocated cash and cash equivalents	323,316		297,141
Unallocated trade and other accounts receivable	1,598		1,592
Unallocated property and equipment	33,616		30,161
Unallocated deposits and other	4,943		5,054
Other unallocated assets	56,712		56,180
Total assets	$	1,279,431	$	1,268,163

“Unallocated cash and cash equivalents” relates primarily to corporate cash and cash equivalents, “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.